November 30, 2008
Milton Herald Editor and Business Post contributor Jason Wright recently quizzed Mimms Enterprises' Brad Shoemaker, director of marketing and Michele Del Monaco, senior vice president of leasing, about the Silos at North Farm Marketplace redevelopment.
What was done to renovate and improve the property?
Shoemaker: Essentially, when we purchased it there were plans already in place [from Marietta-based Retail Planning Corp.] that were approved by Alpharetta. We went, took the plans they had and did some minor modifications that we thought fit, as well as the modifications from Alpharetta.
That included a facade face lift, a total redesign of the parking facilities and changing the landscaping – beefing that up significantly in order to meet the codes of Alpharetta.
Structurally, nothing was torn down. We added certain highlights, like the three silo domes to the building. The only other significant addition was the [14,550-square-foot] outparcel that is pretty much finished for Walgreens.
What percentage of the center remains leased from before its renovation?
Shoemaker: Since they [Retail Planning Corp.] were going to redevelop it, they got rid of a lot of the tenants. There was only three in there when we purchased it — two restaurants and a nail salon.
Obviously when you're doing something like this it is very taxing, but we were fortunate enough to only lose one of those tenants. We knew going into it that our goal was to lease this thing overall, head to toe.
We're zeroing in on anchor tenants and not worrying much about local tenants until after the fact. But we need those anchors to set the precedents as far as what we're going to charge by square foot and what type of tenant mix we want.
It has been reported that Natural Foods Warehouse has signed a letter of intent for the Silos. Is that a possible anchor?
Shoemaker: We've been working with them for a while. It's still in the works – I wish I could say its moving along a lot further, but with the current economy companies are trying to get loans and figure out if it's the right time to grow. So that's kind of slowed things down a bit.
Del Monaco: They've got two local locations, one in a shopping center we own. At this point, they are talking about doing a smaller store. As far as financing goes, it's been tough to come by a loan lately. But we're hoping they will move forward to take a portion of the anchor store, probably between 12,000 and 18,000 square feet.
What are companies having to do to fill their centers in light of today's economy?
Del Monaco: First of all, you have to be a little bit creative and look for unique tenants. There's a lot of competition out there. Depending on where your center is located, you have to be cognizant of the market's needs.
With the Silos it's a little bit different. It's a neighborhood center, so a lot of national retail tenants are not interested because you don't have the draw of a mall or four-lane highway.
We're being more flexible in the lease terms, giving a little bit more tenant improvement allowance – just to kind of get them through a softer first- and second-year period, to get them on their feet and get them going.
Everyone is having a rough time, and everyone is kind of holding back.
Is Mimms doing build out for retailers?
Del Monaco: Yes, but it depends on what type of tenant it is. A lot of times, restaurants want to have the flexibility and control of their build out because there is plumbing, grease traps and health department inspections.
A lot of time we'll do what we call a "vanilla shell build out" and then the tenant will take over and do their specific build out for their use.
How does the Alpharetta market compare to metro Atlanta and the rest of the state? How about regionally or nationally?
Shoemaker: I think Alpharetta is very strong. Income is strong, as well as population. I don't want to say this area is recession proof, because it's not. But as far as growth and income, it's very positive.
It's a big draw for a lot of investors in the area. It's not as bad as Florida or California is feeling it from a real estate side.
|
