Shopping Center Business is the leading monthly business magazine for the retail real estate industry.
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ROUSE 88 • SHOPPING CENTER BUSINESS • December 2016 mall. With Mall of America about 14 miles away, Rouse realized the competitive na- ture of the retail landscape and de-malled the site by tearing down Knollwood's walls, relocating a Panera Bread and adding Nordstrom Rack, Ulta Beauty, TJ Maxx/HomeGoods and Old Navy. After investing approximately $27 million into a mall that may have been valued at rough- ly $20 million, Rouse sold the Shoppes at Knollwood for $106.7 million, generating in excess of $70 million of proceeds. "We are visionaries who can see past a distressed mall," says Rouse Chief Execu- tive Officer Brian Harper. "We say every day that not all B malls are created equal- ly. The beauty of malls is their superior regional locations and their land. How will you unlock that great real estate un- derneath the mall and the parking lot?" Harper also points to NewPark Mall in Newark, California, as another classic ex- ample of how Rouse unlocks opportuni- ties. Construction be- gan in summer 2014 to transform the 1.1 million square foot mall near San Francis- co in the East Bay area that Harper says was virtually untouched since the 1980s into a popular place to be. Rouse partnered with the city of Newark to receive tax incentives from the capital spent on the improvements, which are in- tended to increase the city's tax revenue. New tenants joining the mix at New- Park include H&M;, 24 Hour Fitness, francesca's, John's Incredbile Pizza and Jack's Restaurant & Bar. New leasing will account for approximately 182,000 square feet with 120,000 square feet of entertainment featuring a 12-screen AMC with IMAX, which opened in December 2015. Rouse says many existing tenants will or have remodeled their stores, some with the most updated prototypes such as Victoria's Secret, Pink, Champs, Disney, Starbucks Coffee, Hollister and Hot Topic. "We took back a lot of unproductive Brian Harper CEO Rouse Properties In San Francisco's East Bay, Rouse's NewPark Mall has been heralded as an example of how to redevelop an older regional mall into a new and vibrant use. NewPark Mall mixes entertainment with food and retail at accessible price points to meet its market, giving consumers what they want at a convenient location. Rouse is redeveloping the 1.1 million square foot NewPark Mall in Newark, California, near San Francisco. New leasing will account for approximately 182,000 square feet, with 120,000 square feet of entertainment featuring a 12-screen AMC with IMAX, which opened in December 2015.