Possible hotel/convention center and shopping mall coming to I-35.

[BricktownGuy]

Apparently it is Nordstrom's. John you are correct Belk is going in the new portion of the Spring Creek development.

Can you please tell us where you read or heard its Nordstrom's??

[jbrown84]

My family that lives in Wichita has heard that a Warren Theatre is coming to Edmond, most likely in this development.

[TheImmortal]

I am wondering if this development wont be similar to Southlake Town Square in the Dallas Metroplex. My grandparents live right near there and it is a wonderful development. I was there at Thanksgiving and they added a Harkins Theater and a Hilton Hotel and Convention Center. All the same this will be a great development, and us UCO kids sure will be happy to not have to drive over to Memorial for a quality cinema experience. Here is the site for whoever wants to check it out: Southlake Town Square

[tnajk]

Moer information on this project....

NewsOK.com | Powered by The Oklahoman and NEWS 9

[Pete]

Simon group signs on for I-35 and Covell project
by Kelley Chambers
The Journal Record
1/12/2007

EDMOND – Plans have been in place for some time to build a shopping center at Interstate 35 and Covell Road; however, on Thursday the developers announced that a major retail development company had signed on to the project.

Michael Galiga, with Edmond-based As One Group said the Simon Property Group will work in a joint venture with the Covell I-35 Development group to build the 1.2 million-square–foot open-air retail lifestyle center. Covell I-35 includes Little Rock, Ark.-based Clary Development.

Galiga said the deal with Simon Property was completed earlier this week.

Indianapolis-based Simon Property, which owns Penn Square Mall in Oklahoma City, is one of the country’s largest developers and managers of retail properties. Galiga said the group did not go out seeking a company such as Simon to join in on the project.

“Simon approached us a few months ago,” he said. “We didn’t approach them. Of course when they called us we were flattered. We met with them and we liked them and they liked us.”

Plans for the project call for a retail and office complex at I-35 and Covell at a cost of more than $400 million.

Galiga said the lifestyle shopping center will be on the northwest corner while the southwest corner will also have more than 500,000 square feet for big-box retail stores.

An office park and medical offices are tentatively planned for the northeast corner.

In November, hotel and conference center developer John Q. Hammons signed a letter of intent to build a hotel and conference center at the I-35 and Covell site.

Galiga said he could not yet name department stores that may locate in the center but said the developers have received verbal commitments.

He also said there is the indication that there will be a theater as part of the development.

Galiga said the developers hope to begin construction on the shopping center this fall.

The Associated Press contributed to this story.

[jbrown84]

$400 Million?? Good lord. Great news that Simon is involved.

[brianinok]

This is great news that Simon is now involved. They only do quality developments. And I think this all but confirms what most of us were hoping-- that this will be an upscale development (the lifestyle center part, not necessarily the out-parcel part). The article states that the lifestyle center will be 1.2 million sq. ft. It also says the big-box part will be 500,000 sq. ft. I don't know if that means it will have either 700,000 or 1.2 million for mall-type stores, but either way is excellent.

Simon has great pull with retailers like Nordstrom and Saks, and has a history of recruiting stores like these into markets they are not currently in. Simon signing onto this deal I think solidifies its chances of getting upscale stores like this. If they can't do, I don't think it will be done in the Oklahoma City area for a long time.

[Luke]

Great news!

[jbrown84]

I bet they'll be using this as on opportunity to bring in some stores that they would have liked to have at Penn if there were room to expand. Department stores especially.

Here's a description of their newest lifestyle center, The Domain in Austin:

The Domain, opening in March 2007, will feature 700,000 square feet of luxury fashion and restaurant space. It will cater to Austin's affluent population with high-end retailers that include Barneys CO-OP, CALYPSO, Tiffany & Co., the city's first Neiman Marcus and restaurants like Jasper's and Kona Grill.

The 57-acre first phase of this mixed-use project will include an upscale Main Street center anchored by Macy's and Neiman Marcus, eight first-class restaurants, 75,000 square feet of Class A office space, 400 high-end apartments and a full-service hotel.


So that gives us a good idea.

[jbrown84]

Some stores in other Simon lifestyle centers:

REI
Wild Oats
Dick's Sporting Goods
Whole Foods
The Container Store
Crate & Barrel
Neimen Marcus
Macy's

[Karried]

Simon has such stringent guidelines for contractors that perform work at their facilities. They have a reputation for quality control ... if a contractor exceeds the noise limit or does anything out of the guidelines of the contract... very heavy fines imposed.

