COVER STORY, FEBRUARY 2005

Entertaining Shoppers
Northeast companies are taking on various projects in hopes
of creating bankable retail and entertainment destinations.
Kevin Jeselnik

The retail and entertainment industries need only one thing to find success — people. If a retailer or entertainment venue can bring in consumers, then it will typically thrive. In the Northeast, the retail and entertainment development market has experienced a substantial resurgence during the nation’s economic recovery. One reason for this strong market has been developers’ willingness to create projects that renew interest in neighborhoods or cities where revitalization is needed while providing retail and entertainment options people want. Northeast Real Estate Business takes a look at a mix of retail and entertainment developments — some offer fresh, new concepts to a market and some bring retail and entertainment concepts to areas in need of an economic spark.

New York Sports and Convention Center New York City New York City officials hope that the development of the 2.2 million-square-foot New York Sports and Convention Center would help sway the International Olympic Committee into selecting The Big Apple as host for the 2012 Summer Olympics. The city is one of five finalists in the running for the games. The proposed New York Sports and Convention Center (NYSCC) in New York City represents many things to many different people. For several local city officials, it signifies a crucial development in efforts to revive the city’s underutilized West Side along the Hudson River. For New York Governor George Pataki and New York City Mayor Michael Bloomberg, it signifies the key attraction in New York City’s bid for the 2012 Olympics. For some city residents, the stadium and convention center is simply a long-awaited opportunity to bring the beloved New York Jets football team back home from the Meadowlands in New Jersey. Whatever the case, the NYSCC should fulfill each group’s needs. The Empire State Development Corporation has approved the general project plan for the development, which is expected to generate more than $1 billion in city and state revenue and create numerous construction jobs in addition to permanent jobs. The site for the project is on the Hudson River, bounded by West 30th and West 33rd streets and by 11th and 12th avenues. The facility will be constructed on a steel and concrete platform above the rail yards owned by the Triborough Bridge and Tunnel Authority, an affiliate of the Mass Transit Authority. The New York Jets have committed $800 million dollars to the development of the NYSCC. The stadium would enable the team to move back into its home city from Giant Stadium in New Jersey’s Meadowlands mixed-use campus. The planned 2.2 million-square-foot facility includes a 75,000-seat, open-air stadium for use by the New York Jets, a 180,000-square-foot exhibition hall and another 18,000 square feet of meeting space for trade shows and conventions in conjunction with the adjacent Jacob Javits Convention Center. The stadium will feature a retractable roof and a removable, palletized artificial playing field to allow for a seamless conversion from stadium to convention hall. With the ability to shift easily from an open-air stadium to covered convention hall to arena, the NYSCC will be one the most dynamic multi-purpose structures in the world. The multi-use property will allow New York City to host a number of events that it could not entertain in the past. For approximately 17 days a year, the facility would function as a stadium. During the rest of the year, the NYSCC will double as the city’s first mid-size convention center and offer ancillary space to the Javits Center. One event the city hopes to see the NYSCC host is the 2012 Olympics. With New York City named as one of the five finalists still in consideration, public officials hope that this development will serve as a catalyst in courting the International Olympic Committee’s favor. Indicative of the vested interest that all of the involved groups have in the revitalization on the West Side and the success of this project, the Jets have committed $800 million to the project, coupled with $600 million in city and state financing. The Jets will pay for the construction of the facility; the public investment will cover the cost of the platform and roof, making it a year-round multi-use sports and convention center.

