Retail Projects Across America
A look at several retail projects under development across the U.S.
Contributors: Brian A. Lee, Dan Marcec, Lindsey Walker and Kevin Jeselnik

With a lot of new development going on in the U.S., and the redevelopment of many properties as well, Shopping Center Business took a look at some current projects going on across the U.S. We chose projects of all shapes and sizes, from mixed-use new development to suburban mall redevelopment, to incorporate a wide sampling of developments.

The Cosmopolitan
Las Vegas, Nevada

Rendering of The Cosmopolitan Resort & Casino, a $1.5 billion retail, restaurant and residential development that will break ground this summer. The development will feature 170,000 square feet of retail when it opens in 2008.

“I honestly believe that this retail and restaurant center has all of the attributes to be the most successful center, in terms of sales per square foot, in the world,” says Jim Reding, director of retail for developer 3700 Associates LLC.

The Cosmopolitan will consist of two 50-story glass towers totaling approximately 3,000 rooms, 2,000 of which will be “condo-hotel” offerings; 170,000 square feet of prime retail space, housing between 45 and 50 retail store, boutique and shop tenants; 130,000 square feet of restaurants and lounges; a 75,000-square-foot casino; 150,000 square feet of meeting and ballroom space, and much more.

The Cosmopolitan's uniqueness will be found both inside and out, but let's start with location. It's situated on the corner of Las Vegas Boulevard and Harmon Avenue, the latter being a main thoroughfare for traffic coming from the airport. If the Strip is viewed in terms of a retail corridor with Wynn Las Vegas and The Venetian on the north end and Mandalay Bay on the south end, the corner of Las Vegas Boulevard and Harmon Avenue is right in the middle. The resort's next door neighbor to the north is the Bellagio, which, of course, boasts those amazing fountains, the Number 1 outside tourist attraction in Las Vegas, according to the Las Vegas Convention and Visitors Authority. To the south, The Cosmopolitan will be connected by bridge to the MGM CityCenter, a Manhattan-esque development featuring 18 million square feet of hotels, condominiums and amenities that will mean an incredible influx of traffic for its neighbor.

Las Vegas Boulevard pedestrians and others will be coming to The Cosmopolitan to experience a dynamic mix of retail and restaurant offerings never before seen in Las Vegas. The configuration of retail and restaurants on the first three floors fronting the Strip was based on convenience for the consumers. “This whole idea of guests having to schlep through a casino, when they're not ready to play, to get to the amenities is not the case at this property,” says Reding. “In fact, the casino is positioned [in back] as an anchor to the retail and restaurants. The restaurants are going to be all grouped together in one district on the third floor right over the Strip. People dining there are going to have spectacular views of the Bellagio's fountains, the Eiffel Tower, Las Vegas Boulevard looking south, etc. Over the restaurants, about 90 feet above street level, is going to be a nightclub district, which will have incredible exposure to the Strip.”

The restaurants were deliberately placed in one area, again for convenience purposes. The nine to 11 restaurant tenants — “powerful names that have not been to Las Vegas yet” — will not only be attracted to the Cosmopolitan's glass perimeter for the spectacular views their patrons will enjoy, but also because they'll be able to put logos up, allowing them to have their brands on the outside of the building.

Slated to open in early 2008, The Cosmopolitan will be positioned to take advantage of Las Vegas' burgeoning condo development trend as well. This new market direction means the influx of a whole new consumer segment to the city. “People are calling it the bringing of the cosmopolitan lifestyle to Las Vegas,” says Reding. “These amazing condominium projects coming to town are bringing a whole new high-end demographic. That is why this property is being designed to be completely accessible to drive-in traffic as well.”

The development will have two entrances — one on either side of the property — to the five-level, 3,800-space underground parking structure. “Following the same philosophy of giving pedestrians direct access into the retail and restaurant area of the property, if someone wants to toss their car keys to [a valet], they can and go straight up to their restaurant or store of choice,” says Reding.

