| FEATURE ARTICLE, SEPTEMBER 2008
RETAIL REVIEW
A brief look at a few of the new, exciting shopping center projects that are under way across the state.
Compiled by Lindsey Walker
Center Street Village
Kyle, Texas
Location (street, city, state): Northeast corner of Interstate 35 and Center Street in Kyle, Texas.
Size: 30 acres
Cost: Ranges from $5 to $17 per square foot, depending on the size and location of the parcel.
Construction timeline (start/completion dates): Infrastructure complete and ready for permitting.
Who is involved with project: MDM Development is the developer and owner.
What makes this retail center special or unique?
a) 1,200 feet of I-35 visibility;
b) Parcels can be purchased or ground leased;
c) Size of parcels are 0.80 to 14.68 acres;
d) Developer will do BTS;
e) Less than 2 miles south of new Seton Family of Hospitals (a 210-bed facility expected to open late 2009); and
f) Kyle is fifth fastest growing city in Texas, but it lacks restaurants, office, multifamily projects and hotels, making this an excellent opportunity.
Why will it be a success?
Center Street Village will be a success for a variety of reasons. It is directly across I-35 from the historic center of Kyle and provides an opportunity to link east and west. The property has excellent visibility for northbound and southbound traffic on the interstate, and access is already very good. With the planned expansion of the Center Street bridge and the extension of FM 150 to the east, access will be enhanced, and more traffic will be driven to the property.
What type of shopper does it target?
It could cater to the shopper, diner, those seeking ancillary medical assistance, office user and visitor needing overnight accommodations. It could lure the I-35 commuter, student, visitor and local home owner.
Will it be a tourism draw?
The draw could be for the overnight or extended stay lodger who needs accommodation in the area.
What has been the response of customers so far? Of the community?
The community is very excited to see Center Street Village emerge with shopping, restaurants, hotel, office and multifamily uses.
Why was your company the right company for this project?
Grubb & Ellis is one of the largest diversified real estate service companies worldwide. Grubb & Ellis professionals offer owners, corporate occupants and investors comprehensive real estate solutions, including transaction, property and facilities management and consulting services, and a broad range of real estate investment vehicles. With more than 1,800 brokerage professionals in its owned and affiliate offices, the company has the capability to serve its’ clients needs in virtually every market.
— Jeredith Duvall is vice president and Molly Polk is senior associate with Grubb & Ellis in Austin, Texas.
Buckner Crossing
Dallas
Basic information about project: Buckner Crossing is a retail gateway for the Pleasant Grove neighborhood in Southeast Dallas. Dallas developer Dave Carter of NorthPoint Properties will plant the projects on two corners at the junction of Buckner and Samuel boulevards near Interstate 30.
Location (street, city, state) Buckner Crossing I is located at 5620 South Buckner Boulevard. Buckner Crossing II is located at the southwest corner of Buckner and Samuel boulevards.
Size: Buckner Crossing I is 12 acres, and Buckner Crossing II is 19 acres
Cost: $30 million
Construction timeline (start/completion dates): Ground will break by year’s end on the 105,000-square-foot Buckner Crossing I, with its second phase not too far behind. NorthPoint will deliver Phase I by late summer 2009 and Phase II in first quarter 2010.
Other relevant information:
Buckner I will come out of the ground with a 27,689-square-foot Ross Dress for Less on a 10-year anchor lease, and deals are currently in the works with Payless Shoe Source, Anna’s Linens and Rainbow Shops. All four pad sites will be delivered by the end of this year, including Resource One Credit Union, Dunkin’ Donuts and a duplex building, with Panda Express and T-Mobile working on deals.
Buckner II will be anchored by a 45,000-square-foot LA Fitness, which will be a reverse build-to-suit deal for 5 of the 19 acres. The second phase will add 25,000 to 35,000 square feet of in-line retail space to the project and additional pad sites.
Who is involved with project:
Dave Carter, of NorthPoint Properties, is the developer/owner; Tad Weatherford, also of NorthPoint Properties, is the developer; John Zikos and Charlotte Walley of Venture Commercial are the brokers, along with Giovanni Palavicini of Fronteras Commercial Real Estate; Mark Lobel of O’Brien & Associates is the architect; and Westwood Contractors, Inc., is the general contractor.