Oceanfront Asbury Asbury Park, New Jersey In a recent trend, many communities along New Jersey’s waterfront are undergoing dramatic redevelopment. From Hoboken to Jersey City, Perth Amboy to Atlantic City, towns are renovating and redeveloping properties into modern, upscale commercial and residential communities. In Asbury Park, master developer Asbury Partners is working to create Oceanfront Asbury, an exciting new mixed-use community with the appeal and charm of an old-time beachfront boardwalk. The boardwalk at Oceanfront Asbury will be the heart of Asbury Park’s revitalized retail and entertainment district. SOSH Architects The master-planned project will encompass an estimated $1.25 billion in total economic development. The 56-acre redevelopment plan includes numerous residential developments, municipal services and urban empowerment initiatives, and a retail and entertainment component. A number of developers are already at work on several multifamily projects within Oceanfront Asbury. The retail and entertainment district will total 450,000 square feet along approximately a half-mile of boardwalk space. It will feature permanent and seasonal retail as well as entertainment venues. Asbury Partners has purchased the existing Convention Hall and Paramount Theatre Complex, a prominent entertainment venue, and is working to revitalize Asbury Park’s position as one of New Jersey’s most well-known entertainment hubs. The plan for the retail and entertainment concept features restaurants, nightclubs, family entertainment, shops and boutique retailers along the boardwalk. Asbury Partners owns five beachfront pavilions and is marketing the spaces to seasonal and year-round retailers, restaurants, and entertainment companies nationwide. The 3rd Pavilion is the central retail location along Oceanfront Asbury’s boardwalk. The building will feature a number of seasonal and permanent retail, restaurants and bars. SOSH Architects Asbury Partners has enlisted SOSH Architects, with offices in New York City and Atlantic City, New Jersey, to design the new retail and entertainment district. SOSH Architects’ plan for the revitalization of Asbury Park emphasizes the community’s status as a diverse tourist attraction. The design aims to preserve the distinctive aspects of Asbury Park’s waterfront history while establishing Oceanfront Asbury as a major New Jersey destination. From the retail and entertainment zone to the 3rd and 5th Avenue Pavilions, SOSH is creating a highly visible locale, using vibrant colors, shapes and textures to attract and welcome patrons. The firm’s design for the 3rd Avenue Pavilion — the center of the retail and entertainment district — will maximize the potential of the building’s visible ‘four fronts’ for the benefit of retailers and visitors. The intersection of the 3rd Avenue Pavilion and boardwalk will form the heart of the oceanfront’s reanimation. The Oceanfront Asbury redevelopment project is expected to be completed in phases over the next 10 years. Working closely with the city, Asbury Partners hopes to re-establish Asbury Park as on of the prominent retail, entertainment and residential destinations on the Jersey Shore.

Pittsburgh Mills Frazer, Pennsylvania In conjunction with Johnstown, Pennsylvania-based Zamias Services and the German company KanAm, The Mills Corporation of Arlington, Virginia, is developing a unique project blending retail tenants with entertainment venues within a high-end mall setting. Pittsburgh Mills, the company’s new development on 200 acres just outside of Pittsburgh in the city of Frazer, will feature two retail components and an entertainment district offering a variety of shops and activities. The development broke ground in 2003 and the grand opening has recently been tapped for July 14th. Lucky Strike Lanes will open one of its trendy bowling alleys in Pittsburgh Mills when the mall bows in July. Along with bowling, there will be a bar area, separate restaurant, floor-to-ceiling video screens at each lane and a showcase for local artwork. The retail project is divided into two concepts, the Galleria at Pittsburgh Mills and the Village at Pittsburgh Mills. The Galleria is the enclosed, full-price fashion component and will total approximately 1.15 million square feet of retail, including 380,000 square feet of in-line retail, restaurants and food court. It will feature a one-level racetrack design with hardwood floors, colorful courts and retail neighborhoods typical of other Mills developments. The major retail tenants will be Kaufmann’s, which will occupy 165,000 square feet; a 98,000-square-foot JC Penney; Sears Grand; Borders; Linens ‘n Things; and Dick’s Sporting Goods. The entertainment zone at Pittsburgh Mills will feature a NASCAR SpeedPark, which offers a wide array of games and activities for children and adults, including multiple race tracks, an arcade and a climbing wall. Within the Galleria, The Mills Corporation has created a distinctive entertainment area offering an assortment of fun activities. Cinemark will open its fifth Pennsylvania theater in Pittsburgh Mills, offering 18 screens. Lucky Strike Lanes will bring its trendy take on the bowling alley to the mall, including a bar area, restaurant and a showcase for artwork. Floor-to-ceiling video screens at the end of each lane will showcase anything from the aforementioned artwork to cartoons and short films from local artists. Capping off the eclectic entertainment district is the NASCAR SpeedPark. NASCAR SpeedPark bridges the gap between go-kart family entertainment venues and the NASCAR racing circuit. The park offers fun for all ages, with multiple racetracks for kids and adults, an indoor climbing wall, a state-of-the-art arcade and interactive games, mini golf, bumper boats, and NASCAR merchandise. Adjacent to the Galleria, the Village at Pittsburgh Mills will present a collection of big box, full-price and value anchors. A Wal-Mart Supercenter is under development in the Village, and will offer a full line of groceries and a general merchandising department. Alongside the Wal-Mart will be a Sam’s Club. The two big box retailers will anchor the Village and round out the retail component. With its coupling of traditional retailers and distinctive entertainment venues, Pittsburgh Mills is set to become a prominent location in the Pittsburgh area, providing a vast range of shops, restaurants and activities.

