Shopping Center Business

MAY 2016

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

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RESTAURANTS 334 • SHOPPING CENTER BUSINESS • May 2016 the tenant can afford to pay for them to be successful. That's beneficial to the landlord so they are not out there in two years marketing the space again. SCB: From the restaurant side, what should they expect when dealing with a national landlord for the first time? Papadopoulos: Large landlords — in- cluding the ones that are REITs — are concerned about the bottom line. A lot of larger landlords are looking for top dol- lar rent, to get as much rent as they can to keep their investors happy, and to get the returns that they are projecting. That may not always work out well for a restau- rant that, while it may have a big name attached, is essentially a small business that is trying to expand. SCB: What are some of the more recent deals you've cut there? Papadopoulos: At City Center, Mango Tree is a joint venture with chef Richard Sandoval and a group out of Thailand. It's a Thai restaurant. We also cut a deal for a local chef named Amy Brandwein who opened a little Italian restaurant and mar- ket called Centrolina. We also brought Mastro's Steakhouse to the market. We also represented True Food Kitchen — speaking of healthy restaurants — in their entry to the market. They went into the Mosaic Project and they're getting ready to open their next restaurant in Bethes- da. We represent a lot of the fast casual players, including The Little Beet, which is a health food restaurant — everything on their menu is gluten free. They have a new fast casual concept and a full service restaurant called Little Beet Table. SCB U nder progressive development since 2007, the South Point power center in Henry County, Georgia, has boomed along with the area's population. The 800,000-square- foot center is anchored by JC Penney, Kohl's, Hobby Lobby, Academy Sports & Outdoors, Toys "R" Us/Babies "R" Us and TJ Maxx, among many other tenants. The initial phase of the center opened in 2008 with just a handful of retailers, and continued to develop as tenants signed leases. Developer Baker & Lassiter decided to take its time and de- velop a property that would fir the community as it recovered from the recession and grew. The area has grown incredibly, with Henry County often cited among the country's fastest growing areas in recent years. Baker & Lassiter was tradition- ally a developer of grocery-anchored centers and industrial parks in greater Atlanta. The company took the approach of starting small with a grand plan for South Point. In the case of the center, business attracted more business. "We made the decision to go forward because we knew this area needed retail, even in 2007," says Jim Baker, principal of Baker & Lassiter. The center has most recently added a number of new restaurants. Taco Mac, Pollo Tropical and Panda Express are upcoming at the center. Restaurants at the center have been among the strong performers in their chains. Baker & Lassit- er reports that the center's Pie Five and Five Guys have con- tinued to break chain-wide records for performance. When Freddy's Steakburger opened its first Atlanta-area location at South Point, it quickly became the Number 1 location in the country for the chain. What has helped the developers sell the center to retailers are its traffic counts, along with Henry County's demograph- ics. The company installed technology by Motionloft to count traffic at a major intersection at the center. "Henry County is becoming more dense," says Jay Baker, principal with The Chaseland Group, which works alongside Baker & Lassiter on South Point. One need not look far from South Point to see that; more than 1,000 apartment units have been built within a short distance of the center, and more are planned. There are five multifamily permits in the application process for land near the center. Because South Point has been built over time, it has never had a vacancy. That will change soon, as the company is start- ing to build 50,000 square feet of small shop space at South Point that it is marketing for lease. As part of that expansion, South Point will also be adding some public space, called The Forum at South Point, for shoppers to spend time. A theater is planned for the future, as is a Dave & Buster's unit. Jay Baker expects that the new space will allow South Point to attract new tenants to the market who have seen its growth, but who haven't been able to find a right-sized space due to pent-up demand and lack of available space in the area. — Randall Shearin South Atlanta's South Point Thrives Stores at South Point have performed well, due to increased demand and pent up demand in the market.

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