Adam Riddle’s Post

https://lnkd.in/dNjtHYd8 Indoor malls, which usually have large surface parking lots, present a favorable opportunity for developers to build large mixed-use projects amid a scarcity of large developable tracts in dense neighborhoods, noted Jaime Sturgis with Native Realty, a Fort Lauderdale-based brokerage. “You have these big boxes and big pads on a tremendous amount of land that is underutilized,” Sturgis said. “These big retail centers are in prime locations that are well suited for some type of redevelopment, usually market-rate and affordable housing.”  Developers planning mall-to-mixed-use conversions also benefit from dealing with willing sellers that want to offload underperforming big box spaces, or that want to partner with a builder to add a residential component to an indoor shopping center, Sturgis said.  “As occupancy wanes, the debt service ratio for malls falls, and loans mature. Simultaneously, owners of those properties start exploring alternative exit strategies,” Sturgis said. “They can sell a portion to someone who can come in and do a better development, or they may do a joint venture by bringing in an equity partner to redevelop the asset.” Native Realty

Clybourn Place Development Update. Shopping Center Remake on Chicago’s North Side Could Include 500-Unit Apartment Tower Owner of Clybourn Place Says It Plans To Knock Down and Replace Most of Existing Retail Space. After losing the original Goose Island Beer brewpub, Patagonia and Bed Bath & Beyond as tenants, the owner of a shopping center on Chicago’s North Side is proposing a major redevelopment that eventually could include an apartment tower as tall as 520 feet. CRM Properties is drawing up major changes to the mostly vacant, 3-acre Clybourn Place shopping center in Lincoln Park, the largest of which would be the addition of up to 500 luxury apartments in a later phase, according to preliminary plans provided to CoStar News. If plans for an approximately 50-story tower are eventually approved by the city, it would bring significant changes to the Clybourn Corridor shopping district and nearby, low-rise residential streets east of Clybourn Avenue. https://lnkd.in/eUjb7EY3

Developers are revitalizing aging malls by converting former department store spaces into residential apartments. A study by JLL found that in 2022, nearly 54% of mall redevelopments incorporated housing, with about one-third of redeveloped anchor spaces, often former Sears stores, transformed into residential units. This trend not only addresses the nation's housing shortage but also brings a steady stream of on-site customers, boosting surrounding businesses and breathing new life into these retail spaces. https://lnkd.in/dyCb4Gt6

Insightful article in Modern Retail titled "Developers turn to apartments to help revive aging malls, often replacing former department stores" including yours truly PRCP and our work at Yorktown Center. Read the article below to hear more about our plans to reinvent the old Carsons anchor with a new an open-air plaza with apartments next door. ⤵ 🏗 #CRE #Redevelop #NextGenMalls #AssetManagement #MixedUseAsset #Lombard #PRCP #AssetDevelopment #CommercialRealEstate https://lnkd.in/dyCb4Gt6

What's Happening in #Tampa / #StPete: South Tampa shopping center Britton Plaza is about to be listed for sale! Will this open up the possibility of redeveloping the property? The sale of Britton Plaza will be a generational transaction for Tampa, attracting institutional investors who will pay a market-high price. It sits on roughly 30 acres adjacent to some of Tampa's wealthiest neighborhoods. It has significant big-box vacancies, making it primed for redevelopment: Stein Mart, Big Lots and Tuesday Morning have closed locations there. Bealls Outlet is expected to close in April. But redeveloping the property won't be easy; it will be a yearslong endeavor, as the new owner will be limited by existing leases and their stipulations. I’d love to hear your thoughts: What could Britton Plaza become? How can we develop the site thoughtfully while paying tribute to its history, aiming to restore its vibrancy in South Tampa? https://lnkd.in/eTGeJcs8 Tampa Bay Business Journal RIPCO Ari Ravi Hybridge Commercial Real Estate Scott Dobbins Bruce Strumpf, Inc. #redevelopment #SouthTampa #tamparealestate #realestate #construction #forsale #valuation #mixeduse #opportunity #townhomes #multifamily #retail #office #cre