The Cosmopolitan project came out of a unique partnership between Ian Bruce Eichner, noted developer of the Continuum luxury condo tower in Miami's South Beach, and David Friedman, a casino expert whose latest project was The Venetian. The marriage of their different but dynamic backgrounds is manifested in the unique plans for The Cosmopolitan. Miami-based Arquitectonica and Friedmutter Group, based in Las Vegas, make up the architectural team while Terry Dougall and Paul Duesing are handling interior designs for the project.

According to Reding, the designs are to wow visitors and residents alike with a standout lineup of retail and restaurant offerings and a unique condo-hotel mix in an unprecedented arrangement, all catering to an evolving city.

“Even 15 years ago, nobody came to Las Vegas to shop,” he says. “Everybody came here to gamble. Now it's falling to a very low percentage, the amount of tourists who come here primarily to gamble. They want to do everything else as well. It's going to be a long time — long after MGM CityCenter, long after The Venetian's expansion — when this market is saturated from a shopping and dining point of view.”

Calhoun Square
Minneapolis, Minnesota

When Eden Prairie, Minnesota-based Solomon Real Estate Group acquired Calhoun Square several months ago, it had big plans in mind for the 20-year-old retail development. The property, which is located in the edgy, urban Uptown District in downtown Minneapolis, had lost its luster during the years, according to Jay Scott of Solomon Real Estate Group. “It was developed in the early 1980s as part of a trend that existed at the time, which was an entertainment-type retail complex in an urban core,” he says. “For many years it flourished. Yet, during the last 5 to 10 years as some of those properties came out of vogue, the retail elements lost favor and were converted to more entertainment-oriented uses. So some of the traditional retail elements have been lost.”

Solomon Real Estate Group is redeveloping Calhoun Square in Minneapolis.

As it currently exists, the project includes a four-story parking garage and a two-story mall property. With the redevelopment, Solomon is buying four additional properties, which it is adding back into the mall itself. The company is then vertically integrating housing units on certain portions of the product above the retail level.

“We'll also implement some office space on the second level at what would be some of the least desirable areas from a retail application standpoint,” Scott says. “But, most of the mall itself, as well as the expansion portion, will be in retail format.”

A number of the mall's original tenants will be retained; however, Solomon plans to incorporate a wide array of different concepts into the current mix. The company is talking to such retailers as Best Buy, with a two-story, urban concept; Borders Books, with a possible two-story expansion; The Limited, with an expanded Express presence and possible Victoria's Secret and Bath & Body Works; North Face; Z Gallerie and Crunch and/or Gold's Gym. While none of the deals are secure, according to Scott, the state of the market leads him to believe that his company will not have a problem landing good retailers.

“The downtown market has really gone through a major revitalization during the last 5 years and it's an incredibly dynamic marketplace right now,” Scott says. “The retailers are really flocking to come back into the marketplace. The problem is that they can't find a home to come back to.”

On top of the national retailers, Calhoun Square will also feature an assortment of local shops that represent Uptown's unique flavor.

“One of the things that makes Uptown unique is that it is a very eclectic kind of neighborhood,” Scott says. “We have a number of localized businesses that are really trendy and specialized that keep the character of Calhoun Square consistent with the character of Uptown. There will be a number of those businesses blended in with some of the more traditional businesses.”

With such distinctive retail offerings, Solomon hopes that Calhoun Square will, once again, live up to its prime location.

“Calhoun Square has always sort of been the anchor of Uptown, just because of how it's positioned at the intersection of Hennepin Avenue and Lakes Street, which is the main point of the whole Uptown District,” Scott says. “It's a very visible property, and we want to re-establish it as a retail destination.”

Scott Hoffland of MCG Architecture, which is providing architectural services for the project, notes that Calhoun Square's ability to incorporate the area's character — while still looking ahead — should make Solomon's vision become a reality.

“It is a true urban redevelopment and revitalization that respects the history of Calhoun Square and the Uptown District of Minneapolis, while allowing the project to meet future needs and opportunities of Uptown Minneapolis,” Hoffland says.