What makes this retail center special or unique?
By targeting the Hispanic shopper we will be able to tap into the $686 billion that comes from the sector each year. Retail analysts predict Hispanic consumers will be spending $1.2 trillion annually by 2011.
Why will it be a success?
The site is a community/regional site and is the gateway to the entire Pleasant Grove market. The most effective way to capture the customers in the Pleasant Grove trade area is to be at the top of the funnel, which is why Wal-Mart, Sam’s, Staples, Ross, and LA Fitness have all chosen this location.
What type of shopper does it target?
We’re targeting the Hispanic customer, after recognizing the depth of their purchasing power. Buckner Crossing is the first ground-up retail to rise in five years in a diverse ethnic pocket with 324,432 residents in a five-mile radius and an annual average household income of $54,842.
Will it be a tourism draw?
No.
What has been the response of customers so far? Of the community?
So far the feedback from the community has been very positive.
Why was your company the right company for this project?
John Zikos with Venture Commercial has had substantial experience in big box shopping center leasing, and has built relationships with anchor tenants and their brokers.
Palavicini formed Fronteras in November 2007 specifically to tap into the Hispanic retail marketplace. He stresses that retailers are seeing how quickly the Hispanic market is growing and have started to realize their spending power.
Is there anything else that you would like to share about your project?
We still have opportunity for a second junior anchor in Buckner I. We can accommodate between 20,000 and 28,000 square feet.
— John Zikos is a partner with Venture Commercial.
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Shoppes at Wilderness Oaks
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The Shoppes at Wilderness Oaks
San Antonio
Location (street, city, state): Southwest corner of State Highway 281 and Wilderness Oaks/Summerglen in San Antonio.
Size: Land area is 33.94 acres; building area is 37,000 square feet.
Construction timeline (start/completion dates): Construction is set to begin December 1, 2008, with estimated completion in August 2009. Pad sites will be available in the second quarter of 2009.
Who is involved with project:The owner of the property is Weingarten Realty.
What makes this retail center special or unique?
It is closely located to the affluent and densely populated Stone Oak community.
Why will it be a success?
It has a strategic location on SH 281 with exposure to over 90,000 vehicles daily.
What type of shopper does it target?
The affluent shopper living and working in the Stone Oak community and market area.
Will it be a tourism draw?
No.
Why was your company the right company for this project?
Weingarten Realty specializes in developing neighborhood and community centers, and we have done so for 60 years.
Is there anything else that you would like to share about your project?
We are pre-leasing and marketing the shop space and pads now. Currently, we are negotiating with casual dining, fast food restaurants, pad users and small shop tenants.
— John Wise is senior leasing executive for Weingarten Realty.
Grand Corners
Katy, Texas
Location (street, city, state):Northeast corner of Grand Parkway (Highway 99) and Westpark Tollway (FM 1093) in Katy, Texas.
Size: 400,000 square feet.
Construction timeline (start/completion dates): Start day is set for mid-2009 with completion in 2011.
Other relevant information: Grand Corners is part of the Grand Lakes development.
Who is involved with project: This is a joint venture between Connected Development Services, LLP, the development arm of The Retail Connection, LP, and Granite Properties.
What makes this retail center special or unique?
The project is located at the intersection of two major thoroughfares in an affluent, high growth region of Fort Bend County. Why will it be a success?
This location is at the heart of the most desirable demographic retailers target, in one of the highest growth areas of the entire Houston SMSA. Providing these new retail, restaurant and entertainment options to this previously underserved area will make it successful for both retailers and the community.
What type of shopper does it target?
A regional draw of high-income families.
Will it be a tourism draw?
Perhaps. We are in discussions with a high-end theater concept entering the market, and this location and demographic is in their “sweet-spot”.
Why was your company the right company for this project?
Since The Retail Connection exclusively represents over 170 tenants in Texas, our developments are completely retailer driven. Often retailers don’t find acceptable locations within a given market and request that our Connected Development arm fulfill that need. It’s our tenant relationships that make this happen. Regarding the location, the retailers already near this location have some of their highest comp sales in all of Greater Houston. The affluent demographic and high growth is the attraction.
— David E. Kayle is senior vice president of Connected Development Services.
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