Columbus Village at Town Center (Cancelled)

[HRVA]

Based on the site map in their marketing it does appear to be a new 4,500 sq ft building fronting the intersection. It's disappointing that it appears to just be one floor but it doesn't take up much space and there will be plenty to build around it. The B&N space is still being marketed has having a LOI but now also has a smaller piece subdivided and marketed as available space. 

[metalman]

Can you post a pick of the siteplan?

[HRVA]

http://www.divaris.com/properties/?propertyId=town-center-retail

It's in the brochure under the  documents tab. It's updated every couple of weeks. 

[HRVA]

Another updated site map. 

[urbanvb]

It appears B&N will be shrinking it's store which is not surprising as most larger retailers are either shrinking or just disappearing altogether. What is more concerning is whether they've shelved plans to redevelop this area. 

Edited June 30, 2018 by urbanvb

[urbanlife]

On 6/30/2018 at 5:02 AM, urbanvb said:

It appears B&N will be shrinking it's store which is not surprising as most larger retailers are either shrinking or just disappearing altogether. What is more concerning is whether they've shelved plans to redevelop this area. 

I doubt they are shelving it for redevelopment, they are just holding onto it for future use....in other words, don't plan on towers and urban blocks on this stretch any time soon. Besides, it looked like the first phase of redeveloping this stretch was gonna be where the theater is once the new one opens. The B&N portion will probably be the last portion to be redeveloped.

[vdogg]

Of note, Armada Hoffler included this tidbit in it's earnings call today.

"During the quarter ended June 30, 2018, the Company leased 150,000 square feet including a 10-year lease with Shake Shack, leading the way to the re-development of the Columbus Village shopping center in the Town Center of Virginia Beach."

A search on Shake Shack pulls up the following information.

"Shake Shack is an American fast food restaurant chain based in New York City. It started out as a hot dog cart inside Madison Square Park in 2001, and its popularity steadily grew."

Needless to say, I think we know who Madison Park is now. I'll reserve judgement until I see what AH has planned for the rest of Columbus Village. I'll admit though, a 10 year lease for what is essentially a big box retailer gives me a bit of heartburn...

[Urbanlooker]

There's a Shake shack that I've been to in the Domain in Austin, it's basically just a burger joint that's ever so slightly scaled up. It's not bad but I don't think it's all that special. 

[baobabs727]

I've been to the Shake Shack in Pentagon City, Tysons and Buckhead. Those names should impress upon u that this is a big get. Neither Raleigh nor Richmond  has one, & Charlotte just got one. Having said that, the food quality is better than 5 Guys but even more $$. If you go for a meal including bev/shake, fries and double cheeseburger, ur gonna be pushing $17-$20.  And no service. But IMHO a far bigger development than Cantina Laredo. Shake Shack has a cult following with huge opening days/months/years ...while nobody has ever heard of CL.

But wait. What "big box?" 150k contiguous? Where? U sure they didn't mean 150k total incl. of maybe $3-4k for SS?

Edited July 31, 2018 by baobabs727

[vdogg]

You're right, it was 150k total. And this has alleviated some of my concerns. Looks like we should have some more details within the next year.

Lou Haddad

"Sure. There's a lot of moving pieces surrounding Town Center and the redevelopment of the two shopping centers we purchase, which our Columbus Village. The first piece that has landed is the Shake Shack that we've mentioned and according to the Millennials in our office that really means Town Center has arrived. So we'll see if that ends up being the case, but that section of Columbus Village will probably be the only section that remains more of a traditional shopping center, which is great for the project because we do have some tenants that want to be a part of Town Center but need a parking field out front.

So that at least three or four acres involved there with an out parcel building with Shake Shack will end up staying in the traditional sense. The other pieces of Columbus Village are like I say there are a lot of wheels in motion; all the tenants that are there want to stay in new facilities. The city would like us to see go vertical, all those things are moving around, and I'm not quite sure the time frame. It could come together very quickly, or it also could be another year. But in any case it's been a great purchase for us. And cash flow is going to continue to increase irrespective of development activity."

[baobabs727]

Excellent, thx! 

[Up2313]

Meh. So I guess that means the barns and nobles section will be staying the same? Is this just temporary?

18 hours ago, vdogg said:

that section of Columbus Village will probably be the only section that remains more of a traditional shopping center

 

Edited August 1, 2018 by Up2313

[vdogg]

Well, it'll stay that way for at least the next 10 years. The rest of the site should start redevelopment within the next year or so.

