Tampa Luxury Retail Market Report

This has been your Tampa Luxury Retail Market Report.

A. Joseph Marshall 
Coldwell Banker Commercial
Commercial Real Estate Advisor 
Savannah, Ga 
912-790-6999

Pooler Mall Progress

SEDA has given Ben Carter's Pooler Mall development the go ahead to receive tax breaks. The mall is said to open in 2015 with work beginning later this year. Read more on this update at Savannah Area Mall Development Moving Forward. Here is my previous update on the development: http://sellingsavannahnow.blogspot.com/2012/10/atlanta-developer-to-build-luxury.html


A. Joseph MarshallColdwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999
 

AJ&C Garfunkel buys Abercorn Common

The Savannah Morning News reports that David Garfunkel with AJ&C Garfunkel purchased Abercorn Commons for $24.2 million on Thursday.

Considering KimCo paid $40 million for Chatham Plaza in June 2007 and sold Largo Plaza in March for $10 million, this seems like a heck of good deal.

Kudos to the Garfunkels for bringing the development back to local owners and keeping the it in the local economy! Next step is to get the center back up to 100% occupancy, which won't take them long at all.

Read the full article at Local investor buys Abercorn Common

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Atlanta developer to build luxury outlet mall near Savannah

This project has been in the works for the last five years and I am glad to finally see it coming to fruition!

Posted: October 10, 2012 - 12:38am  |  Updated: October 10, 2012 - 7:46am
Reported in the Savannah Morning News by Mary Mayle 

The company that built the Mall of Georgia in Gwinnett County and the upscale St. John’s Town Center in Jacksonville, Fla., is planning a 560,000-square-foot luxury outlet mall in Pooler.

The Outlet Mall of Georgia is projected to open in the summer of 2014 in the southwest quadrant of I-95 and Pooler Parkway with four anchor stores, a food court, restaurants and a wide variety of shops.

The proposed $200-million project is set to break ground next spring and would create as many as 2,000 construction jobs, according to Ben Carter of Ben Carter Enterprises. When fully open, the mall would create between 1,700 and 2,000 retail jobs, Carter said Tuesday.

The 170-acre site will accommodate another half-million square feet for peripheral retail and hotel construction.

While financing is not complete and he would not name potential tenants, pre-leasing has begun, with interest from a number of high-end retailers, Carter said.

Abercrombie, Brooks Brothers, Coach and Louis Vuitton are among the tenants in the Jacksonville mall.

“From a visitor’s perspective, one of things that is missing here is really quality retail,” Carter said.

The Savannah engineering and architectural firm Kern-Coleman is working with Carter on the project.

Carter’s unscheduled presentation came at the end of the Savannah Economic Development Authority’s monthly meeting and was greeted with enthusiasm.

“The announcement today that Ben Carter is developing a luxury outlet mall in Chatham County is fantastic news,” said David Paddison, SEDA board chairman. “In addition to the massive construction investment, job creation and additional tax revenues, the Outlet Mall of Georgia will be a significant amenity for our residents, visitors and the millions of travelers passing through the I-95 corridor.

“This will be the signature outlet project on I-95 between Florida and Virginia”

Savannah is the second largest tourism market on the regional coast with 12 million tourists per year compared to Myrtle Beach at 14 million, Charleston at 4 million St. Augustine, Fla., at 3.4 million and Hilton Head Island at 2 million, according to Carter’s research.

“The closest comparable malls along the I-95 corridor are in Virginia and Florida,” he said. “While the Savannah regional trade area alone would not be sufficient to support a mall of this size, the tourist and traffic counts along the interstate more than make up for that.”

Traffic counts on I-95 run approximately 68,000 vehicles a day or 24.7 million annually.

“This is going to be huge for Pooler and all of Chatham County,” said Pooler Mayor Mike Lamb. “This is the shopping piece we’ve been looking for to make us a more complete city.”

Pooler has been in the bulls eye of targeted growth in the area for the last decade, and Lamb credited city council and staff with helping the city make good growth decisions. “We are ready for this,” he said. “Ben Carter Enterprises is the real deal, and we really appreciate them choosing our city.”

Savannah Area Chamber of Commerce President Bill Hubbard agreed.

“There’s a lot of work still to be done, but this is a great organizaion with tremendous capability,” he said.

“We are eager to help in any way we can.”

