La Palmera Sets Standards for Major Mall Redevelopment

CORPUS CHRISTI, TX – La Palmera Mall Redevelopment –

 

In 2008 Padre Staples Mall in Corpus Christi, Texas was in trouble.  Built in the 1970’s it was tired and obsolete and loosing market share to competitors both locally and in Houston and San Antonio.  The size of the failing center had additional impact on the local economy and tax base.  Trademark Property Company, the Fort Worth based retail and mixed-use developer stepped in determined to not only save the mall but turn it into something special.

 

In partnership with Institutional Mall Investors, an institutional investment entity jointly owned by CalPERS and an affiliate of Miller Capital Advisory they purchased the 1,017,700 square foot super-regional mall in July 2008.  They immediately stopped the modest renovation program put in place by the former owners and committed to a $50 million transformation.  The City of Corpus Christi, recognizing the importance of the property and project to the local economy, passed a $19 million tax increment financing agreement to assist with the redevelopment.  And so in June 2010 La Palmera was reborn, beginning its new life as a cutting edge shopping and leisure destination and local economic development machine.

 

“We took a distressed 1970s mall and have literally transformed it into something spectacular,” said La Palmera General Manager Fred Walters. “We’ve added a great mix of new tenants and dining options and numerous amenities such as free Wi-Fi, expanded Concierge service, valet parking, and community programs, all of which greatly improve the guest experience.”

 

The First LEED Certified Mall

 

Perhaps the most significant step taken in this redevelopment plan was to make La Palmera the nation’s first LEED certified mall. La Palmera’s LEED-Silver certification is the third highest level in the LEED rating system. This means that, in addition to aesthetic changes, the redevelopment design plans are meant to reduce the mall’s impact on the environment through improved water and energy efficiency, and higher indoor air quality for shoppers and tenants. The commitment to greener building practices reflects the purpose of Trademark Property Company: to be extraordinary stewards, enhance communities and enrich lives.

 

“We spent a great deal of time planning to make sure we were pursuing the right LEED initiatives.  Those efforts allowed us to utilize much of the existing building and upgrade equipment which improved energy efficiency and reduced our footprint on the environment.” said Chris Harden, Trademark’s Director of Design & Construction. “The greatest challenge we faced during the LEED process was controlling the cost and ensuring proper documentation.” Although the company did spend more money on LEED consulting and fees, approximately $250,000, they did not end up spending more on construction costs. “We know it may cost us a little extra up front to implement ‘green’ standards within our projects, but in the long run, it is worth the effort and the right thing to do,” said Trademark Chairman – CEO Terry Montesi. “We are actively working to implement similar efforts in our entire portfolio and are proud to lead the way for this type of redevelopment.”

 

New and Improved

 

Trademark also took the approach that La Palmera would be more than a shopping destination. Renovation highlights include a 600-seat food court with a palm court dining patio and 4,500-gallon feature aquarium, one-of-a-kind ocean-themed children’s play area, revamped Center Court featuring a coffee bar and 20-foot-diameter fountain.  A new outdoor main entrance featuring new stores and restaurants, interactive pop jet fountains, valet service, and a new community room to further enhance the property.  The incorporation of expanded natural lighting, as well as new tile, carpet and furniture upgrades in public seating areas throughout the mall completes the new environment.

 

“We maintained our commitment to this project, even when economic events would seemingly dictate otherwise,” said Montesi. “There’s virtually nothing being built right now, which has helped La Palmera garner national attention. This project, however, is an example of one that was needed and has a pulse on the community. We’re giving the area exactly what they wanted.”

Capturing Tourist Traffic

 

The Corpus Christi Convention and Visitors Bureau is also counting on La Palmera to be a significant magnet for tourism.  “The Corpus Christi Convention and Visitors Bureau welcomes La Palmera and appreciates their support in our new campaign targeting the Rio Grande Valley and northern Mexico,” said Corpus Christi Convention and Visitors Bureau CEO Keith Arnold.  “The response has been positive and powerful and a tribute to the potential the shopping center brings to our area and our 7.2 million annual visitors.”

 

The State of Texas continues to grow as a U.S. shopping destination with $2.3 billion in sales annually from Mexican Nationals. La Palmera now provides the first Tax Refund Visitor Center in the Coastal Bend region. The venture, in partnership with TaxFree Shopping, Ltd., caters to the international visitors coming to the Corpus Christi area processing paperwork for them to receive their purchases tax-free.

 

“We are blessed Trademark has invested in our city,” said Corpus Christi Mayor Joe Adame. “They have been a great partner in delivering on their promises. Their work at La Palmera is having a very positive impact on our community. It is a real community showplace that is the buzz of the region.”

Anchor Remodels and New Tenant Infusion

 

Out-of-the-box thinking didn’t end with environmental and conceptual innovations.  Trademark immediately renegotiated leases with the Center’s anchor tenants resulting in expansion of Macy’s and remodeling of Dillard’s.  JCPenney added a ‘Sephora Inside’ as well.  Occupancy has gone from 78% to 92% resulting in 33 new leases as well as 38 renewals. “We worked diligently to provide just the right mix of new tenants,” said Walters. “Specialty shops such as Zumiez, Vans, Charming Charlie and the Aveda Institute Corpus Christi; upscale lines such as Coach, and Rolex being added to Reeds Jewelers; plus a variety of new food court and snack options as well as popular sit-down restaurants such as Grimaldi’s Pizzeria and P. F. Chang’s.

 

The mall’s new tenants, including Grimaldi’s Pizzeria, P.F. Chang’s and Ulta, have added an estimated 477 new jobs with more than 216 of those full-time along with over 1,000 construction related jobs during the redevelopment.

 

Dillard’s Chief Executive Officer, William Dillard, II, added, “We are truly happy with the dramatic transformation at La Palmera and we are excited to be a part of it. Trademark’s visionary achievement at La Palmera is mall revitalization done right. This premier development provides South Texas residents and visitors a unique experience in shopping, dining and entertainment.”

 

Trademark’s Montesi says the company will capitalize on their La Palmera success as they work to revitalize other distressed mall properties.  “We will draw upon this project as we look at other mall re-positioning in the future as we believe redevelopment will be quite active in this cycle given the current supply-demand dynamics.” “We have been able to create an environment that is more than a mall: it is a leisure destination. You can shop, certainly, but you can also just come for a night out, meet a friend for coffee, bring the kids to play or take advantage of the many programs and events that we are providing for the community.”

 

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Trademark Property Company (www.trademarkproperty.com) is an operator, investor and developer of regional malls, outdoor retail and mixed-use properties. Since 1991, Trademark has invested in or developed over 10 million square feet of retail and mixed-use assets worth over $1 billion. Based in Fort Worth, Texas, Trademark’s experienced team currently operates more than 5 million square feet.

 

To date, Trademark has created several successful retail and mixed-use developments from the ground up, including Dallas-Fort Worth area properties Watters Creek (Allen, Texas) and Alliance Town Center (Fort Worth, Texas), Market Street – The Woodlands (The Woodlands, Texas) and Market Street Flowood (Flowood, Mississippi), but La Palmera was its first regional mall redevelopment.  (www.lapalmera.com)