GlobeSt.com in August reported that Continental had tied up the property after Federal Realty Investment Trust in May gave up on the city-approved development and put the land up for sale. Originally a 420,000-sf proposal, the Main Street-style retail project had been planned for the site since 1999. The current iteration would have 13 separate buildings.
Last week, Continental President David Kass told a local newspaper "We have a deal with Meier & Frank. They are committed." This week, when asked by GlobeSt.com if that meant M&F had signed a lease agreement, Kass reiterated the statement but declined to flesh it out. A May Company spokesperson presented with the same question also did not answer it, but did affirm Kass' comments by saying a Meier & Frank store is slated to open at the $50-million project in the fall of 2004.
Local real estate sources tell GlobeSt.com that despite Kass' zipped lips on the specifics, if he is publicly saying Meier & Frank is on board then he's darn sure it's going to happen, because if it doesn't it could have adverse affects on Continental's reputation. As well, sources expect Continental's acquisition of the property to close in time for construction to start this July.
Federal Realty planned to develop six-to-eight buildings situated to resemble a "Main Street" rather than the typical indoor mall or strip center. Federal Realty was looking for national retailers such as Ann Taylor, The Gap, Eddie Bauer and Williams Sonoma. Meier & Frank, which hasn't opened a new location here in more than 20 years, was planned as the anchor tenant.
John Kellogg of HSM Pacific is leasing agent for the project. Scott Fuller and Mike Horowitz of Portland-based Capital Pacific are handling the disposition for Federal Realty.
According to the International Council of Shopping Centers, traditional mall development is dropping off quickly all over the country. In 1999, 13 new regional malls were completed across the nation. In 2002, less than nine were expected to open. In 2004, no more than six are expected.
Kass sees that as an opportunity. "I think there's probably only three or four (traditional malls) that will open this calendar year, but I think that really has opened door for this type of outdoor, lifestyle type product," he told GlobeSt.com in August. "The retailers that go into the malls are still opening stores, and now they have to look at opportunities like ours."
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