La Palmera Emerges As Model For 21st Century Mall Transformation
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- Published on Wednesday, 07 July 2010 10:46
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Nellie Simpson 817.810.5307
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LA PALMERA EMERGES AS MODEL FOR 21st CENTURY MALL TRANSFORMATION
Design, amenities, LEED certification, tax-free service, public-private partnership and more
CORPUS CHRISTI, Texas (July 7, 2010)– After two years of redesign and construction, La Palmera has emerged as a “model” for mall revitalization projects. A June 25 ribbon cutting and three-day Grand Opening event marked the end of the 1-million-square-foot regional mall’s $50 million transformation and the beginning of its new life as a cutting edge shopping and leisure destination and local economic development machine.
“We took a distressed 1970s mall and have literally transformed it into something spectacular,” said La Palmera General Manager Fred Walters. “We’ve added a great mix of new tenants and dining options and numerous amenities such as free Wi-Fi, expanded Concierge service, valet parking, and community programs, all of which greatly improve the guest experience.”
In 2008, the City of Corpus Christi passed a $19 million tax increment financing agreement to assist with the development of La Palmera. In this structured public-private partnership, a portion of the incremental total revenue created by the development is used to finance the public improvements, which made the project economics feasible. Both theCity and developer are hoping the new La Palmera and its new merchants will prevent leakage of sales to San Antonio and Houston, resulting in increased sales and sales tax.
"We are blessed Trademark has invested in our city,” said Corpus Christi Mayor Joe Adame. “They have been a great partner in delivering on their promises above our expectations. Their work at La Palmera is having a very positive impact on our community. It is a real community showplace that is the buzz of the region."
Since Trademark Property and partner Institutional Mall Investors, LLC, acquired the mall in July 2008, 21 new leases have been signed totaling 64,213 square feet as well as 28 renewals and relocations totaling 50,902 square feet, for a total of 115,115 square feet. Occupancy has grown during this period from 78% to 87% occupied and leased space.
“We worked diligently to provide just the right mix of new tenants,” said Walters. “Specialty shops such as Zumiez, Vans, Charming Charlie and the Aveda Institute Corpus Christi; upscale lines such as Coach, and Rolex being added to Reeds Jewelers; plus a variety of new food court and snack options as well as popular sit-down restaurants such as Grimaldi’s Pizzeria and P. F. Chang’s.
“Our anchor stores have also taken this opportunity to undergo their own renovations and expansions. Macy’s completely remodeled and expanded by 18,000 feet, Dillard’s remodeled its first floor adding several new lines including Bobbi Brown, Kiehl’s, Philosophy, Smashbox, Paula Dorf and Studio Gear and is currently undergoing even more changes along with JCPenney, which recently added a Sephora Inside JCPenney location.”
Dillard’s Chief Executive Officer, William Dillard, II, added, “We are truly happy with the dramatic transformation at La Palmera and we are excited to be a part of it. Trademark’s visionary achievement at La Palmera is mall revitalization done right. This premier development provides South Texas residents and visitors a unique experience in shopping, dining and entertainment.”
Part of the promised benefit to Corpus Christi was to also help stimulate the local economy and create new jobs. The mall’s new tenants, including Grimaldi’s Pizzeria, P.F. Chang’s and Ulta opening this year, have added an estimated 361 new jobs with more than 175 of those full-time along with over 1,000 construction related jobs over the past 18 months.
The Corpus Christi Convention and Visitors Bureau is also counting on La Palmera to be a significant magnet for tourism. “The Corpus Christi Convention and Visitors Bureau welcomes La Palmera and appreciates their support in our new campaign targeting the Rio Grande Valley and northern Mexico,” said Corpus Christi Convention and Visitors Bureau CEO Keith Arnold. “The response has been positive and powerful and a tribute to the potential the shopping center brings to our area and our 7.2 million annual visitors.”
Renovation highlights include: a 600-seat food court with a palm court dining patio and 4,500-gallon feature aquarium; one-of-a-kind ocean-themed children's play area; revamped Center Court featuring a coffee bar and 20-foot-diameter fountain; a new outdoor main entrance featuring new stores and restaurants, interactive pop jet fountains, and valet service; a new community room; the incorporation of expanded natural lighting, as well as new tile, carpet and furniture upgrades in public seating areas throughout the mall.
“We have maintained our commitment to this project, even when economic events would seemingly dictate otherwise,” said Trademark CEO Terry Montesi. “There’s virtually nothing being built right now, which has helped La Palmera garner national attention. This project, however, is an example of one that was needed and has a pulse on the community. We’re giving the area exactly what they wanted.”
Montesi says the company will capitalize on their La Palmera success as they work to revitalize two other mall properties, one in Santa Fe, New Mexico, and one in Westland, Michigan, just outside of Detroit, which were recently acquired into Trademark’s operating portfolio in partnership with a private equity firm.
“We will draw upon this project as we look at other mall re-positioning in the future as we believe redevelopment will be quite active in this cycle given the current supply-demand dynamics,” said Montesi. “We have been able to create an environment that is more than a mall: it is a leisure destination. You can shop, certainly, but you can also just come for a night out, meet a friend for coffee, bring the kids to play or take advantage of the many programs and events that we are providing for the community.”
La Palmera can now claim a number of “firsts”:
- The design, construction and new ongoing operation of La Palmera was carefully planned to incorporate as many “green” elements as possible. As a result of its careful planning, La Palmera is pre-certified LEED-Silver by the U.S. Green Building Council, and will be the first enclosed mall in the U.S. to receive the prestigious designation.
- Texas continues to grow as a U.S. shopping destination with $2.3 billion in sales annually from Mexican Nationals. La Palmera will soon provide the first Tax Refund Visitor Center in the Coastal Bend region. The venture, in partnership with TaxFree Shopping, Ltd., will cater to the international visitors coming to the Corpus Christi area processing paperwork for them to receive their purchases tax-free.
- La Palmera is also working with tenants on cutting edge ideas, constructing a 70-foot wind turbine at the back of the mall to generate power for the new Aveda Institute Corpus Christi. In keeping with its company’s environmental policies, the Institute will also have treadmills and elliptical machines for mall patrons to use, which will also help generate power.
For more information on La Palmera, go to lapalmera.com or call (361) 991-5718.
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