Portions of article in St. Louis Business Journal:
Friday, October 26, 2007
St. Louis region ready for retail makeoverSt. Louis Business Journal - by Rick Desloge
The real estate players for St. Louis' shopping districts continue to get bigger, and as they do, the face of retailing in the region continues to evolve.
In September, General Growth Properties of Chicago, which operates some 200 shopping centers around the country, agreed to handle retail leasing for Mercantile Exchange, Pyramid Properties' $600 million hotel-retail-condo development downtown. General Growth already owns the Saint Louis Galleria, which it purchased in 2003.
Meanwhile, a number of existing mall properties in St. Louis County have changed hands or have been put up for sale. The biggest of the deals closed in mid-October. CBL & Associates Properties Inc. of Chattanooga, Tenn., a real estate investment trust that owns, holds interests in or manages 83 malls and open-air centers across the country, purchased four area malls from Westfield Group valued at more than $1 billion -- South County Center, West County Center, Chesterfield Mall and Mid-Rivers Mall. Westfield also has placed Crestwood Plaza up for sale, and at the same time, Crestwood city officials have sent out a request for proposals to redevelop the 47-acre site, suggesting it, too, could become an open-air site.
CBL has not announced any plans for its new properties in St. Louis. However, the company is known for building what developers call "lifestyle centers" -- shopping centers geared to upscale buyers, with a mix of chic stores in an open-air setting. They usually include restaurants and some retail space facing the outside of the center, with fountains and other amenities to give the properties a "main street" feel.
BREAK
Pyramid Properties' President John Steffen said the traffic for his mixed-use Mercantile Exchange downtown is already there and it now only needs retail tenants.
"The inception of this 'lifestyle center' was in the 1700s. It changed to a cosmopolitan center in the 1800s," Steffen said. "We don't need to build this so people will come. We need to build this for the people who are already here."
General Growth saw what was happening in downtown St. Louis and contacted Pyramid, Steffen said.
Mark Hunter, vice president of leasing and client services with General Growth, said he expects St. Louis' downtown will attract a different mix of stores compared to other metro areas -- one that caters to business people working downtown, a sports crowd, and downtown's new residents -- younger people moving into new condos and apartments, and older couples who have left their single-family homes.
"What works in Dallas and New York City isn't necessarily going to work in St. Louis," Hunter said. Compared to those cities, St. Louis' professional sports teams are based downtown, so there will be a retail element catering to that group. "We're seeing a resurgence of different age groups, people just out of college and older people," Hunter said. As the residential population increases and office population remains steady, downtown will be able to support more retail -- particularly clothing and home furnishing stores.
Hunter said it's too early to identify possible retailers for the Mercantile Exchange, but General Growth works with dozens of national retailers including Banana Republic, Eddie Bauer, Gap, Ann Taylor, Victoria's Secret, Apple Computer, Sharper Image, Williams-Sonoma, Cheesecake Factory and Crate & Barrel. When Pyramid announced plans for the project, Steffen said then he envisioned a concentrated area of upscale, street-level retail that would include fine dining and entertainment.
Link to article:
http://www.bizjournals.com/stlouis/stor ... 00^1540955