Sunday, August 14, 2016

New York developer upgrades center; national beauty retailer among new tenants



A New York-based real estate firm is upgrading a shopping center in Pohatcong Township, N.J., to attract tenants and shoppers.

Among the new tenants is ULTA Salon, Cosmetics & Fragrances Inc., a national beauty retailer that’s expected to soon open a store.

The site, Pohatcong Plaza off Route 22 near Phillipsburg, includes a mix of tenants as recent construction shows a key effort to fill spaces that have been vacant for a decade.


National Realty & Development Corp. of Purchase, N.Y., has been developing the project since 2012, said Dovid Spector, senior vice president of leasing for National Realty. That’s when the firm started working with Wal-Mart to relocate the store to a larger site which opened as a Wal-Mart Supercenter at the former Laneco supermarket, also in the township a short distance away.

Since that time, the firm backfilled Walmart’s old space in Pohatcong Plaza with retailers Marshalls, Home Goods and Hobby Lobby.

Now that those department stores are in place, the firm is repositioning the merchandising in the shopping center, Spector said.

The firm has been successful in transforming the shopping center into a power center, Spector said.

These centers are regarded as centers that have a gross leasable space of about 537,410 square feet, he said. These centers include few small tenants and usually three or more dominant anchors.

“What we have done is create a merchandising mix of soft goods, health and beauty, dining and entertainment categories,” Spector said. “It’s multiple categories that ultimately drive traffic.”

Pohatcong Plaza was redeveloped into a regional center anchored by Stop & Shop, Regal Cinemas, Marshalls, Home Goods and Hobby Lobby, he said.

“ULTA enhances the merchandising mix at the center,” Spector said. “The new tenants reposition the center as the key regional power center in the area.”

Party City needed a larger store and decided to move, he added.

“We then were able to take two stores that were empty about 10 years, they were very narrow,” Spector said, referring to the interior space. “We were able to combine a vacant Hallmark store and with a portion of the vacant Party City.”

ULTA will then occupy that space, opening this year, Spector said.

The space is about 12,000 square feet.

Between ULTA and Hobby Lobby is another space available that’s 11,310 square feet. Spector said the firm is talking with tenants who could occupy it.

Even with these new tenants, Pohatcong Plaza is not fully leased. One of its big tenants, a chain called Club Metro USA Fitness Center, decided to relocate to another spot in a nearby shopping center. That space has to be filled, ideally with a tenant in the fashion industry, he added.

Spector declined to disclose the construction costs for the upgrade project.

National Realty, which is an owner, developer and general contractor firm, completed the exterior work for the upgrades, while ULTA has its own contractor for the interior work, Spector said.

Source: LVB

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