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Friday, March 01, 2002

Duke enters race for upscale retail


Deerfield is site of 'lifestyle center'

By Ken Alltucker
The Cincinnati Enquirer

        Greater Cincinnati's largest developer plans to be the first to bring upscale shopping to the northern suburbs.

        Duke Realty Corp. wants to convert a 40-acre parcel off Mason-Montgomery Road once reserved for a Nordstrom store into a batch of trendy shops, restaurants and entertainment.

map
        The Indianapolis-based firm is the latest to gun for a suburban open-air mall in a war that so far has featured more boast and bluff than results.

        Three developers have chatted up plans for upscale malls along Interstate 75 in West Chester, yet none has announced stores for the ambitious projects.

        Duke officials say Deerfield Township is the best site because it's farther from existing malls and closer to wealthier customers and office buildings along I-71.

        “We have several things going for us that the competitors on I-75 don't have,” said Greg Malone, who oversees retail operations for Duke in Cincinnati.

        Duke is negotiating with Rookwood Commons developer Anderson Real Estate to build the open-air mall. The financing, size and tenant mix are still being discussed, Mr. Malone said.

        Duke owns the land; Nordstrom backed out of a deal in December 2000 to anchor an upscale mall there. At the time, Seattle-based Nordstrom also ditched plans to build a downtown store at Fifth and Race streets.

        Deerfield Township officials are aware of the intense competition for retail projects in fast-growing Butler and Warren counties. “At this point, I don't get excited one way or another,” Trustee Bill Morand said. “There is so much competition that projects seem to appear and disappear.”

        Open-air malls, also known as lifestyle centers, are being built across the country.

        The open-air malls planned for West Chester Township include:

        • Columbus-based Continental Real Estate's Streets of West Chester at the southeast corner of Union Centre Boulevard and Interstate 75. Though no tenants have been announced, Continental envisions a 425,000-square-foot mix of luxury shops, a bookstore, restaurants and a movie theater. Some homes and apartments could be built at the 103-acre site, too.

        • Atlanta-based Cousins Properties staked out a 40-acre site on the other side of I-75 at Union Centre and Muhlhauser Road. Cousins expects the $40 million, horseshoe-shaped center to include high-end shops and restaurants.

        • Steiner & Associates, developer of Newport on the Levee, has entered the fray with plans for upscale shops at the northwest corner of Cincinnati-Dayton Road and Interstate 75.

        Plans for a fourth retail development at the former Voice of America site have changed. Developer Midland Atlantic's vision for an open-air mall there crashed when proposed anchor Jacobsons Stores Inc. filed for bankruptcy in January.

        Midland Atlantic has shifted plans but hasn't announced what types of tenants it seeks.

        The competition is so intense, in part, because the developers are chasing many of the same retailers, according to Amber McDonald, a retail specialist with Grubb & Ellis West Shell Commercial.

        Ms. McDonald said it's difficult to tell which project will be the first to be built.

        “It appears very real what (Continental is) doing,” Ms. McDonald said. “But it only takes two signatures (of anchor tenants) to get off the ground.”

        Mr. Malone said Duke and Anderson Real Estate could break ground later this year.

        Mr. Malone thinks the West Chester contenders have a tougher challenge because of proximity to Tri-County Mall and the revitalized Forest Fair Mall.

        The nearest existing mall to Duke's Deerfield site is Kenwood Towne Centre.

        “I don't think there will be two (open-air) malls in the near term,” Mr. Malone said. “The tenants will ultimately determine ... which site is the best.”

       



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