Shopping Centers Today

MAR 2015

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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"We want to give people a reason to go into New Haven," Zucker said. In November seven additional establish- ments opened at the Shops, including Kiko Milano, an affordable Italian cos- metics store. "Students told us there was no place to buy makeup," Zucker said. "We looked around and learned that Kiko was just beginning to look at the United States market. We were de- lighted they chose New Haven as one of their first locations." Not every college looking to spruce up its nearby retail offerings had to start from scratch. In the 1990s, Rice University leased land to Weingarten Realty Investors to develop a shopping center two blocks from campus, in the arts district. It was the only truly "walk- able" street district in Houston, devel- opers claimed. The 195,000-square- foot, two-level lifestyle center with storefronts mirroring the architecture of buildings on campus was innovative at the time. Then the tenant mix got a bit stale, and the sidewalks fell into disrepair, says Terry Montesi, CEO of Fort Worth, Texas–based Trademark Property Co., the new leasing agent for the project, called Village Square. Last February Rice Management Co., the entity responsible for Rice Uni- versity's endowment, purchased the leasing and development rights from Weingarten. One of the reasons Rice University acquired the property was that it wanted to "have a positive im- pact on the immediate area [around campus]," said Montesi. "They wanted to upgrade the retail and restaurant landscape, to help improve the quality of life for their students and faculty." Trademark took over management of the property last September and wants the center, which houses about 50 stores and restaurants, among them Chico's, Gap and New York & Com- pany, to "become more fresh, more lead- ing edge, more youthful" to better serve the college community. "We want to stay away from old-fashioned, yesterday's tenants." The management company is in the early stages of its redevelopment plans but is courting local, independent restaurateurs and boutiques, using input from the Rice University community to help with selection. "The demand is ex- traordinary," Montesi said. Though close proximity to a univer- sity makes these developments seem eas- ily profitable, observers note the risks of campus retail development. Often the biggest barrier to entry is the assembling of the site, Branscomb says. "The closer you are to campus, the harder it is to as- semble a site that is large enough to re- ally make an impact," he said. The best results occur when a uni- versity or municipality facilitates the land acquisition. Additionally, deal- ing with multiple partners and with universities that tend to move slowly because of bureaucratic restraints can make for long development timelines, meaning that investors are unlikely to see returns for many years. When done properly, however, these projects can pay back financially and in other ways also. In 2012 Kent State finished the first phase of a $100 million mixed-use center that includes a hotel, an office complex and some eateries. These past two years the university has welcomed a larger and better-qualified freshman class in GPA terms than ever. "Sometimes," said Branscomb, "you have to look at case studies like these to demonstrate to universities and neighborhoods why what's good for one is good for the other." S C T M a r c h 2 0 1 5 / S C T 39 Date of Opening Size Features Project cost College Town Kent Kent State University, Ohio Fall 2012 150,000 sf 15 new shops and restaurants, professional offce space, upscale apartments $30 million College Town Rochester University of rochester (N.Y.) Fall 2014 500,000 20+ new shops and restaurants, gourmet market, hotel, profes- sional offce space, 150 upscale apartments, 1,500+ space parking garage $90 million 23 Twenty Lincoln Iowa State University, ames, Iowa Fall 2015 187,000 320 beds of upscale student housing, 119 parking spaces, ground foor retail including campus bookstore Na College Park Mixed Use University of Maryland 2020 (projected) 95,430 55,000 sq. ft. grocery anchor, with 556 residential units Na COMING TO CAMPUS

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