Disney World area center sells for $29.5 million
A 44,095-sq.-ft. center serving the Disney-planned community of Celebration, Florida, has been acquired by Ben Hur Investments of New York for $29.5 million.
The fully leased Shoppes at Celebration Place, also nearby Disney’s Florida headquarters and theme parks, is a popular necessity-based center that fields Walgreens, Applebee’s, Arby’s, Dunkin’ Donuts, Chipotle, and Five Guys.
Stan Johnson Company, which brokered the deal, stated that it received several offers for the property from investors nationwide.
“After a thorough bid process, which included institutional and private investors, we selected [Ben Hur] who performed flawlessly,” said Joey Odom, director of Stan Johnson’s Atlanta office.
Mall at Prince Georges announces new tenants
The D.C. area’s Mall at Prince Georges has announced the arrival of a new slate of off-price tenants in PREIT’s remerchandising of the property.
Flight 23 by Footaction has already opened and will be followed at the Hyattsville, Maryland, mall by DSW, Five Below, Ulta Beauty, and Grand Jewels in 2018. Individual storefronts will be employed by Grand Jewels for Alex and Ani, Pandora, and Kendra Scott.
Three new quick-service restaurants will also be opening at Prince Georges later this year and into 2018. The popular Chipotle Grill and Five Guys Burgers & Fries will be joined by Mezeh Grill, which serves freshly-made Mediterranean food.
Several resident tenants have refreshed their stores at Prince Georges. Bath & Body Works expanded to make room for the White Barn Candle concept. Victoria’s secret did an upgrade and added PINK. Old Navy relocated with a new store prototype, and DTLR is finalizing its remodel plans.
“MPG represents one of the best opportunities in our portfolio, located just outside of Washington D.C. in a densely populated market that continues to improve,” said Joseph F. Coradino, CEO of PREIT.
Malls pour billions into remodels
The nation’s shopping owners are investing heavily to transform their properties.
Looking to create destinations that captivate shoppers beyond mere retail purchases, mall owners have spent more than $8 billion in renovations during the past three years, according to a new report by JLL. The study, “A New Mall Rises,” explores 90 super regional and regional malls tracked by the firm that are currently undergoing or have gone through a significant renovation during that time period.
“Many of the 90 properties we looked at are elevating their role beyond purely shopping and becoming destinations for dining out and entertainment, community activities and even lodging and residential.” said John Lambert, director of retail development for JLL.
The capital improvement upgrades in malls reviewed by JLL fell into five main categories:
1. Food/entertainment: Forty-one percent of malls added food and beverage options, and of those 55% also added entertainment offerings.
2. Non-retail. Forty-three percent of malls are adding non-retail uses, including multifamily, office, hotels, call centers, schools, distribution centers and/or medical facilities.
3. Community. Twenty percent of malls are dedicating space to the community, including open green spaces and kid-friendly play areas.
4. Makeovers. Ninety-four percent of malls are getting a makeover through common area improvements, rebranding and/or making tenant upgrades.
5. De-malling. Twenty-two percent of malls are actually de-malling the space or demolishing it for the highest and best use in the community.
These top five ways to redevelop a mall have their pros and cons, but they all need to prove one thing in common – a return on investment or at the very least, a cap on the opportunity loss, JLL said.
“As a general rule of thumb, mall owners who place an impactful amount of capital into a renovation hope to see an 8%-10% increase in sales,” said added Larry Jensen, director of business development for JLL’s National Retail Property Management practice. “But, minor renovations that simply attempt to keep properties current and afloat aren’t likely to drive a noticeable change in the bottom line.”
Before an owner begins a renovation, they need to consider the value of the property and the cost of the redevelopment, as well as their anticipated return, Jensen advised.
“But, they also need to consider the alternative,” he said. “What’s the cost of not renovating as shoppers become bored and move on to other venues?”