New owners to redevelop North Dallas retail center
A mostly vacant shopping center in North Dallas is finally getting some love.
The Hillcrest Village retail center has been purchased by 2GR Equity and Shop Cos. and will be completely renovated in the next 12-24 months, reported the Dallas Morning News.
The redevelopment will include revamped building exteriors, new lighting, signs and landscaping. Also, one of the six retail buildings on the property will be torn down and replaced with a 1.5-acre park.
“We believe this asset is long overdue for redevelopment given its access, location and visibility,” 2GR Equity principal David Gregory said in a statement to the Dallas Morning News. “When you add the element of a brand new city park in the middle of the retail center, along with up to $3 million of conditional grants from the City of Dallas, 2GR believed this investment opportunity had a lot of merit.”
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Designer fashion brand ‘pops up’ at Oak Park Mall
Women’s lifestyle and apparel brand, RACHEL Rachel Roy announced that it will open a pop-up shop – its first brick-and-mortar location – at Oak Park Mall in Kansas City.
The opening of the pop-up shop in late September coincides with Kansas City Fashion Week where both RACHEL Rachel Roy and CBL Properties-owned Oak Park Mall will participate in events throughout the week.
The pop-up will serve as a showcase for RACHEL Rachel Roy to debut its holiday collection, which includes women’s sizes 0-24, jewelry and outerwear.
“The pop-up shop at Oak Park gives us the opportunity to debut our brand to a new city as we develop what our owned retail footprint could look like,” said Michele Santos, senior director of retail development for Rachel Roy. “We’re looking forward to working with CBL on similar opportunities in other markets in the future.”
The digitally native brand, founded by fashion designer Rachel Roy, already has a strong presence in department stores like Macy’s, Nordstrom and Lord & Taylor.
“One of CBL’s key priorities has been to cultivate relationships with digital natives looking to expand into physical retail,” said Stephen Lebovitz, CEO, CBL Properties. “We are excited that Rachel Roy has selected CBL’s Oak Park Mall to be the home of their first in-mall pop-up shop, and we look forward to helping them introduce the brand to Kansas City.”
Report: Retail still lags during boom times for real estate
At 4.2%, the GDP growth rate in the second quarter is the highest it’s been over the past nine years of economic expansion, and investors will be plowing money into commercial real estate, according to Cushman & Wakefield’s current U.S. Macro Forecast.
“Nearly every possible metric suggests the U.S. economy – at least as it relates to the property markets – is in excellent shape,” said Kevin Thorpe, the company’s global chief economist.
But the investor playbook will become “more nuanced,” said the report, meaning investor dollars will flow more freely into office and industrial real estate versus retail.
While Class A retail properties will continue to attract investment dollars, B and C properties will scrape for cash infusions aimed at redevelopment. Excluding urban and mall retail space, Cushman forecasts that net absorption at shopping centers will taper off in coming years, with the vacancy rate rising from the present 6.6% to 6.8% in 2020.
Noting that GDP growth will hit consumers with higher inflation, Cushman’s head of research Revathi Greenwood still sees a healthy outlook for commercial real estate.
“In general, the outlook signals that commercial real estate values will continue to rise. There’s momentum behind the current expansion, and it would take a major shock to derail it,” Greenwood said.