By Lisa R. Schoolcraft – Atlanta Business Chronicle
One of metro Atlanta’s highest-profile retail projects has been delayed for at least a year.
Prospect Park, a $745 million mixed-use project in Alpharetta, won’t open until fall 2010, said Stan Thomas, CEO of Newnan-based Thomas Enterprises Inc.
Whole Foods Market Inc. wants to scale back the size of its building, and AMC Entertainment Inc. also wants to redesign, both of which will require rezoning, delaying the 85-acre luxury center at Georgia 400 and Old Milton Parkway for a year, he said.
The slumping economy has made many major retailers scale back expansion plans. Tightened credit markets have meant some developers have had trouble financing projects.
“We had 10 tenants tell us they can’t open until 2010, anyway,” Thomas said. “Some wanted to push [opening] to 2011.”
About 20 acres of Prospect Park is being built by Atlanta-based Barry Real Estate Companies Inc., adding another $300 million in office, hotel and residential space.
Natural grocer Whole Foods (Nasdaq: WFMI) had initially planned a 65,000-square-foot store, and now wants to scale back and open a 49,000-square-foot store, Thomas said.
“Whole Foods has changed and we are having to redesign their deck and size,” he said. That will push starting the construction until early spring 2009 and opening until fall 2010, he said.
AMC plans to bring its high-end movie theater concept, forcing another redesign and another trip to the zoning board, he said.
Other retailers taking space include Sur la Table, Ted’s Montana Grill, Brooks Brothers, Anthropologie and Crate and Barrel.
Prospect Park is now expected to open just a year before a rival retail project by Taubman Centers Inc., which is planning a 164-acre, $1.1 billion mixed-use project just two exits north on Ga. 400 at McFarland Road.
The Taubman project is still in the zoning process with Forsyth County, said Mark Putney, vice president of development at Taubman. A public hearing is scheduled for Nov. 6.
The unnamed project will have about 1.4 million square feet of retail space, as well as hotel, residential and office space.
Taubman expects to develop the retail space, but will either sell off the non-retail components of the project or partner with other developers for them, Putney said.
Taubman centers have anchors like Saks Fifth Avenue, Neiman Marcus and Nordstrom and retailers like Louis Vuitton,
Gucci and other high-end shops.
Once zoning is approved, Putney expects the project will take about a year to design and then two years to build, opening in 2012.
“When you think about the economy, we hope it improves by 2012,” Putney said. The entire project is expected to be complete by 2015, he said.
Prospect Park’s delay is not necessarily a bad thing for retailers or Thomas, said Ray Uttenhove, executive vice president and managing principal for Staubach Retail in Atlanta.
“Pushing back is not disappointing at this stage.”
Retailers can be more focused on the market and developers like Thomas can be more deliberate about projects, she said.
Most retailers themselves are looking toward 2010 for expansion, she said.
“With [Prospect Park], it gives retailers a chance to look at the size of their store and evaluate what they are opening,” Uttenhove said.
Thomas is hoping his luxury hotel, the 156-key Stanbury Manor, and luxury condominiums, The Stanbury Residences, will open in 2010, as well.
“Right now if I wanted to sell a residential unit, I might as well shoot myself,” he said.
Thomas has some pre-sales for the condos, but “we didn’t want to take deposits until we got to a certain point. Right now, we’re opening in October 2010.”
Thomas also has been chasing luxury retailers for Prospect Park, but has not announced any, citing confidentiality agreements.
However, Atlanta retail experts have speculated about some possibilities, including Tiffany & Co., Louis Vuitton and Neiman Marcus, all of which have discussed second stores in metro Atlanta.
Prospect Park
· Developed by Newnan-based Thomas Enterprises Inc.
· $745 million mixed-use project that will include retail, a luxury hotel, luxury residences and office space
· At Georgia 400 and Old Milton Parkway in Alpharetta
· Projected to open fall 2010, rather than fall 2009