COVER STORY, MARCH 2008

SHOP ‘TIL YOU DROP
New retail options are cropping up across the state.
Lindsey Walker

Both big cities and small towns alike have significant retail developments underway in Texas. These projects — some new construction, some renovation — are not only bringing much-anticipated shopping options to their areas, but they also are attracting some new tenants that have not previously had locations in those markets. In this issue of Texas Real Estate Business, we take a look at four very different centers that will each have a lasting impact on their regions.

The Glen at Preston Hollow

The Glen at Preston Hollow in Dallas will focus on boutique and small retail tenants.

A new, unique mixed-use project is being planned for the Preston Hollow neighborhood of Dallas. Called The Glen at Preston Hollow, the development will focus on mostly boutique and small retail tenants.

“Neither big box nor large-scale chain stores will be a part of this intimately crafted district,” says Scott Rodgers, director of development for The Glen. “The Glen was designed with considerable input from and involvement with current area residents to ensure its aesthetic and personality fit into the already established, prestigious neighborhood.”

Situated on 43 acres at the intersection of U.S. 75/Central Expressway and Walnut Hill Lane, The Glen will feature 175,000 square feet of internalized retail and restaurant space.

“This promotes a convenient downtown environment, yielding nice spaces for outdoor dining with an appealing, pedestrian feel,” Rodgers says.

Due to its in-town location, the project will be geared toward local residents as well as out-of-town visitors. In addition, the variety of shops and restaurants will appeal to customers of all ages. In terms of dining options, The Glen plans to include at least one white table cloth restaurant as well as more casual options.

Co-developed by Provident Realty Advisors and Red Sea Group, The Glen is a result of 5 years of meticulous planning. Originally an old, outdated apartment community, the developers have spent from $300 to $400 million to transform the site into a chic, intown mixed-use environment. Other partners in The Glen at Preston Hollow development include Blatteis & Schnur and The Retail Connection, which are handling retail leasing, and WKL Interests, which is in charge of office leasing. WDG Architects is the project architect.

“The Glen is being created with a sophisticated, euro-urban sensibility that deliberately co-mingles retail, restaurant and office space with residential living, which leads to why this development will be very successful,” Rodgers says. “It was designed to gracefully complement the Preston Hollow neighborhood on the west side with a gated community of approximately 100 luxury, single-family garden homes to be built on the 17 acres immediately bordering the neighborhood, which will provide a valuable and attractive transition between existing residences. The development will be characterized by iconic Mediterranean and Spanish Colonial architecture and balanced by well-proportioned streets, landscaped parks and generous green space.”

Recently named as a finalist for the Dallas Business Journal’s Best Real Estate Deals of 2007, The Glen at Preston Hollow has received a more-than-warm embrace from the community.

“The Dallas community has truly embraced The Glen and has shown excitement for a new urban village,” Rodgers says. “The Glen will become Preston Hollow’s new downtown — something the people of Preston Hollow have never had.

Dellcrest Plaza

The recently revamped Dellcrest Plaza has brought a new lineup of tenants to an underserved neighborhood in San Antonio.

At the corner of Rigsby and S.W.W. White in San Antonio, MIMCO Inc. has turned an old abandoned shopping plaza into a successful neighborhood center that is now entering its second phase of construction. Designed by architect Alvidrez Associates Inc., Dellcrest Plaza is reviving the once overlooked intersection by bringing an exciting tenant lineup to an underserved neighborhood.

“This corner has always been very busy — more than 160,000 people in a 5-mile ring — and we felt like it was time to give it the change it needed,” says Scott Walker, director of leasing for MIMCO. “This neighborhood had not seen many new or rehabbed projects in several years, and it was definitely ready for a project with a new look and some new tenants. We are delivering it to them.”

Comprising 100,000 square feet in its first phase, Dellcrest Plaza already has leased 90 percent of its space to almost all national tenants. This success has led to the additional 25,000 square feet of Phase II, which should begin construction this month with space available next fall. The new phase will connect to the existing building, and spaces will range in size from 1,200 to 6,000 square feet.

New leases have been signed at the center with tenants such as Fallas Paredes, Melrose, La Michoacana Meat Market, and 99 Cents Only. MIMCO Inc. also was able to retain some of the original tenants, including Ma Harper’s Creole Kitchen, Bank of America and Dr. James W. Brown, DDS.

“The shopping center is catering to the neighborhood surrounding it with clean convenient shopping and value/discount-type retailers, neighborhood restaurants and groceries,” Walker says.

