By Lindsay Sport, Shopping Center Business
With questions lingering about the fate of the U.S. economy, many developers and leasing agents have experienced a hold in their projects, as the futures of many companies and developments have become uncertain. “Because capital markets are so tight, people that don’t have the money or the deals done or leases signed are really backing up and delaying their projects if possible,” explains Jim Baker, CEO of SouthPoint Retail Partners. “So, what’s happening is that all the developments are sort of stymied and stopped.”
This is not the case with Baker’s latest project, SouthPoint, a super regional open-air center developed by South Point Partners in McDonough, Georgia. Boasting approximately 600,000 square feet of retail and restaurant space, the development is anchored by a 104,430-square-foot JC Penney and an 88,793-square-foot Kohl’s, both of which are currently in operation. With additional committed retailers such as Toys ‘R’ Us/Babies ‘R’ Us, Hobby Lobby, Havertys Furniture and Shoe Carnival, SouthPoint has all of its co-tenancies met, and is eager to move forward.
“We are very fortunate to be one of the few people that are moving forward,” Baker says. ” You hear a lot about pull backs and stops and hovering, but we’ve really had pretty good activity.”
With the help of the Staubach Retail leasing team in Atlanta, comprised of Liz Whiteside, Diann Roberts, Jean Dean and Robert Wilshusen, leasing remains progressive. Baker attributes the constant action with the unstable economy. “You have retailers out there who want to open new stores, but finding developers with both the money and the sites is becoming harder and harder,” Baker notes. “We are actually in a unique position, where we have retailers approaching us.” Retailer Party City even went from initial interest in a 10,000-square-foot space, to the final leasing of a 13,500-square-foot space.
Besides hard work from both the developer and leasing team, Jim Baker attributes the success of SouthPoint to a surprising key factor – luck. When Baker purchased the land 20 years ago, there was no way to foresee the changes that would occur in Henry County in the coming years. With the installation of two major water reservoirs and a number of newly developed neighborhoods and schools, Henry County is quickly becoming a bustling suburb 25 miles south of Atlanta. It was the seventh fastest growing county in the U.S. from 2000-2005, and McDonough itself has173,000 residents within its city limits.
And with the completion of Highway 20, a $50 million expressway, along with Old Highway 81 bordering the site, the center’s location immediately off of Interstate 75 makes it extremely accessible to the well under-served citizens of Henry County. A testament to the location, the SouthPoint JC Penney is operating in the top 10 of the retailer’s 22 stores that were opened since last October. The center will also make a positive impact on the surrounding community with Henry County’s first full-service hotel, a 110-room Hilton Garden Inn, expected to open next spring.
SouthPoint is scheduled be in full operation by August 2009, but the center’s future is far from complete. The current footprint encompasses only 70 acres of the 200-acre site, leaving plenty of room for expansion. With most of the site’s current tenants leaning more towards home-furnishings and family-oriented retailers, Baker says the focus on future development will lie mainly in fashion-oriented retailers. Baker also said that future phases would bring more of a lifestyle concept to the center, instead of SouthPoint’s current big box structure. Whatever the changes, Baker says he is sure the center’s future is strong. “We have a nice runway so people can get to us, we are in a good position and I think it’s just going to continue to get better,” Baker says.