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Outmoded malls make way for new uses, plus 8 developments to watch

July 1, 2021

Developers are demolishing outdated malls around the country to make way for new open-air centers, mixed-use complexes and even nonretail uses. NorthPoint Development is bulldozing one of Detroit’s oldest enclosed malls, the 640,000-square-foot Eastland Center in Harper Woods, Michigan, to build e-commerce fulfillment space. Meanwhile, Zdi Inc. and investor Michael Heslov plan to demolish the former East Hills Mall in Bakersfield, California, after acquiring the property from Retail Equities LLC. The buyers plan a mixed-use complex that could include retail, hospitality, housing and more. And the St. Louis County Port Authority is tearing down the 1.2 million-square-foot Jamestown Mall to make way for mixed-use development. The 145-acre mall closed in 2014 and is owned by the county. Plans to convert the site to a logistics center fell through when residents objected. Revised plans call for office, residential and retail.

Brookfield Properties wants to add a 162,000-square-foot Costco in Newark, California, at the 1.1 million-square-foot NewPark Mall. It would replace the former Burlington, JCPenney and Mervyn’s stores. Newark City Council will consider the project in July. If approved, it could be completed by late 2022. Brookfield also plans to build 1,500 residential units on the mall’s parking lots in five phases over about eight years and will convert the former Sears into offices and restaurants.

CBL and Vision Hospitality Group opened a 135-room Aloft Hotel in the former Sears space at Hamilton Place in Chattanooga, Tennessee. CBL purchased the Sears in 2017 via a sale-leaseback that allowed CBL to control the stores’ closure. The Cheesecake Factory opened there in November 2018, and Dave & Busters and Dick’s Sporting Goods joined in 2020. Future phases of redevelopment will include office, new retail and more restaurants.

Swerdlow Group broke ground on the 1.4 million-square-foot, mixed-use Sawyer’s Walk in Miami’s Overtown. The project will include 250,000 square feet of retail below 578 seniors housing apartments. Swerdlow is collaborating with the Southeast Overtown/Park West Community Redevelopment Agency on the $300 million project. Construction is scheduled for completion in 2023. A 25,000-square-foot Aldi and a 50,000-square-foot Target will anchor the center. The tenant lineup also will include Burlington, Five Below and Ross Dress for Less.

WSDevelopment plans to add a 39,000-square-foot Kohl’s and an unnamed, 6,000-square-foot restaurant at the 192,198-square-foot Center at Lenox, in Lenox, Massachusetts. The new space will open in late 2022. CVS, Market 32 and Marshalls are key tenants at the center.

Deacon Development wants to replace a vacant former Nordstrom in downtown Salem, Oregon, with a five-level property apartment building above street-level restaurant and retail space. Nordstrom closed that store in 2018. The project is scheduled for completion by April 2023.

St. Louis-based supermarket chain Dierbergs wants $17 million in tax increment financing and Community Improvement District sales tax financing for a retail center to rise on half of the former Crestwood Plaza mall site. Dierbergs plans to spend $67 million on the project. An 81-home subdivision from McBride Homes will take up the other half.

Guerrier Development is scouting sites around Nashville for Storyville Gardens, a 100-acre educational amusement park that will focus on cultural elements of Africa, the Americas, Asia and Europe. Storyland Studios has worked on projects for Disney, Legoland, Lucasfilm, Marvel and Universal and will design the park. Storyville Gardens will offer rides and more than 220,000 square feet of retail, dining and entertainment space. It would be Nashville’s first theme park since Opryland closed in 1997.

The abandoned, two-level Mid-Town Shopping Center in Madawaska, Maine, will become a Fish River Rural Health center. Previous owners had donated the site to the town in 2018, and the town has donated it to Fish River as part of its plan to revitalize the area. Seritage Growth Properties owns an abandoned Kmart in the same parking lot.

By Brannon Boswell

Executive Editor, Commerce + Communities Today

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