MIMCO Inc., which specializes in added value properties, was able to use its expertise to renovate and re-tenant Dellcrest Plaza.

“We have been building and rehabbing shopping centers for more than 30 years with a focus on value-oriented retail in infill and border areas in El Paso, San Antonio and Rio Grande Valley,” Walker says. “We work very hard to maintain a good relationship with our tenants and the surrounding community by doing the best we can on construction and then maintaining our shopping centers as clean and well-lit as possible.”

“This center gave us the opportunity to enter this market and show what MIMCO could do with construction and leasing and introduce San Antonio to our style of development,” he adds.

As a result, the community response has been very positive.

“The community has supported the retailers, and the center has been very busy,” Walker says. “In a few years, our project will be recognized as a major catalyst in reviving this neighborhood.”

The Shoppes at West Park

In Texarkana, Texas, MBC Holdings is catering to growing demographics with The Shoppes at West Park.

MBC·Holdings will bring a number of new tenants to the Texarkana market with its new retail development at the intersection of Interstate 30 and University Avenue. Stretching more than 700,000 square feet in its first phase, The Shoppes at West Park will be in the heart of the market’s growth center, located near the new Texas A&M University-Texarkana campus.

“We are very excited about the unique trade area that exists in the Texarkana area,” says Bruce Burrow, member/ manager with MBC·Holdings, a Marty Belz·Bruce Burrow Company.

This trade area encompasses more than 300,000 people living along the Texas/Arkansas border, making it one of the fastest growing urban areas in the region. Texarkana boasts a population of approximately 60,000 people.

“Our desire is for everyone in Texarkana and the surrounding area to enjoy what this development will have to offer,” Burrow says. “The Shoppes at West Park will target shoppers of all ages and economic status.”

MBC·Holdings also is the developer of The Mall at Turtle Creek in Jonesboro, Arkansas, and the company is looking to model its Texarkana project after the success of this $150 million development, which brought more than 750,000 square feet of Main Street-style shopping to the region. The Mall at Turtle Creek is anchored by Dillard’s, JC Penney and Target, and also features tenants such as Barnes & Noble, Circuit City and Bed Bath & Beyond.

“Many of the tenants that we were able to secure for The Mall at Turtle Creek, we anticipate also will be part of this project,” Burrow says. “We expect several tenants to be new to the Texarkana area.”

Having developed projects for more than 40 years, MBC·Holdings has plenty of experience in the proper way to approach projects of this magnitude.

“We take into account the retail needs of the community as well as the overall trade area and demographics that encompass the area,” Burrow says. “Our projects are successful thanks to the extensive planning that goes into them. As The Mall at Turtle Creek has proven, if a development is planned early on, success is almost guaranteed.”

Resaca Village

Resaca Village’s recent renovations have made the center better able to serve its customer base in Brownsville, Texas.

While Resaca Village isn’t a new construction shopping center development, its recent renovation has put it in a better position to meet the needs of the customers in Brownsville.

“Brownsville is and always will be a predominantly blue collar, lower income economy compared to Houston or San Antonio,” says Edward Rammrath, president of Rammrath Realty Ventures and general partner of RRV Klein Church Ltd., owner of record of Resaca Village. “This, we feel, presents the real strength of Resaca Village.”

The 173,500-square-foot power center, which originally was built in the 1960s by Roy L. Martin of San Antonio, sits at the highly visible intersection of the Highway 77 Expressway and Price Road, only 3 miles from the International Bridge connecting Brownsville to Matamoras, Mexico. Highway 77 is the city’s only major freeway corridor.

Tenants at the center include strong discount chains such as Big Lots, Factory 2-U, Family Dollar and Harbor Freight Tools. In addition, the roster features well-known retailers such as Tuesday Morning, Guitar Center and La Michoacana Meat Market.

“Retailers looking for that value customer will be well served here,” Rammrath says.

Through one of its partnerships, Rammrath Realty Ventures purchased the center from the Martin family in 2007. The company spent more than $1 million for a new façade, two new sign pylons, parking lot improvements, landscaping and a complete repainting of the entire center.

Ranked as the 10th MSA for Best Places for Business in the Lone Star State and as the second best city in the nation for Cost of Living, according to Forbes.com, Brownsville will continue to thrive economically, creating more opportunities for successful retail centers such at Resaca Village.

“The economy of Brownsville has experienced steady growth for the past couple of years and the future looks just as promising,” Rammrath says.

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