Not to mention, their insurance requirements are more than double or triple what other similar sites demand.. (our company has done some work in Penn Square) .. But, I like it...the end result is very commendable.

[writerranger]

Simon has such stringent guidelines for contractors that perform work at their facilities. They have a reputation for quality control ... if a contractor exceeds the noise limit or does anything out of the guidelines of the contract... very heavy fines imposed.

Not to mention, their insurance requirements are more than double or triple what other similar sites demand.. (our company has done some work in Penn Square) .. But, I like it...the end result is very commendable.

One only has to step into the Houston Galleria to see the quality of a Simon property; and of course, they built and developed The Mall of America in Minneapolis. They also manage the largest mall in the United States today, The King of Prussia Mall near Philly. They also were one of Fortune Magazine's 2006 "Most Admired Companies." Top notch company - one of the best of the best. We know now, this will be a serious development that will shake up retail in Edmond and North OKC.

----------------

[Pete]

Simon is a great developer but I think seling that location -- on the very far outskirts of the Metro -- is going to be a tough one for first-time retailers looking at our market.

If you were NM or Crate & Barrel, would you chose that location for your entry into OKC?

I used to represent retail tenants in the OKC marketplace and I can tell you they put a lot of stock in the immediate demographics -- and there just isn't any sort of serious population in that area yet.

Think about how far that is from the majority of the population in OKC... I think this project is going to take a long time to develop, similar to the Quail Springs area.

[jbrown84]

It's an interesting point, Malibu, however if this development has a large concentration of upscale shopping including many stores (and especially anchors) that are nowhere else in the market, people will come from all over. People in Tulsa and even Wichita will come here instead of driving all the way to Dallas.

[Pete]

Yes, but those stores also located in areas of Dallas that make it easy for locals.

Some stores will draw from a long distance but you can't rely on that primarily. Also, all it takes is one of your key competitors to open a better location and you are in a world of hurt.


Believe me, these retailers are sophisticated when it comes to chosing locations. Can you imagine them flying into OKC, driving past downtown and north OKC, and past almost all of Edmond to an area with no development and very little housing? And then have someone explain that there is virtually nothing on the other side?

You'd be asking why you aren't looking at locations in the middle of populated areas or at least an established retail area.

[jbrown84]

Your argument makes sense, but would Simon, of all developers really sign on for this if they hadn't done their research? Clearly they feel otherwise. There's no dense housing there, yes, but that site is surrounded by high income neighborhoods. 73034 is the highest or second highest average income zip code in OKC. If stores like Ann Taylor, Chico, Jos. A Bank, White House l Black Market, and Talbots are not afraid to locate in Edmond (with 2nd locations), then why should similar stores be afraid to locate their only location just a few miles away in a rapidly growing area and right on the interstate?

[Pete]

They may have signed on just for the future upside. It's probably cheap for them to get involved at this stage.

In addition to malls and lifestyle centers, they also do tons of outlet developments, especially on the outskirts of cities. Perhaps that's what they have in mind.

[jbrown84]

So you think they are counting on this plan falling through and just building an outlet mall instead?

[Pete]

No, just that they may have their own ideas on how to best develop that property OR may help develop something small and hold the remainder for the long-term.

A lot of mall developers buy property decades before they ever develop it. It's the only way to secure large tracts of land in growing areas.

[jbrown84]

But in this case they are partnered with several other developers, and it's unlikely that they will just sit on the land waiting 10 years for Simon to decide what kind of development to build.

[TheImmortal]

You also have to keep in mind they are planning a movie theater which alone will draw from Guthrie, Arcadia, Luther, Edmond, and anyone else who would rather not drive to Quail for a movie. Of course there is Kickingbird, but honestly I could see that becoming a dollar theater eventually. Futhermore, with an Embassy Suites being built in addition to a couple other hotels, I personally believe this will be the site chosen to build Edmond's convention center. So even if you take locals out of the mix, there will be a decent amount of travelers and convention attendees in walking distance of this development. When you throw in the other developments occuring along I-35 and the fact that east Edmond is the future of the city, I think possible retail tenants will see the whole picture. In the case they do not, they will be kicking themselves a few years down the road without a doubt. All the same this is just my opinion so I could be horribly wrong.

[Pete]

You guys raise good points and I really hope they can attract some great tenants and build an excellent development.

They are talking about starting as soon as the fall, so I guess we'll soon see.

[tnajk]

Can someone give an update on this?

[mturner]

Last I heard through grapevine development buddys, the project is dead in the water.

[tnajk]

Really?? Well, check this out...
http://www.clarydev.com/pdf/covellplaceedmondok.pdf