Shopping Center Business is the leading monthly business magazine for the retail real estate industry.
Issue link: http://shoppingcenterbusiness.epubxp.com/i/752067
HARLEM IRVING 102 • SHOPPING CENTER BUSINESS • December 2016 The company mails coupon books to 100,000 households several times per year. Generally 50 to 60 of The HIP's 140 tenants participate. "We find our cus- tomer responds extremely well to that," Marchese says. Mara Russiaky, corporate marketing di- rector at Harlem Irving Companies, says, "A lot of people love our handheld coupon books, but we are also fortunate to have a lot of Facebook, Twitter and Instagram followers. Our shoppers are engaged with us on our social media channels. In addi- tion, we offer free wi-fi at The HIP, which has proven to be extremely popular with both customers and tenants." She adds, "We have a lot of Hispanic and Polish shoppers at Harlem Irving Plaza, so we've started promoting some events and providing information to cus- tomers in Spanish and Polish, as well as English." The HIP is featured periodically on WGN's news programming, where the segments showcase affordable fashion. The HIP's marketing department also holds community events including events for children, such as trick-or-treat on Halloween and visits with Santa Claus during November and December. "In cele- bration of our 60th Anniversary, this past April we held a huge event to thank our shoppers. It was a free event featuring music, food, giveaways and a meet and greet with three Chicago Hall of Famers: Mike Dit- ka, Dick Butkus and Bobby Hull. People had such a fun time at the event, and were thrilled to be a part of the celebration," Russiaky says. A few years after Harlem Irving Plaza opened, it began hosting a program called Safety Town. More than 1,200 first grade students visit the center on field trips over a two-week period each year. "We just celebrated our 54th year of hosting Safety Town, which is something we are incredibly proud of. We work with the fire department, police department and crossing guards to offer programs to these children covering gun safety, stranger dan- ger, traffic signals, and fire safety, as well as how and when to call 911. This is such an effective, important program and it integrates our shopping center with the community," Russiaky says. The company also sponsors the HIP Giving Tree program each year during the holiday season. Russiaky explains, "We work with 10 local charities, and gather wish cards for children and adults that these charities serve. Shoppers will pick out a wish card, buy the present listed on the card and we disseminate the gifts back to the charities so they can distribute them to those in need. When there are unfilled requests, Harlem Irving Companies takes over the shopping to fulfill all the wishes." Gift cards are a key component to the marketing program. Russiaky says, "We partner with popular establishments and entertainment venues throughout Chica- go. For example, if you buy a $100 HIP gift card, you receive a complimentary ticket to the Museum of Science & Industry. The beauty of our gift card is that it has to be used at Harlem Irving." Other part- ners in the gift card program have includ- ed Chicago White Sox, Brookfield Zoo, water parks, boat tours and the Shedd Aquarium. HARLEM IRVING VALUES Since Harlem Irving is a long-term own- er, it approaches projects with a specific mindset. "The build-to-own philosophy has a dif- ferent playing field," Filler says. "We know we're going to put self-amortizing debt on a project. That 15-year lease we're doing is going to be ours for the next 15 years. That asphalt parking lot we're putting in, that is going to be our problem for the next 20 years. Everything we do is ours to live with, including the quality of our leases. And that applies whether you build a high-rise or a 5,000 square-foot out lot." Gerlach agrees: "Our ownership makes decisions based on what is best for a prop- erty for the long term. When you are pri- vately owned, you can look at the long term, not only short-term results." Murray says, "We look at the merchan- dising on a daily basis. If there is a specific tenant that we think will do well here, we pursue that tenant. Obviously, dollars are important, but we take a long-term view. We want to make sure a certain category isn't getting saturated. The margins have shrunk, and the retail landscape is more competitive. The inventory of tenants has somewhat depleted." Relationships play a key role in the company's opportunities, from leasing and development to financing. Gerlach says, "For long-term loans, we go with life companies: Prudential, John Han- cock, and Farm Bureau. I believe we've done seven loans with John Hancock in the last three years. Our relationship with them dates back to 1978. We go 15 to 20 years out. Even though lending is getting very tight, we've been able to get financ- ing because of our relationships and our strong sponsorship. For construction loans, we use JP Morgan, The Private Bank, Fifth Third Bank and Associated Bank. Michael [Marchese], his family and the same group invest in every property. The lenders know we're there for the long run. Strong sponsorship is key." Internally, communication is the back- bone of the company. "We talk to our in- vestors weekly, keeping them informed. They are part of our team. On the mar- keting side, our efforts are adjusted based on tenants' needs," Gerlach says. Filler adds, "We are fully integrated in a special way. We are a company based on communication. Finance, legal and development work closely together to solve problems as well as create oppor- tunities. While this business has its share of problems, I believe we are excellent problem solvers. We go about taking care of the problems that arise, from closing very large loans to managing tenants and leases. It is this problem-solving ability Russiaky We are a company based on communication. Finance, legal and development work closely together to solve problems as well as create opportunities. — Richard Filler