INDEPENDENCE, MO—A lot of people in commercial real estate have lamented the decline of brick-and-mortar retail. Others, however, see underutilized malls and empty storefronts as opportunities. And tearing down these properties often makes less sense than finding new uses appropriate for an era when consumers shop so much online.
Pacific Retail Capital Partners, for example, recently decided to step in as the operator of Independence Center, an iconic lifestyle shopping center in Independence, MO, just outside of Kansas City. Boasting more than one million square feet of retail space and 12 million annual visitors, Independence Center has been one of the region's largest shopping centers since opening in 1974, but in recent years it struggled. Last year, Simon Property Group, its previous owner, defaulted on $200 million loan.
The El Segundo, CA-based Pacific Retail has purchased and then launched efforts to revive similar centers in other metro areas.
“We definitely do not have a one-size-fits-all program,” Najla Kayyem, senior vice president of marketing, tells GlobeSt.com. Instead, company officials examine how shoppers and nearby residents use a particular center and in what role it could play in a given community. And they are not put off or worried about the overall decline of brick-and-mortar retail.
“A lot of these projects are at Main and Main streets,” she says, “and great locations don't go out of style.” The company plans to reinvigorate the property by improving its retail and restaurant mix, hiring additional full-time staff, and enhancing the specialty leasing program. Perhaps just as important, it will also create a robust event calendar with community partners. That way, the center will be seen as something more than just a place to shop.
“We want people in the area to be proud of their center,” Kayyem says. She echoes the thoughts of many people currently developing or renovating retail centers in that these spaces need to provide experiences “that really create a community environment.” But in contrast to some owners, Pacific Retail has the time to fully evaluate a site's potential.
“Unlike the REITs,” many of which are heavily involved in such retail, “we're not under pressure” to constantly produce quarterly gains. “We have the ability to hone in on what's right for the long-term.”
Dillard's, Macy's, Sears and Dicks Sporting Goods anchor Independence Center, which also features an H&M clothing store that was added last year, plus another 120 stores.
In late 2017, Pacific Retail officials said they would soon begin a multimillion dollar renovation of Northpark, a 958,000 square foot mall in Ridgeland, MS. Gensler Architects, based in Los Angeles, leads architectural and design efforts with Unified Construction serving as the general contractor. The renovations will include: new entrances, dining area, children's play area, restrooms, interior and exterior landscaping, furniture, fixtures, lighting and common areas.
“Investing in Northpark and this strong community benefits everyone,” Gary Karl, chief operating officer of Pacific Retail Capital Partners. “The renovations and added amenities will provide an improved experience, for both our retailers and community. The fresh dining venues, children's interactive play experience and family lounge create a stylish and warm, family-friendly gathering hub for Ridgeland.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
