| FEATURE ARTICLE, APRIL 2005
CHANGING THE FACE OF HISTORY
NorthPark Center prepares for an expansion that will make it one of the strongest shopping centers in the business.
Randall Shearin
 |
NorthPark Management is continuing the center’s hallmark modern design into the new expansion.
|
|
As one of the few remaining family owned and operated regional malls in the United States, Dallas’ NorthPark Center is a crown jewel. In December, the center’s management announced a $170 million expansion that will increase the size of the center by more than 500,000 square feet and double the number of retailers at the center. Rumors have been circulating for years that the center was set to expand, and now NorthPark is ready to go, with construction already underway.
Texas Real Estate Business recently met with executives from NorthPark Management Company to get the exclusive story on the expansion. TREB met with David Haemisegger, president of NorthPark Management Company, and Christine Szalay, director of marketing and tourism for the center.
Since it opened in 1965, NorthPark has consistently been known as one of the top performing malls in the U.S. When its new expansion is complete in 2006, the center predicts that its sales volume will be $1 billion per year. Currently, the center has sales of $615 per square foot; it expects that figure to increase significantly after the expansion. NorthPark was envisioned by real estate executive Raymond Nasher, and today, NorthPark Management is owned and operated by Nasher’s daughter, Nancy, and her husband, David Haemisegger. In 2004, Macerich, the Santa Monica, California-based REIT, acquired a 50 percent investment interest in NorthPark. However, NorthPark Management still manages all operations and leasing at the center.
 |
The Neiman Marcus Court at NorthPark.
|
|
Anchored by Neiman Marcus (an anchor since the mall opened), Dillard’s and Foley’s, NorthPark was designed in a very contemporary style when it was conceived in the early 1960s. The design has been altered very little since, giving the center a museum-like atmosphere. Expansions continued the center’s distinctive look, eventually bringing it to the 1.45 million square feet that it is today. NorthPark Management plans to continue that look with its expansion, which will bring the center to just over 2 million square feet. Omniplan, the same architectural firm that designed NorthPark in the 1960s, is designing the expansion.
“The design goal for the expansion is to have a modern interpretation of NorthPark and to still make it compatible with the existing center,” says Haemisegger.
What the Expansion Will Bring
 |
NorthPark Management pays attention to details: landscaping is one area that never gets overlooked.
|
|
The first change to take effect at NorthPark is the addition of a Nordstrom store, which began construction in 2004. The three-level, 200,000-square-foot store will open this fall along with the first phase expansion of small shops that will connect it to the Neiman Marcus wing of the center. That phase will open November 11. The second phase of the expansion will connect Nordstrom with the existing Foley’s store and will include more small shop space and a new 15-screen AMC theater on the third level. The second phase of the expansion will open on April 1, 2006.
In-line tenants that have recently opened at NorthPark include Ralph Lauren, Kate Spade, Stuart Weitzman, Burberry, Custo Barcelona, BCBG, Façonnable, Lucky Brand Jeans, Lacoste, Anthropologie, Tumi, Jacadi, Club Monaco and more than 30 others. A number of NorthPark’s existing tenants will be relocating to the expansion, and NorthPark Management is using that opportunity to locate new retailers and expand existing retailers in the older space, which will also be renovated to a degree. As of March, NorthPark Management had commitments for 86 percent of the space in the expansion. By moving a number of retailers, NorthPark is making sure it has the right tenants at the right size in the right location.
“We made a huge effort to get our tenants in the proper store sizes,” says Haemisegger. “We often have stores that do very well and they may not currently have enough square footage for their full lines. We want to help them have their best presentation possible at NorthPark. We are also concerned about their locations in the mall. We want them to have the proper co-tenancies so that they can maximize their sales.”
Both the Neiman Marcus and Dillard’s at the center have consistently been the Number 1 or Number 2 stores in their chains since their openings, while the Foley’s store has been the Number 1 store in the Dallas market for many years.
The expansion has three levels; some retail will be on the first and second levels, with the theater on the third level.
 |
NorthPark Center in Dallas.
|
|
A big part of the expansion will be the addition of a number of restaurants to the center, as well as a food court-like offering for customers.
Aside from the new retailers being added, there is another benefit of the expansion. The layout of the center will change so that it is basically a quadrangle centered around a 1.4-acre garden space. Shoppers will be able to walk completely through the mall, without any dead-ends or without having to retrace their steps.
“We think the new design will be great for the shopper,” says Haemisegger. “We’ve eliminated the side halls; the shopper can walk through the entire mall in a loop, never having to turn around or go back to exit.”
While design for the garden space is still being developed, NorthPark Management has many ideas that are being incorporated into the space. The garden is designed as a focal point for the center. NorthPark Management expects the open space to attract customers who need a break from shopping, or those who are not shopping at all. It wants to offer something in contrast to the hustle and bustle taking place inside. Some retail and restaurants, offering food and beverage, will line the perimeter of the space. NorthPark Management also wants to have some art in the garden as well. It may also serve as a major event space.
Visible from the garden will be the AMC theater, which will sit on the third level of the expansion. Rather than locate on the periphery of the center, NorthPark wanted a theater located in the center without taking up valuable in-line space. After talking with many theater chains, NorthPark realized that AMC, which has been successful in incorporating theaters into centers like Atlanta’s Phipps Plaza, was the right partner.
“AMC was the only theater provider that was integrating with the mall,” says Haemisegger. “We wanted the activity that the theater brought in the mall, not outside the mall. AMC understands the synergy and the interaction between the theater and the retail and the food.”
 |
More outdoor eating areas, like this one currently operating at NorthPark’s Maggiano’s unit, are planned for the center’s expansion.
|
|
Two new parking garages will also be developed for the center as part of the expansion. One will be a five-level garage that can park about 1,700 cars. Another garage, located near Nordstrom, will have six levels and hold 2,200 cars. Both of the garages will have bridge entrances to the department stores they sit next to as well as entrances into the mall.
Art has always been an attraction at NorthPark. The Nasher Family has long been a collector of modern art. Currently, more than 70 works — including those by artists like Frank Stella, Jonathan Borofsky, Antony Gormley and Andy Warhol — are on display throughout the year. NorthPark Management hopes to expand the showings of its collection in the expansion.
Tops For Tourists
When the expansion is complete, NorthPark will be a real attraction for Dallas visitors. Already located in a great market — average household income in NorthPark’s core market area is $124,568 — the center is expected to become one of the top five retail destinations in the U.S. after the expansion opens. NorthPark, through its marketing efforts, will become a national and international draw for tourists. It will be the only center in the Dallas market anchored by Neiman Marcus and Nordstrom as well as the two best moderate department stores and a stellar line-up of top in-line tenants.
“At the end of the day, I think the tenancies will be great, all the retailers will be properly positioned and everything will stand the test of time as it has since 1965,” says Haemisegger.
 |
Ready to lease space? Here's an overview of the center's site plan after the renovation. |
|
©2005 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.
|
