Growing Strong After 50 Years
George D. Zamias, his family, and his companies have evolved through the years. While he was one of the pioneers of the mall industry, Zamias continues to create new projects — and revitalize acquisitions — today.
Randall Shearin

George and Marianna Zamias (seated) have been in the shopping center industry for 50 years through their companies, George D. Zamias, Developer, and Zamias Services, Inc. Their sons (standing, left to right), Stephen, Sam and Damian, serve in various executive positions in the business.

In 2007, George D. Zamias marks 50 years in the shopping center business. Since brokering an Acme Markets sale in 1957 and using the experience as a springboard into building, developing, leasing and managing shopping centers, Zamias has been an energetic innovator and an uncanny identifier of building sites, yet he has never strayed from the credo that fostering tenant and lender relationships are the keystones for 50 years of success.

Zamias, the founder of Johnstown, Pennsylvania-based George D. Zamias Developer, and has overseen the steady growth of his original company over the course of a half-century in business. Likewise, Zamias spawned Zamias Services Inc, the leasing and management company headed up by his three sons, Damian, Sam and Stephen. Recently, Shopping Center Business talked to George Zamias, his sons, Sam and Stephen, and Perry Russ, Zamias’ executive vice president of leasing. The topic was wide ranging, but the focus was on George Zamias’ remarkable ride in the shopping center industry.

Zamias has had a particularly busy period since 2000. Zamias is implementing various growth strategies, the foremost of which are ground-up Wal-Mart Supercenter and home improvement anchored shopping centers and the purchase of existing shopping centers with significant redevelopment potential. Also, Zamias has taken the reins of ownership (with partner Kan-Am), leasing and management of the Galleria at Pittsburgh Mills.

Carlisle Commons, Carlisle, Pennsylvania.

Despite the fact that George D. Zamias could recount endless accomplishments and the many stories that go with them, he is securely fixed in the present with a keen eye to the future. Within the last 18 months, Zamias has acquired more than $300 million in existing shopping centers, while assembling the dirt to support five major developments totaling just over 2 million square feet.

The Galleria at Pittsburgh Mills provides interesting insights into the vision of George D. Zamias and his tireless ability to make such a vision into reality. After having been the original option holder of the ground where Ross Park Mall was developed, Zamias and his sons saw the need for a suburban Pittsburgh Mall that had ease of access with a multi-use commercial development. Zamias zeroed in on the ideal site on Route 28 North in Tarantum,  only minutes from the Allegheny Valley Exit of the Pennsylvania Turnpike and just a few miles from the affluent suburbs of Fox Chapel, Oakmont and Shadyside. The land was originally optioned in the 1980s and the project was born.

Carlisle Commons, Carlisle, Pennsylvania.

“We had immediate interest from our key anchors and various lenders to provide financing, but the land use issues were numerous and challenging, which led to serious delays. Also, we had to design, coordinate and permit the entire infrastructure as the site was as raw as I had ever encountered,” says George D. Zamias.

Consequently, Zamias moved forward with other entitled mall projects in the 1990s and slowly chipped away at the future Mills site. Ultimately, Zamias and The Mills Corporation joined forces to construct the project and the vision was realized. The Galleria At Pittsburgh Mills is the center point of the project with the peripheral ground fulfilling the multi-use vision with Super Wal-Mart, Lowe’s, numerous restaurants and big boxes.

Within the overall Pittsburgh Mills project, The Village At Pittsburgh Mills is another facet of the site being developed by Zamias. “This power center will have six big box users that will add to the diverse shopping distinction of the entire project,” says George D. Zamias. “The original anchors I enlisted in the late 1980s are present at The Galleria At Pittsburgh Mills and we have transformed the remainder of the project into a multi use retail hub with ingress, egress and parking unmatched in the industry.”

Buckhorn Plaza, Bloomsburg, Pennsylvania.

Zamias also has a significant presence elsewhere in the Pittsburgh market, but gained this presence through another of its growth strategies. In 2005, Zamias acquired from Casto-Skilken a portfolio of five shopping centers.

“The Casto portfolio was perfectly suited to our company’s strengths and goals, namely, the purchase of prime retail locations that had plenty of redevelopment potential,” says Sam Zamias. “We teamed with our equity partners, Pearson Partners, and mapped out a redevelopment plan with all five centers similar to that which we implemented in our existing portfolio.”

The largest redevelopment of this portfolio is taking place at Miracle Mile Shopping Center in Monroeville, Pennsylvania. The center was 70 percent leased when Zamias purchased it, but the Route 22 corridor and Miracle Mile’s name recognition positioned it for potential growth. The company has renovated the center and retenanted it with K&G Menswear, OfficeMax and LA Fitness. The center has the first K&G Menswear and LA Fitness units in Pittsburgh. The center is now 100 percent leased.

“We’ve upgraded the tenant mix significantly with national credit tenants,” says Russ. “We’ve brought new retailers to the Pittsburgh market.”

LA Fitness will locate in three of the five Zamias centers in Pittsburgh by Spring 2008. LA Fitness was ready to enter the Pittsburgh market and was attracted to the fact that it could have one landlord in Zamias and cover three major geographic sectors of the city for its initial rollout in the market.

