ABJ: New tenants help turn around The Village Shopping Center Read more: New tenants help turn around The Village Shopping Cent
Aug 21, 2009
http://www.bizjournals.com/austin/stories/2009/08/17/daily52.html
The Village Shopping Center, a 35-year-old retail development in North Central Austin that was at risk of going bust not long ago, has gotten a second wind thanks to a series of new tenants.
Occupancy at The Village, largely recognized as the home of the Alamo Drafhouse's Anderson Lane location, has jumped from 60 percent to 85 percent after its new owner decided to make renovations and rethink the center’s user mix.
Much of the change has come from several new schools that have moved into the center, bringing roughly 300 small children to the property each day. Altogether, The Village is now home to more than 50,000-square-feet of schools and health training facilities.
An affiliate of Austin-based Capital City Partners LLC purchased The Village in fall 2007. The ownership group, led by local developer Joe Lamy, had a tough time getting the property's lender, the now-defunct AIG, out of the picture. Once done, that paved the way for the owner to refinance the property through Texas Capital Bank.
In February 2007, the group asked the city for a zoning change on the property to allow for a larger mixed-use development. That request was eventually withdrawn and Lamy's group opted instead to make improvements to the existing center and approach the leasing strategy from a different angle.
Since then the center has signed a total of eight leases, including those for five new tenants to the property. Altogether that's filled 64,000 square feet of the 140,000-square-foot center. Aquila Commercial, the local brokerage firm brought into to lease the property, focused not just on pure retail tenants but also service companies that benefit from the center’s surrounding populated neighborhoods.
New tenants include:
* Jewish Community Association of Austin: faith-based organization leased 8,400 for its expanding early childhood program;
* Spanish Immersion Day Care: The Austin-based multi-lingual children school leased 6,700 square feet and opened in early August;
* Madam Mam’s: Local Thai chain leased 4,500-square-feet to bring its third-area restaurant to North Central Austin.
* Chipolte: The gourmet burrito maker leased 2,500 square feet to bring its fifteenth location to the greater Austin area.
* Cover 3: Launched by two former managers of Z Tejas restaurants, this sports-meets-spirits and upscale dining concept leased 7,800 square feet – and kick-started the revamping of the center.
“Just after we purchased the center, everything changed drastically in both the lending markets and retail sector,” Lamy said. “The success we’ve achieved is due primarily to the property’s uniqueness, patronage of surrounding neighborhoods location, ability to offer submarket rents and innovative leasing effort on behalf of Aquila Commercial.”
The center also renewed the Body Business gym with 14,000 square feet, Fuddruckers with 4,500 square feet, and the Academy of Oriental Medicine with 16,000 square feet.
Lamy said there is also a plan to overhaul the one-acre courtyard in the center of the property, turning it into a park-like asset for both the property and the surrounding neighborhood.