[urbanvb]

Except it appears the size of the store will be diminished making way for other retail. I go in B&N periodically and their store could use a facelift. It’s pretty worn and dated. Perhaps it’ll have some freshening during this time.

Edited August 1, 2018 by urbanvb

[baobabs727]

Well...I think this is a watershed development. Mr. Haddad's Millenial employees are simply correct. SS has really never been associated with secondary/tertiary markets. Folks are clamoring for NYC-based SS all over the county. There's a certain cache and panache attached to the name, the arrival of which in a particular metro signifies trendiness/hipness. You may agree or disagree re: the merits of such a claim, but as we all know well, perception is everything. Especially in sales/marketing. SS will definitely elevate TC's profile.

 

 

Edited August 1, 2018 by baobabs727

[BFG]

This seems like it could be a nice fit for downtown Norfolk as well, based on the description. 

[baobabs727]

Yes, agreed. Perhaps at the "3rd anchor" pad development adjacent to MacArthur Center. 

As for the 3-4 acre site at Columbus remaining a strip mall, I guess the tenants there currently believe that they would not do well absent a traditional large, front parking lot. Obviously A/H wants to keep them there because they are a  people draw, they diversify the tenant mix (they offer more affordable goods) and they are deep-pocketed national players who make long-term lease commitments. Of course it all comes down to a numbers game, and the math is better for A/H at present than it would be if they tore down that part of the strip and presumably went vertical whilst losing two or more of those tenants. At least that's what they want investors to believe. 

Edited August 2, 2018 by baobabs727

[HRVA]

Shake Shack slams the door on any major development at that corner for decades. There’s likely miltiple 5-year options (I’d guess at least 4) built into the lease agreement. It gives Town Center another Taco Bell situation. I’ve been pessimistic about the pace of building out Columbus Village but I still felt 10-15 years was feasible. Not anymore…

[baobabs727]

Well, it certainly doesn't necessarily preclude a new build-out for them at some point somewhere very close by in an equally prominent location within that block when that 3-4 acre portion of the center is ultimately redeveloped, vertically...perhaps in stages. SS could move to the redeveloped portion and then the existing store could be razed and that corner site redeveloped. That move would minimize business interruption. In 20 years, the store will be functionally obsolete anyway.

I trust A/H to have done their due diligence on this. I would surmise that they do not believe that there is adequate market demand/support for the redevelopment of the entire site at this time. So they'll gladly keep collecting the rent until that calculus changes. Remember also, this is a publicly-traded company, and as such they must answer to their stockholding investors. Notice Mr. Haddad stressed that Columbus Ctr will still be accretive to earnings even absent redevelopment. Bingo.

Edited August 2, 2018 by baobabs727

[vdogg]

https://www.13newsnow.com/mobile/article/news/local/mycity/virginia-beach/shake-shack-coming-to-virginia-beach-town-center/291-579215491?utm_campaign=trueAnthem%3A+Trending+Content&utm_content=5b61a7d29ac56400063f7047&utm_medium=trueAnthem&utm_source=facebook

Looks like we'll have details at the end of the year.

“Shake Shack is the first tenant to commit to lease space in what will ultimately be a redeveloped Columbus Village shopping center at the Town Center of Virginia Beach. We are in discussions with a number of other tenants, inclusive of the existing occupants, and expect to finalize plans for enhancing the center later this year.”

 

[HRVA]

A preliminary concept plan has been filed with the city for the “Renovation/Redevelopment of the Barnes & Noble Bookstore.”  Additionally, the leasing plan shows there are LOIs for 2 of the 4 spaces that are being carved out of B&N. That parking lot is going to be lots of fun during construction & beyond…

[vdogg]

I hope they at least try to give that area a more urban feel. Any urban development should’ve been flush with Va. Beach blvd. This is so backwards.

[vdogg]

Kimley Horn seems to put out some good designs though, so maybe there’s some ray of hope.

[vdogg]

Site plan for “Columbus Village Streetscape” is currently working it’s way through planning. Not much detail but I presume this is for the establishment of a more traditional street grid in Columbus Village to mirror Town Center.

[HRVA]

There’s also funding for it in the Econ Dev agenda but I think it’s only for improving along the Boulevard and Constitution with the construction of Shake Shack and downsizing of B&N.