Completion of the redevelopment, which is scheduled to break ground this summer, is expected in 2007 or 2008.

Merriam Pointe
Merriam, Kansas

The former Lucent Technologies industrial building, which is located on the southwest corner of 67th Street and Interstate 35 in Merriam, will soon have a new face. Merriam Pointe LLC is redeveloping the 34-acre property into an approximately 125,000- to 150,000-square-foot shopping center called Merriam Pointe. The site will also feature a new car dealership and approximately eight outlots.

Merriam Pointe in Merriam, Kansas.

Merriam Pointe LLC decided to redevelop the site into a shopping center because its “highest and best use was commercial,” according to Stiner.

However, converting an industrial building into a shopping center does not come without its share of challenges. From demolishing the mostly concrete building to regrading the site to creating a frontage road to widening 67th Street, the $50 million to $60 million redevelopment project is proving to be no easy task.

“We've been working with the city of Merriam and we have a tax-increment financing plan to help with the redevelopment,” says Stiner. “There was a major cost to just demolishing the old building, plus the grading and everything else — it is a pretty substantial redevelopment.”

Stiner, though, believes that the end product will be worth the effort.

“This project is going to create a lot of sales tax revenue for the city of Merriam, which it didn't have when the site was developed as an industrial use,” he says. “The area also needs the additional shopping. From our initial contacts with retailers, Merriam Pointe has been received very well.”

While Stiner said that they are not ready to announce the tenants that will locate to the center, he does say that several letters of intent have been signed.

“We have three letters of intent for the shops, and two letters of intent for the outlots,” he says. “And we are under contract with the auto dealer.”

Merriam Pointe is anticipated to be under construction this fall with an opening date in spring 2006. Davidson Design Group is providing design and architectural services.

North Grand Mall
Ames, Iowa

Barrington, Illinois-based GK Development, which is currently redeveloping three properties in Illinois and Iowa, understands the inherent hardships that come with redeveloping older centers.

“An existing center presents certain physical restrictions, such as renovating with the least disruption to shoppers and existing tenants or configuring space to accommodate new tenants,” says Garo Kholamian, president of GK Development. “Often older centers have suffered from the benign neglect of institutional or geographically distant owners. The challenge is to seek opportunities to bring the property to a higher level of performance that will result in an increase in NOI.”

North Grand Mall, which GK acquired December 2004, is a 349,163-square-foot regional mall in Ames, Iowa. The property will be under expansion, renovation and redevelopment in mid-2006 with the first phase adding 80,000 square feet of new space.

“We believe there are many options to expand the mall without overwhelming the site,” Kholamian says. “We expect to add another anchor, as well as fashion offerings, that will enhance the shopping experience.” GK is retaining all of the current tenants at North Grand.

As the only enclosed regional mall in Ames, North Grand is the dominant mall in the trade area, which boasts a growing and diverse population. The mall serves a population of 133,000 consumers with a median age of 33, as well as the 25,000 students and 12,000 employees of Iowa State University.

“Our experience tells us that redevelopment, expansion and creative repositioning of an existing property such as North Grand Mall is efficient and elicits support from the community, leading to a more successful property and a more exciting shopping venue,” Kholamian says. “Our decision to redevelop the property is closely allied with our strategic plan to maximize the mall's potential from a shopping and operational perspective.”

Lemont Plaza
Lemont, Illinois

GK Development is also hard at work on Lemont Plaza, a 116,800-square-foot community center in Lemont, Illinois, which is one of the fastest growing communities in the southwest Chicago suburbs. Located near the high-traffic intersection of State (Lemont Road) and 127th streets, Lemont Plaza offers retailers good visibility at a core intersection with traffic-generating anchors, according to Kholamian.

“Smaller service and convenience tenants can take advantage of the neighboring big-box drawing power, easy access and shopping convenience of Lemont Plaza,” he says. Lemont Plaza is retaining all of its current tenants.