Read more about the Outlet Mall of Georgia at Upscale outlet mall proposed for Pooler and Atlanta developer to Ben Carter build luxury outlet mall near Savannah.  

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Starland Dairy on Bull St. Sells to Thermedesignbuild

Press Release picked up from http://www.facebook.com/pages/The-Starland-Cafe/83200028433

FOR IMMEDIATE RELEASE
UNRESTORED PORTION OF THE STARLAND DAIRY ON BULL STREET SELLS TO THERMEDESIGNBUILD OF NY
New York development, design & building company coming to the Starland District.
________________________________________
Savannah, GA - The un-restored portion of the former Starland Dairy, with the iconic star building was sold to Thermedesignbuild Company today July 05, 2012.
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The former Starland Dairy, located at 2425 Bull Street (corner of 41st Street) was sold today July 05, 2012 to thermedesignbuild. The seller, Starland Properties, owned by John Deaderick & Greg Jacobs, decided to sell to thermedesignbuild because they would be a good steward for this historic structure. Since 1999, Deaderick & Jacobs spearheaded the redevelopment of over 50 blocks of downtown Savannah thus creating a new neighborhood: The Starland District. Starland Properties, Deaderick and Jacobs (together & individually) still own multiple properties in the Starland District.

thermedesignbuild is a small development and design/build company based in Manhattan but with Savannah roots. Nathan fuller, owner of thermedesignbuild, will be relocating the company and his family to Savannah in the near future to join the unique and vibrant community that is the Starland District.
In a statement regarding the future use of his company’s latest acquisition, owner Nate Fuller, said: “to be able to be a part of the history of the starland dairy community is in itself an exciting prospect. The dairy is an iconic building and the importance of preserving the architecture and historical use of the structure goes without saying. Working alongside individuals and groups within the community we hope to play an active role in the continued rejuvenation of the neighborhood”.

Starland Properties is an organization committed to the growth of our community: The Starland District.
“Because preservation is much more than just saving houses. It's also about rescuing neighborhoods”

Press Release by:
John Deaderick (912-713-6049) john@starlanddining.com – http://www.facebook.com/StarlandProperties

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

SuperValu Inc. Grocery Retailer moving to Starland

The following Press Release is from http://www.facebook.com/pages/The-Starland-Cafe/83200028433

FORMER DAVID’S SUPERMARKET ON BULL STREET SELLS TO SAVE-A-LOT
New grocery store coming to the Starland District.
________________________________________
Savannah, GA - Former David’s Supermarket was sold to national discount food retailer Save-A-Lot today July 06, 2012.
_______________________________________
The former David’s Supermarket (Savannah’s first supermarket opened in 1936), located at 2400 Bull Street (between 40th & Maupas Street) was sold today July 06, 2012 to national food retailer Save-A-Lot. A source close to the deal said that both the former grocery store and the adjoining parking lots (next to Boyz to Men barber) were part of the negotiated lots purchased in today’s closing. According to the same source, Save-A-Lot, already has all city permits ready to begin the reconstruction of the building immediately. It is still undetermined which of the various grocery store models under the parent company SuperValu inc. will be the one they will be opening at this location. However, a new grocery store in this neighborhood will be a welcome addition to the continued rehabilitation of the Starland District since its inception by John Deaderick and Greg Jacobs in 1991. It is due to the vision, dedication and planned revitalizing that both Deaderick and Jacobs have given to this neighborhood for the last 15 years that these types of national stores are now investing in the neighborhood.

The Starland District is an organization committed to the growth of our community. “Because preservation is much more than just saving houses. It's also about rescuing neighborhoods”

The author of this Press Release is:  John Deaderick (912-713-6049) john@starlanddining.com http://www.facebook.com/StarlandProperties

*Update on 8/2/2012*
Former David's Supermarket at 2400 Bull Street to be occupied by Save-A-Lot; renovation begins.
Read full article at Old David's Supermarket Will No Longer Be Vacant.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Family Dollar Comes to "Parkersville"

Family Dollar crews have begun site preparation for a new store at Presidents and Pennsylvania streets. The new location should be open by September to serve Pine Garden neighborhood residents. Adam Van Brimmer writes an opinion piece on it titled The Hot Corner on Presidents Street.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Whole Foods officially coming to Savannah; will open in 2013

Posted: May 2, 2012 - 5:21pm | Updated: May 2, 2012 - 5:23pm

 

By Savannah Morning Newssavannahnow.com Copyright 2012 Savannah Now. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

May 2, 2012 - 05:21pm

Whole Foods officially coming to Savannah; will open in 2013

After months of speculation, it's official: Whole Foods is coming to Savannah, according to the high-end grocer's second quarter report, released Wednesday.

