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HOUSTON-The 77-acre Northline Mall, built in the 1960s, is being replaced by an 850,000-sf, open-air power center. The new space will be built on perimeter land so the mall can remain open during construction, which gets under way this year and wraps up in late 2006.
"We'll be able to construct most of the power center while the existing mall is open and then move the existing retailers over to the power center and then demolish the mall," Alan Hassenflu, a principal with Fidelis Realty Partners, tells GlobeSt.com. Northline Mall sits at the intersection of Interstate 45 and Cross Timbers Road.
Locally based Fidelis is handling the redevelopment for the mall's owners, Boston-based Berenson Associates Inc. and Eastbourne Investments Ltd. of Williamsville, NY. Berenson developed the 800,000-sf Northline Mall in the 1960s and just completed the sale of a 50% interest to Eastbourne Investments. Industry experts speculate properties like Northline Mall would be worth about $30 million. Fidelis will become a partner in the venture when the project's completed.
Northline Mall is one of the oldest retail centers in the Bayou City. "It's obsolete for today's retail market," Hassenflu says. The mall is 60% to 70% occupied by tenants including Magic Johnson Theatres, Palais Royal, Houston Community College and Picadilly Cafeteria.
The power center will include general merchandise and big-box retailers as well as restaurants and inline retailers. "For most of this year, we're going to work on lining up merchants and getting leases signed," Hassenflu says, declining to speculate on theproject's cost. "The rental rates for the power center have yet to be determined. We will make the market."
According to Hassenflu, the neighborhoods around Northline Mall are underserved. The closest major retail development is seven miles from the center. Locally based CDA & Associates is designing the development, but the general contractor has not yet been chosen.
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