(For more retail coverage, click GlobeSt.com/RETAIL.)
PHOENIX-The first phase of the renovation and repositioning of the 1.4-million-sf Metrocenter is on schedule for completion by the holiday season. With exterior work out of the way, interior upgrades will begin in January.
The major focus of the exterior renovation, launched about two months ago, calls for replacing the parking lot and overhauling the landscaping of the 32-year-old retail asset, located at 9617 N. Metro Parkway along Interstate 17. If construction stays on track, the makeover, inside and out, will be completed in third quarter 2006.
Ten months ago, Macerich, in partnership with Boston-based AEW Capital Management LP and Somera Capital Management of Santa Barbara, CA, paid $160 million for the 32-year-old, super-regional mall. Since then, they've been working out the repositioning and redevelopment plan. Macerich holds a 15% stake in the asset.
"We wanted to get the exterior work completed in time for the holidays because we didn't want to have to inconvenience customers during that season," says Sherry DeCovich, senior marketing manager with Westcor, a subsidiary of the Santa Monica -based Macerich Co. By year's end, she says the only exterior work left to do will be at mall entrances. She tells GlobeSt.com that the entrances will be converted into plazas, probably beginning in January 2006 when the second phase--all interior work--is set to get under way.
"We're anticipating some things will begin in January or February, but we're not sure just yet what that might entail," DeCovich says. Ultimately, she notes, the goal is to refurbish the entire interior.
Along with physical renovations are remerchandising efforts, with lease renewals executed for about 36,000 sf from Aeropostale, Bath & Body Works, Crescent Jewelers, d.e.m.o., Guess, Hat World, Lane Bryant, Shiekh Shoes and Foot Locker. In addition, new retailers finalizing deals or negotiating are American Eagle Outfitters, Deb Shops, Flip Flop Shops and Journey's Kids, which are anticipated to occupy a combined total of 25,000 sf.
Metrocenter's renovation budget wasn't available by press time. According to SEC documents, Macerich has earmarked $150 million to $200 million this year for development, redevelopment, expansions and renovations to its properties, including a pro-rata share totaling $35.7 million for JV assets.
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