Shopping Center Business

MAY 2015

Shopping Center Business is the leading monthly business magazine for the retail real estate industry.

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300 • SHOPPING CENTER BUSINESS • MAY 2015 is complete, the center will be 2.2 million square feet. The center will grow from 250 stores today to more than 350 when the expansion is finished in 2017. "The original Silicon Valley and origi- nal Valley Fair were all about function," says Scot Vallee, vice president of devel- opment for Westfield's northwest prop- erties. "Like electronics, companies and residents here have gone from functional to fashionable. Tory Burch placing FitBits on fashion models is evidence of that, and Yahoo! CEO Marissa Mayer is often cited as a fashion icon. Apple's new campus and Google's new campus are works of art. Valley Fair has to keep up with that customer." Westfield has been moving tenants in preparation for the expansion over the last 18 months. It created a new entry for Nor- dstrom and created a luxury retail wing that includes tenants like Prada, Cartier, Tiffany & Co., Miu Miu, Salvatore Fer- ragamo, and Burberry, among many oth- ers. Westfield also created an exterior entrance showcasing its luxury retailers. Since Americans are now placing a higher value on quality food offerings, Westfield wanted to enhance the offerings at Valley Fair's food court. The company recreated its food court into a dining ter- race, even though the existing food court was the top performing one in Westfield's U.S. portfolio. With Valley Fair, Westfield is improv- ing a center with a strong foundation. "Valley Fair is one of our iconic, flag- ship centers," says Vallee. "The line-up of stores here is as Class A as you can get, and our luxury collection is I think at the top for any mall." In Southern California's San Fernando Valley, Westfield is adding a new center to its collection of adjacent properties that include regional mall Westfield Topanga and power center Promenade. Westfield is under construction with a new open- air center called the Village at Westfield Topanga. The Village is anchored by a new Costco, REI, Sur La Table, Jonathan Adler, Z Gallerie and Bassett Furniture. An existing Crate & Barrel is also part of the Village. New inline tenants include Athleta, Asics, Varga and M. Fredric. "The Village will be a lifestyle area that complements the mall offering that West- field Topanga has," says Greg Miles, U.S. chief operating officer for Westfield. "In total, the project will create an amazing collection of retail from luxury to power that isn't rivaled in the area." The Village also adds a restaurant component to the Westfield Topanga mix, with 15 restaurants scheduled to open this fall with the center. They in- clude Il Fornaio, Larsen's Steakhouse, Le Pain Quotidien, Panera Bread, Cava Mezze Grill, Lucille's BBQ, Pieology and Tender Greens. Other food tenants will include Peet's Coffee, Go Greek Yo- gurt, EMC Seafood & Raw Bar, Coffee Bean & Tea Leaf and Yogurtland. Three health-minded tenants — 24-Hour Fitness, UCLA Health & Wellness Center and Yoga Works — will also be part of the Village. Westfield has purchased the Sears property at Westfield Topanga and the Macy's properties at the Promenade. Macy's has consolidated its stores at the centers into a single store at Westfield Topanga. Westfield plans to recycle the Sears property at Westfield Topanga into an entertainment district that will include a new cinema and restaurants. Westfield has not yet announced plans for the Ma- cy's locations at Promenade, but accord- ing to Miles, the company's "additional in- vestment in the former Macy's and Sears spaces offers significant opportunity for future growth." Westfield Topanga continues to be a strong asset in Westfield's Southern Cal- ifornia portfolio, anchored by Neiman Marcus, Macy's, Nordstrom and Target. The center has inline tenants that include Apple, Salvatore Ferragamo, Louis Vuit- ton, Gucci, Tiffany & Co., Tesla and Burberry. With the completion of the Village this fall, Westfield estimates that annual sales generated by the more than 350 retailers and restaurants will be be- tween $1.2 billion to $1.4 billion annually. At Century City, which Westfield ac- quired in its purchase of the Rodamco portfolio in the early 2000s, the company has been slowly acquiring adjacent real estate and positioning the center to be- come a true mixed-use development. The company recently announced that Macy's would relocate its store at the center and that Nordstrom would relocate a nearby store to the center. An addition will also double the amount of small shop space at the center. Food purveyor Eataly will open at Westfield Century City, adding to its regional draw. Nordstrom will add a three-level flag- ship store in 2017, while Macy's will re- locate to a new, two-level location at the center. Bloomingdale's will remodel its three level store as well. The new Macy's location will enhance that store's offering; the store is one of the most successful in the chain. In all, 422,000 square feet of retail space will be added to the center, bringing its total size to 1.2 million square feet. Westfield is investing $800 million in the center. "Century City is one of the flagship properties on the West Coast," says Miles. "We have been working for some time on a complete redevelopment of the prop- erty, which will add Nordstrom to the cen- ter. The addition of Eataly and the small shop space will really make it the most comprehensive offering on the West side of L.A. What we've done is study districts At Westfield Century City, Macy's will relocate to a new store, and Nordstrom will move to the center. One of the top Bloomingdale's in the country is located at the center, and the retailer plans to remodel and expand that store. Westfield will also add a significant restaurant component as well as double the small shop retail space as part of a major $800 million renovation and expansion project.

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