Buckhorn Plaza, Bloomsburg, Pennsylvania.

On the ground-up development front, four new Zamias projects will be added to the portfolio and will be featured during the ICSC Spring Convention in Las Vegas this month.

The first project is HT Commons in Tamaqua, Pennsylvania. The 203,000-square-foot shopping center will be anchored by a Wal-Mart Supercenter and contain 48,000 square feet of small shop space. Wal-Mart opened in early April and another dirt to grand opening transformation was celebrated by Zamias.

Zamias is also developing a 750,000-square-foot center in Nashville, Tennessee. Nashville Commons will also be anchored by a Wal-Mart Supercenter, as well as Lowe’s Home Improvement Centers and a number of other big box retailers. The site at Dickerson Pike and Route 155 began construction commenced in mid-April.

In Taylor, Pennsylvania, a suburb of Scranton, the company is demolishing the existing Taylor Hills Shopping Center to build a 204,000-square-foot Wal-Mart Supercenter along with 100,000 square feet of other shops. Zamias will rename the center Taylor Commons upon completion. Groundbreaking occurred on March 30 with the center to open in early 2008.

In Pittston, Pennsylvania, near Wilkes-Barre, the company is developing Pittston Crossings, a new 300,000-square-foot shopping center anchored by a Wal-Mart Supercenter.

“We’re pleased that we have a lot of opportunities with Wal-Mart,” says Sam Zamias. “Our relationship with them runs many years back. In addition to the current construction, we have three pending deals with Wal-Mart in Florida.”

“Over 50 years, we have experience in all kinds of centers,” adds George Zamias. “The retail business has been up, down and around and, fortunately or unfortunately, I’ve survived all of it. We’ve seen the ups and downs of the industry and prefer to stay with our proven formula. You need the strong relationship with anchor tenants and familiarity with the national small shop tenant. In one afternoon, my sons and I can pick up the phone and talk to the major players and begin to put a deal together.”

The company will continue to acquire centers — both malls and strip center properties — as well as identifying and acquiring land to develop new centers. Zamias has owned centers in 18 states, and prefers to be east of the Mississippi River, but will go anywhere for the right opportunity. In acquisitions, the company is looking for centers that are strategically located but not fully leased and have some room for value to be added.

“We have no hesitation to acquire centers that are 65 to 75 percent leased,” says Stephen Zamias. “We have the ability to find and attract the additional retailers that will bring it to 95 percent or 100 percent occupancy. Although we really don’t see ourselves building new malls anytime soon, we are acquiring malls if the opportunities are right.”

Russ uses the example of the Casto portfolio as the ideal purchase for Zamias. “The majority of the centers in the portfolio were around 50 years old,” he says. “They needed features like new facades, parking lots, lighting, and new tenants.” With a proven track record in refurbishing and redeveloping projects in its own portfolio, the challenges presented at Miracle Mile, Great Southern and Southern Plaza were taken on with enthusiasm. The positive results at each reflect the Zamias approach is working.

To accommodate its growth, Zamias has added personnel in its leasing, construction, legal and accounting departments. The company performs every aspect of its business in house. Zamias has five divisions. An architectural/construction department handles details of centers under construction and planning. A legal department handles lease and development details. Its finance and accounting department handles those needs of the company. The operations and property management handles aspects of operating the widely varying shopping centers. Zamias also performs third-party management duties for other entities as well. As co-presidents, brothers Sam and Stephen Zamias divide their duties by department: Stephen handles accounting, finance, and property management; Sam oversees legal and leasing. Zamias handles third-party development, tenant representation and landlord representation in western Pennsylvania. “That has been a really strong growth platform for us,” says Sam Zamias.

The company represents Foot Quarters, a new concept from Foot Locker, Mattress Warehouse, Moe’s Southwest Grill, Book Warehouse and Gold’s Gym.

“Retailers love to do business with us because we are easy to deal with and we know the business,” says George Zamias. “We build relationships when we build centers. Our size and creativity, plus our being privately held, enable us to do things that many companies could never do.”

In addition to Sam Zamias and Stephen Zamias, George Zamias has another son, Damian Zamias, who serves as chairman of Zamias Services. George’s wife Marianna is also active in the business.

“She has been standing shoulder to shoulder with Dad for 50 years in the business and with us as we’ve grown up in the company,” says Sam Zamias. “She is a tremendous woman to be working with as well.”

The Zamias executive team is a natural extension of the family-owned business. “We spend a lot of time in Dad’s office going over deals and looking at prospective centers,” says Sam Zamias. “We all multi-task. We love the business. It’s exciting because we’re continuing to grow.”

George Zamias, who is one of the pioneers of the shopping center industry, is still at it and enjoying the art of the deal more than ever. He is still one of the top dealmakers at the company, and loves to land new business.

“We have to go on shifts when we travel with Dad,” says Sam Zamias. “We can’t keep up with him. He was unrelenting in terms of teaching us the business, but I’m certainly thankful for the knowledge I’ve gained from him.”


©2007 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.