"The Company recently signed eight new leases averaging 38,600 square feet in size," the report states, "in North Burnaby, B.C.; Alpharetta, GA; Savannah, GA; Maple Grove, MN; Albany, NY; Brooklyn, NY; Memphis, TN; and Toronto, Ontario.

"These stores currently are scheduled to open in fiscal year 2013 and beyond," the report continues.

The Savannah store will move into a portion of the site of the former Backus family automobile dealership at the junction of Victory Drive and Truman Parkway. It will measure 35,000 square feet.

The high-end grocer will be flanked by shops in a 12,000-square-foot building. Another 12,800-square-foot building is proposed on the western edge of the site.

 

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Window shopping is becoming window dressing

by David Versel   •   April 25, 2012 1:13 pm

Summary: Consumer behavior toward retail stores are changing. Young shoppers with the resources to spend  visit stores to feel affluent but purchase online. Retail spaces must be about entertainment, not just shopping.

Key Quotes:

"The old retail model of traveling to a place simply to acquire goods is dying, thanks in large part to the Internet, they said at a panel on retail during ULI's April 17 Real Estate Trends Conference. Today's successful retail destinations are much more about entertainment experiences than shopping."

"The economics of retail is shifting. According to Placemaker Michael Ewing, of Williams Jackson Ewing, retailers now rely on the "clicks and bricks" model, with their physical stores serving as venues for customers to see and learn about products that they later purchase online. Ewing said that people want to feel younger and more affluent than they really are, calling this 'the psychology of aspiration.'"

"A final obstacle to retail developments is the balance between financiers and customers. Lenders still love "national credit tenants" (the big chains), the panelists agreed, but the younger and more affluent are not interested in such stores. Those are the shoppers and residents that developers want to attract, but they have little interest in living near the stores that lenders prefer."

Read the full article at Window shopping is becoming window dressing

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Exciting development plan for former Backus dealership

 January 31, 2012 - 12:01am By Bill Dawers

Summary: Successful redevelopment of the former Backus dealership property requires cooperation between the State of Georgia, Chatham County and the City of Savannah. A reconfiguration of traffic lanes and a decision on six zoning variances are essential to the project.

Key Quotes:
The MPC will look at the general development plan for 1801 East Victory Drive, the old Backus Cadillac property. MPC staff is recommending approval of the plan, assuming five conditions can be met.

An existing median cut on Victory Drive near Limerick Street would be eliminated. A median cut closer to the Truman for access to the shopping center on the north side of Victory would be added. So would a left turn lane for westbound traffic on Victory approaching Dixie Avenue.

A traffic signal would be added at the Dixie intersection to accommodate westbound drivers who want easy access to the development.

Certain public rights-of-way would have to be vacated by the city of Savannah. That includes closing a portion of Limerick Street.

The MPC would have to grant six variances. Four of those variances involve setbacks, and one involves driving-aisle width in the parking lot. The final variance would allow a one percent increase in the number of allowable parking spaces for compact cars.
Read the full article at: Exciting development plan for former Backus dealership.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Retail Space Expansion Lowest in 40 Years

From Bloomberg on 6/22/11. To contact the reporters on this story: Shobhana Chandra in Washington at schandra1@bloomberg.net; Alex Tanzi in Washington at atanzi@bloomberg.net.



“There is no incentive to add more retail space,” said Sohn, who is also vice chairman of Forever 21 Inc., a Los Angeles-based closely held clothing chain. “The probability of getting financing for a mall is still low. Shoppers have become more price-conscious and they’re looking more than buying.”

While retail sales have rebounded and exceeded pre- recession levels, new shopping space may “continue to be minimal,” said Chris Macke, senior real estate strategist at Washington-based CoStar. A drop in vacancy rates at malls and a rise in rental prices will depend on how quickly hiring picks up, he said. Credit is “still difficult,” and “there just isn’t a lot of demand to justify” store expansions.