By Eileen Dallabrida
Even before it opens, the Christiana Fashion Center is shaping up as a destination for first-in-the-market retailers.
Saks Fifth Avenue OFF 5th has come on board at the 650,000-square-foot center new under construction near Christiana Mall, joining Nordstrom Rack, REI and, most recently, The Container Store, which has achieved a cult-like following among consumers.
The developer, North Wilmington-based Allied Properties, has long had Saks Off 5th on its wish list for the center. Other names on the list include Brooks Brothers, DSW, Ulta, Wine and Beyond and Whole Foods, as well as a big box golf store and an entertainment center.
Allied, which also owns Concord Mall, Merchants Square and Christiana Town Center, has longtime relationships with major retailers and is leveraging that clout to sign big-name merchants, says Jim Oeste, Allied’s vice president of real estate.
Christiana Fashion Center has overcome legal hurdles and major construction at the confluence of Interstate 95 and U,S. Route 1 on its way to becoming the next major retail center in what has emerged as a mecca for merchants. Christiana already is home to the iconic Christiana Mall and a big box center that includes Costco, Michael’s, hhgregg, Pier 1 and several chain restaurants.
A shank shot away, developers have applied to build a mixed-use and residential and retail community on property formerly owned by Cavaliers Country Club.
The 37-year-old Christiana Mall is near buildout with the recent opening of a multiplex theater the owners hope will attract younger audiences. Inside the mall, management is focusing on refining its mix of tenants.
No major announcements about new retailers have been made in 2015 at the mall owned by General Growth Properties.
At the fashion center, Saks OFF 5th will be 32,000 square feet and will be sited next to Nordstrom Rack. Currently, the closest Saks outlet is located at Philadelphia Mills in Bucks County, Pa., a shopping center formerly known as Franklin Mills.
The new store will feature an open, modular layout and will offer ready-to-wear apparel, accessories, a children’s department, beauty and a travel department.
“Christiana marks our first Delaware location, and we are thrilled to bring our outstanding product and renowned value to the people of New Castle County,” said Jonathan Greller, president of outlets for the Hudson Bay Company, Saks’ Canada-based parent. “We believe Saks Fifth Avenue OFF 5TH Christiana will become the must-shop destination for luxury merchandise at an affordable price.”
The first phase of the center has an expected delivery date of late fall and will include 12 retailers, Oeste says. Allied has permission to develop up to 915,000 square feet in the open-air lifestyle center.
Malls and shopping centers are enjoying the best time in years, according to the International Council of Shopping Centers (ICSC) and the National Council of Real Estate Investment Fiduciaries (NCREIF).
The trade groups recently reported data for 2014, reflected record gains in rents, occupancy and net operating income. Mall occupancy rates rose to 94 percent, the highest since 1987. Occupancy rates for all retail centers were 93 percent, the most robust since the economic downtown of September 2008.
The bottom line: shopping center operators made more money. Net operating income posted the highest growth in the past 14 years at both shopping centers and malls.
Saks OFF 5th is in growth mode, most recently making its debut in San Francisco and announcing a new store in Brooklyn. Same-store sales—that is sales at stores open a year or more—are up 12.1 percent.
Hudson Bay plans to grow Saks OFF 5th on both sides of the border, opening 25 stores in the United States and seven in Canada.