The Aud Buffalo, New York Like many Northeast cities, over the years Buffalo, New York, experienced an exodus to the suburbs, as residents, companies and retailers moved from within the downtown area into the surrounding towns and communities. During recent years, a downtown renaissance has slowly taken hold of many northern cities. Downtown districts are encountering renewed interest from businesses and residents. One thing that has been proven time and again is that retailers follow the consumer. Now, as the downtown areas are again teeming with residents, the retailers are seeking to relocate there as well. In Buffalo, through a team effort from local, state and federal governments, economic development groups, and private interests, the downtown area has received an enormous boost. Buffalo Niagara Enterprise, the city’s economic development authority, is working with Bass Pro Shops, one of the nation’s foremost outdoor retailers, to develop a 250,000-square-foot store in the redevelopment of the Buffalo Memorial Auditorium. Known as The Aud, the auditorium is the center of a large-scale revitalization effort occurring along the Buffalo waterfront. The redevelopment of The Aud is expected to open in 2007. The total redevelopment cost will be approximately $123 million. The arrival of Bass Pro Shops signifies a major turnaround for the city, bringing the first of many well-known national retailers back into downtown. The Bass Pro Shops outdoor stores are known for combining retail with entertainment, conservation and outdoor education. The store offers products including equipment and clothing for hiking, camping, wildlife viewing and more. There will also be a gift and nature center and expansive boat showroom. The Aud backs up to the Buffalo River as it flows through the southern end of the city and will allow for a unique experience for consumers visiting the Bass Pro Shops store. Customers will be able to select a fishing rod, step onto a promenade located behind the store, and test the rod in the waters of the river. The waterfront location will also allow for boat exhibitions and showcases for the line of boats sold in the store. Along with the Bass Pro Shops store, a 100-room hotel will be developed on the site. Proposed designs involve either creating a lower, new building for Bass Pro Shops with an adjacent hotel or going vertical with the hotel development above The Aud. The front and back façades of the Aud are designated as historically significant, so the redevelopment calls for the demolition of the structure’s sides and gutting of the interior while leaving the front and rear untouched. As the demolition and initial renovation takes place, Buffalo Niagara Enterprise will explore the best uses for the remaining space. Aside from the 250,000 square feet to be inhabited by Bass Pro Shops, The Aud will have approximately 75,000 square feet to 100,000 square feet of additional space available for various enterprises. A historical museum and a full-service restaurant have been proposed, with some space held for ancillary retail. The collaborative effort to redefine the Buffalo downtown district can be seen by the sizeable investments from both Bass Pro Shops and the public sector. Approximately $66 million in public funds will be used for infrastructure improvement and demolition of The Aud. Bass Pro will then invest $57 million for the development of its destination retail center. With this project underway, Buffalo has kick-started the revitalization of its downtown district and paved the way for further retail and entertainment development.

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