Work on the property began last fall, and completion is set for the third quarter of this year. Features of the redevelopment include a new 4,000-square-foot outlot; re-configuring existing space into four, 5,000-square-foot units; replacing exterior finishes with earth-toned masonry across the center's façade; new earth-toned store sign finishes; and new earth-toned entrance signs.

“Our objective is to give the center an updated, unified look and provide added space for convenience and service tenants,” he says. “Lemont Plaza was built in the mid-1960s, with additions constructed in the ‘70s and ‘80s. It lacked a unifying appearance and needed substantial renovation.”

Lemont Plaza, like North Grand Mall, possessed the components that GK Development looks for when acquiring a property.

“Typically, the centers we acquire have 80 percent of the right elements; we are fixing the 20 percent of those that are not right,” he says. “Such projects demand a vision, the willingness to tackle the complexities and a long-term commitment. We are willing to make the commitment necessary to enhance the value of our properties.”  

The Promenade Shops at Shadow Creek
Pearland, Texas

Poag & McEwen Lifestyle Centers has chosen Pearland, Texas, as the location of its largest lifestyle center yet. The Memphis, Tennessee-based company — which has $1 billion worth of lifestyle projects currently underway — is developing The Promenade Shops at Shadow Creek, which will encompass 865,000 square feet of retail space upon completion. Situated on 127 acres at the southwest corner of the Beltway 8 and Highway 288 intersection, this new lifestyle center lies right in the middle of a heavy traffic area that provides excellent visibility and access to the complex.

“We have come across an opportunity that is extremely rare,” says Terry McEwen, president of Poag & McEwen Lifestyle Centers. “It is very unusual to come across 127 acres of zoned flat cleared land at the intersection of two major freeways, 15 miles from the closest regional mall or competition. And this is all located in a submarket of Houston, the fourth largest city in the United States.”

In addition to an ideal location near Houston, the project is adjacent to Spectrum at Clear Creek and Shadow Creek Ranch. Spectrum at Clear Creek is a 1,000-acre business park that will include up to 9 million square feet of offices, mostly in the biotechnology field. Shadow Creek Ranch is a 3,500-acre residential and business development that features 11,500 residential units, 4 million square feet of offices, seven schools, two hospitals, medical offices, and a University of Texas research campus. Furthermore, the site is near new residential communities and land available for new residential development — and it is located only 10 minutes from the Texas Medical Center, the largest employer in Houston and the largest medical center in the world.

The Promenade Shops at Shadow Creek will be the largest lifestyle center in the Houston area. The project is scheduled to break ground in spring 2006; completion and the grand opening are set for August 2007. The project will contain 420,000 square feet of anchor retailers, including a fashion department store, a large sporting goods store, a bookstore, a specialty grocer and a fitness center. In addition, the site features five freestanding restaurants and seven in-line restaurants, fast-casual establishments and specialty food operations. The dining and restaurant component will total roughly 60,000 square feet, and specialty shops make up approximately 385,000 square feet. Additionally, a hotel is planned for the development, which will bring the total area of the project to approximately 1 million square feet.

The Promenade Shops at Shadow Creek will feature lakes, fountains and other water features, which are designed to make the area more attractive to pedestrians. Other aesthetic features include upscale architecture, lush landscaping and a meandering main street. TVS Architects of Atlanta is working on the site plan aspects of the project, but Poag & McEwen has not chosen which architect it will use for the design aspects of the project.

Currently, leasing is just beginning for the specialty shops and restaurants, and the anchor deals are being finalized. The developer is seeking retailers typical of Poag & McEwen lifestyle centers, which traditionally include national specialty stores and retailers mixed in with some of the best local and regional retailers.

“The Promenade Shops at Shadow Creek will have a tremendous impact on the city of Pearland,” says Fred Welch, executive director of the Pearland Economic Development Corporation. “We are estimating a direct impact of roughly 1,500 jobs and more than $200 million a year in revenue. The center fulfills a need for upscale retail in the area, and we are very excited to work with Poag & McEwen on this project.”

