Alamo City in spotlight at national retail conferenceBy Tricia Lynn Silva
San Antonio Business Journal
Updated: 8:00 p.m. ET May 29, 2005LAS VEGAS --
Developers, retailers and brokers from San Antonio have always flocked to Las Vegas for the annual Spring Convention that is sponsored by New York-based industry organization the International Council of Shopping Centers (ICSC). But this year's event shined an ever-brighter spotlight on the Alamo City -- and the slate of high-profile projects in the works for the city.
What a difference a year makes. For the third time, The Shops at La Cantera was on display during the Spring Convention. In the past, however, it was Columbia, Md.-based The Rouse Co. that was showing off the project -- which will initially bring 1.3 million square feet of shopping space to the Loop 1604/Interstate Highway 10 intersection in Northwest San Antonio.
At this year's conference, the project took center stage at the booth for General Growth Properties (GGP), the Chicago-based real estate investment trust that recently purchased Rouse. The Shops was the developer's featured project, says Bob Rubenkoning, who is vice president and communications director for GGP.
Also under development at the intersection of Interstate 10 and Loop 1604 is The Rim, a 1.5 million-square-foot lifestyle center being developed by Atlanta-based Thomas Enterprises. This is the second year that Thomas has showcased The Rim. But last year, all the developer could unveil was the potential for a mixed-use project that would ultimately span as much as 700 acres.
And despite continued buzz over the past year about a major outdoors sports retailer coming to The Rim, it was only at this year's ICSC conference that the retailer's name could be spoken: Bass Pro Outdoor World -- to be developed by Springfield, Mo.-based Bass Pro Shops.
A year ago, many real estate insiders in San Antonio were still wondering what would become of the site that was once Central Park Mall. This year, local developer Mark Granados was using his booth to showcase his plans for the site -- a project known as Park North Plaza.
The place to be
"There are quite a few projects here from San Antonio," says Granados, who is the principal of Hill-Granados Retail Partners LP.
As for his own project, Granados says that he is about 90 to 120 days away from announcing the first major tenants for Park North, which is slated to bring 1.2 million square feet of retail to the site of the former Central Park Mall at Loop 410 and San Pedro Avenue in North Central San Antonio.
Initial plans call for a movie theater that will be built on top of a five-story garage in the middle of the project. Two discount retailers have also approved the site for new stores.
While Granados is not mentioning specifics at this point, the talk has been that the movie theater tenant will be Kansas City, Mo.-based AMC Entertainment Inc. As for the discounters, Bentonville, Ark.-based Wal-Mart Corp. and Hoffman Estates, Ill.-based Sears Corp. are names that continue to come up -- with the latter expected to build a Sears Grand store.
"I will not confirm or deny anything at this point," says Granados, when asked about these particular tenants. "I will say that we are working on long-term plans for Sears and Wal-Mart on the site."
Should Sears Grand take its place within the project, Park North could be one of the first retail projects to bring this superstore concept to San Antonio. Ranging in size from 151,000 to 210,000 square feet, the Sears Grand stores sell everything from refrigerators to milk.
The trick has not been to find interested tenants, as Park North has caught the eyes of several retailers, banks, institutional investors, even other developers, Granados says. The challenge, he adds, has been to come up with the master plan for how all of the pieces of the project will fit together.
As for the attention the project has garnered, he says he never expected anything less.
"Nothing compares to it," says Granados of Park North. "This is the place to be."
The same could be said for San Antonio in general, according to retail industry officials.
"San Antonio has gotten people's attention," says Jerry Anderson of Thomas Enterprises. And while he would love to give all of the credit to his own project, The Rim, Anderson knows that there is a lot more to this success story.
His own project, however, has netted some other tenants to join Bass Pro -- including new stores by Plano-based J.C. Penney Co. Inc. and Wilkesboro, N.C.-based Lowe's. Right in the middle of the project, Thomas Enterprises is planning to develop a hotel.
"There are so many neat things going on (in San Antonio)," Anderson says. "It's on people's radar screens."
"Our retail and restaurant partners are thrilled about the growth in San Antonio," adds Rubenkoning. "And the retailers make us excited."
Competitive synergy
When the first phase of The Shops opens this September, it will bring with it 30 stores that will be new to the local retail landscape. Besides the jeweler with its signature blue box (Tiffany's), noted fashion retailers like Hugo Boss, Lacoste and Tommy Bahama are also coming to town. To date, the first phase of The Shops, a total of 1 million square feet, is about 93 percent occupied, Rubenkoning says.
And GGP is already hard at work marketing phase two of the center -- 300,000 square feet that will include another new movie theater by AMC and a mix of retail and office tenants.
GGP is also in the midst of a multimillion-dollar renovation of North Star Mall at Loop 410 and McCullough Avenue -- further evidence of the corporation's bullish stance on San Antonio, Rubenkoning says.
"These projects create synergy for our partners," Rubenkoning adds. "Between the two, we can create a competitive edge for our retailers and restaurants."
And further surprises are still in store for the Alamo City.
In February, Cincinnati-based Federated Department Stores Inc. and The May Department Stores Co., which is headquartered in St. Louis, announced plans to merge. As part of the deal, Federated has stated that it will likely convert its existing May's department store brands -- which include Foley's -- into its Macy's brand.
But what happens when you have both a Foley's and a Macy's department store in the same shopping center, like at North Star Mall?
Rubenkoning answers coyly, "Federated thinks highly of North Star. I expect we'll see another of its brands coming to the market."