Development/Redevelopment

Northeast retail real estate benefits from region’s improving economy

The country as a whole has weathered some difficult economic times in the past several years, with the Northeast among the hardest-hit regions.

In the old days, outlet centers either didn’t offer food options or the pickings were pretty lean. In today’s iteration, however, food often takes center stage.

Villa Enterprises, a 50-year-old multi-brand restaurant operator of banners such as Villa Italian Kitchen, Mo’ Burger, South Philly Steak & Fries and Tinta Mexicana, has set the curve with its “Food Hall by Villa” in Simon’s Arizona Mills Shopping Center in Tempe. In a completely transformed, 13,262-sq.-ft. dining space with 14,280 sq. ft.

Prolific developer Trademark Property Company is doing its part to ramp up the country’s new development and active redevelopment stats. The Fort Worth, Texas-based firm has five projects under construction:

Corner Bakery Cafe is in a growth mode. The company, which was acquired in 2011 by Roark Capital Group, an Atlanta-based private equity firm, is entering new markets and opening locations across the country, from New York City to Las Vegas. It will end the year with 185 cafes (114 company-owned and 71 franchised). The company plans to more than double its U.S. footprint by 2017 through a combination of franchised and company-owned cafes.

Gary Price, a restaurant executive with over 20 years of experience, joined Corner Bakery Cafe as president in October 2012.

Englewood, Col. - Sports Authority continues to roll out its enhanced store environment in both existing stores and new locations nationwide. Most recently, the retailer completed the remodel of an existing store and also opened two new units in the Las Vegas area.  

CANTON, Mass. - Dunkin’ Donuts continues its aggressive expansion with the signing of multi-unit store development agreements with five franchise groups for a total commitment of 63 new restaurants in the greater San Francisco Bay Area, Palm Springs and Bakersfield over the next several years.

CHICAGO - Best Buy’s 43 Chicagoland stores are sporting a fresher look and assortment upgrades after the retailer’s $20 million overhaul earlier this year.

The stores’ face-lifts cover multiple areas, from new fixtures, carpeting, lighting and paint, to new customer experiences and shopping areas in stores.

Store enhancements include:

New York - It appears that Hudson’s Bay Co. got itself quite a deal when it purchased Saks Fifth Avenue in 2013 for the sum of $2.9 billion, including debt. Saks’s signature  Fifth Avenue flagship has recently been appraised at an whopping $3.65 billion—significantly more than Hudson’s Bay paid for the entire chain.  As much as anything, however, the appraisal reflects the strength of Manhattan’s retail real estate market.

With the value of its flagship store on New York City’s Fifth Avenue appraised at an astonishing $3.7 billion, Saks parent Hudson’s Bay Co. has taken out a $1.25 billion loan to pay down debt and finance a $250 million renovation in 2015.

BATAVIA, Ill. - Deep-discount grocer Aldi is ramping up its U.S. expansion. The company plans to open 650 new stores across the country, including expanding to Southern California, bringing its total number of U.S. stores to nearly 2,000 by the end of 2018.