Rapid growth in the Houston area was the initial catalyst for this project. In both the commercial and residential sectors, Houston has become one of the fastest growing cities in America. Coupled with the fact that there has been a major void in quality retail across the board in the Houston market, this kind of development is anticipated with high demand. 

Cooper's Crossing
Camden, New Jersey

Steiner + Associate's Cooper's Crossing (foreground) is underway in Camden, New Jersey, just across the Delaware River from downtown Philadelphia.

“We started this project with the idea of redeveloping and expanding the current aquarium facility. As we got into it, we felt it was important to make sure it wasn't just about visiting the aquarium on the Camden waterfront, but about creating an overall experience,” says Barry Rosenberg, principal and president of Columbus, Ohio-based Steiner + Associates. It was from this desire to establish the Camden waterfront as a destination that Cooper's Crossing, Steiner's expansive mixed-use project featuring office, residential and entertainment uses, was formed.

Though the Ben Franklin Bridge is in close proximity, residents, workers and visitors to Cooper's Crossing will have direct access to Philadelphia via a cable car transit system that is under construction. The tram connects the Camden waterfront to Penn's Landing across the river in Philadelphia and is expected to be operational in early 2007.

“The state of New Jersey is investing $175 million into the city of Camden through the ERB, which is doing everything from putting in infrastructure work, upgrading the schools and working with multiple residential builders to develop different types of residences throughout the city,” says Rosenberg.

Once Steiner committed to spearheading the development of the entire 35-acre tract that comprises the Camden waterfront, the company established a master plan. With the infrastructure in place and with numerous incentives and credits from the NJEDA, Steiner set out to evaluate the best use for the site.

The Ferry Terminal Building will be the first office facility completed in Cooper's Crossing. The 103,650-square-foot building will feature 83,100 square feet of office space as well as ground-floor space designated for 2,100 square feet of retail space and multiple restaurants.

The entire project is expected to be a 10-year undertaking, and when completed the total cost will be between $400 million and $500 million. The aquarium, which has been renamed Adventure Aquarium, reopened last month, and Steiner is readying for the development of the project's first office building. The 103,650-square-foot Ferry Terminal Building is set to begin construction early this summer. Consisting of 83,100 square feet of office space on the second through fourth floors, the Ferry Terminal Building will offer the same amenities as offices in Philadelphia, but at more reasonable rents and with the benefit of New Jersey's multiple incentive packages. The building's ground floor will feature 18,450 square feet of restaurant space and 2,100 square feet for retail use. Completion is expected in May   2006. According to Rosenberg, Steiner is currently in discussion with two or three other office tenants that are looking at developing build-to-suit office properties of approximately 100,000 square feet on site and Susquehanna Bank has already committed to relocate its corporate headquarters to Cooper's Crossing. Rosenberg believes that interest will pick up once companies see the initial tenants move into the area and the community takes shape.

Situated on 34 acres along the Delaware River in Camden, Cooper's Crossing will feature a mix of build-to-suit office space, residential development and ancillary retail, directly across the river from Philadelphia.

Steiner expects to develop the retail as support to the growing business and residential population that will soon inhabit the waterfront. “In the Ferry Terminal Building, we are looking at two or three signature restaurants to occupy the first floor,” says Rosenberg. “What we really see for the retail component is more ancillary retail that will support the office and residential components, as opposed to a true shopping destination. There might be a market, a dry cleaners and other convenience retail.

Rosenberg believes that this development, along with the other improvements occurring along the waterfront, will change the face of the city. “What you're seeing is the idea of marketing the area as one waterfront. So instead of looking at it as the Philadelphia waterfront and the Camden waterfront, this development will bring the two sides closer together,” he adds. A key factor in joining the two cities together is a cable car transit system that will transport individuals over the river from one city to the other, connecting at Penn's Landing on the Philadelphia side.

Though now only in the earliest stages of development, Cooper's Crossing stands to play a pivotal role in the economic revitalization of the city of Camden and in bridging two divergent cities into a unified waterfront.