What's next for Crabtree Valley Mall under new ownership
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The entrance to Crabtree Valley Mall. Photo: Courtesy of Macerich
Crabtree Valley Mall's new owners promise to give the shopping center a $60 million facelift in the coming months. Long term, they're weighing whether to redevelop any of the mall's property.
Why it matters: Crabtree Valley Mall remains one of the region's dominant shopping centers even after more than five decades of operation and the introduction of more competition from new shopping developments.
- Its new owners say it generates $429 million in annual sales and has over 200 tenants, including premier ones like Apple, Barnes & Noble and LEGO.
Driving the news: Macerich, a real estate company that operates malls nationwide, including Tysons Corner Center in Virginia and Scottsdale Fashion Square in Arizona, bought Crabtree last month for $290 million.
- In the coming weeks and months, the company plans to spend $60 million in upgrades like new lighting and signage, a revitalized food court and family play area and new furniture and greenery in the common areas.
- It also plans to make upgrades to the site's stormwater infrastructure. Flooding has been a longtime problem on the property, especially as the nearby Crabtree Creek can flood during heavy rainfalls.
What they're saying: Cory Scott, executive vice president of asset management at Macerich, said his firm was first attracted to Crabtree because of its presence in a growing market.
- But after talks with tenants during the due diligence period, Macerich said, it was Crabtree's long reputation in the community that helped solidify its decision.
- "It has a fantastic tenant mix, with some of the best retailers in the space and good restaurants," Scott told Axios. "We're going to take what we do best with our leasing, management and redevelopment teams and take it to the next level."
Zoom in: He said Macerich hopes to leverage its relationships with retailers and restaurants to bring in new tenants and keep existing ones.
- Scott believes there's a large opportunity at the mall to include more experiential retailers and restaurants, as they have at other locations, including Round 1 bowling and arcade and the social gaming concept Level 99.
Between the lines: It remains to be seen, however, if Macerich plans to add more mixed-use development there, like apartments or offices, Scott said.
- The mall's previous owner proposed building a 30-story tower on the former site of the Sears at the mall, though those plans never moved forward. Dick's House of Sport now plans to take over the former Sears space, CBS17 reported.
- Redevelopment plans are "something that will take a while to develop," Scott said. "It is great there are other redevelopment opportunities but we are focused on the immediate retail space."