🏢✨ Say Hello to Life at the Mall! What if your favorite mall became your new home? Across the U.S., struggling shopping malls are transforming into vibrant, mixed-use communities. Developers are reimagining these spaces by adding housing units, creating places where you can live, shop, dine, and even play—all in one spot! 🌳 From green spaces and walkways to on-site amenities like gyms and restaurants, these revamped malls are offering convenience, community, and a fresh take on urban living. 🏘️ With a housing crisis in full swing, adding apartments to malls isn’t just innovative—it’s necessary. This trend breathes new life into vacant retail spaces, builds much-needed homes, and supports the local economy. In our region, the Oglethorpe Mall in Savannah, is joining this national movement! Housing units are being added to its footprint, transforming the historic shopping destination into a vibrant, mixed-use community that combines retail and residential spaces. Whether it’s luxury units in Phoenix, affordable housing in Indianapolis, or exciting new developments right here in Savannah, mall living is becoming an exciting reality. Could this be the future of housing? 📢 What do you think—what would you enjoy most about living at the mall? #MallLiving #UrbanRevitalization #HousingCrisis #MixedUseDevelopment #LiveShopPlay #HomesForAll

“As of January 2022, at least 192 U.S. malls planned to add housing to their footprint, and at least 33 had constructed apartments since the pandemic began, according to Realogic, a real estate consulting firm. At least a dozen more apartment projects are underway at malls across the country, including in California, Florida, Arizona and Texas.” “While top-tier malls continue to be in high demand, nearly 34 million square feet of U.S. mall space is vacant and off the market. Most Americans live within an hour of a mall with a high vacancy rate or low consumer traffic — or is abandoned altogether.” “Add in the nationwide housing deficit of 4.5 million homes and it makes a trend that experts say is poised to continue. For developers, adding apartments can not only fill a need, but also bring people closer to their remaining retail stores and restaurants.” - Gabrielle Fonrouge

This will be fascinating story to watch play out. I have fond memories of doing weekly shopping with my mom at the former Tom Thumb Page and eating dinner at August Moon every Sunday. Both closed many years ago as new retail was developed across the street and further north. The center remained challenged due to its layout and design with second floor retail among a loss of national brands due to bankrupcies. The developer is proposing 1,500 luxury units which will require a 12-foot residential structure at Preston and Beltline which is already an incredible busy intersection. Likely why it was formerly ripe for retailers. Seems incredibly dense and a plan that is not feasible with the current trends on rents, affordability , and impacts on surrounding neighborhoods. Dallas will have to contend with the explosive growth alongside aging office and retail corridors and make some hard decisions that may not always be popular. The City will have to navigate the complexities of providing more middle housing , opportunities for upward mobility alongside established neighborhoods. https://lnkd.in/gaJ55fU2 *person opinion and not representative of Invesco

Sunhouse Development Company, a development firm based in Cary, is developing a new retail center in Apex/west Cary. The 30,000-square-foot center will consist of three buildings, offering retail space for various tenants. Construction is expected to be complete by October 2025. The development was initially delayed due to the pandemic but is now moving forward following Duke Health’s plans to expand nearby. The growing residential and commercial development in the area, particularly west of Highway 540, is driving the need for more local retail spaces.

🔍 Project Spotlight: The Streets of Brentwood Shopping Center - This strategic investment aims to revitalize the center, enhancing its role as a community hub and lifestyle destination. Key Investors: CenterCal Properties and Heitman Location: Brentwood, CA Size: Approximately 359,000 square feet Market Trends: -Acquisition price of $75.9 million, reflecting a 3.7% decrease from the previous owner's purchase price in 2018 and a 14.8% drop from its January valuation. -Despite the downward trend in property values, the new owners see potential in the strong operating fundamentals of open-air lifestyle centers post-COVID-19.