Think the creation of a shopping center like Van Dyke Commons is a mundane, drama-free task? Read on.
By BILL COATS, Times Staff Writer
Published June 23, 2006
If you lived near Lutz, would you rather shop at a Kohl's department store or a spanking new Sweetbay supermarket?
Would you like a Big Mac from McDonald's or soul food from Lee Roy Selmon's?
All of these chains made overtures to the Van Dyke Commons shopping center, now under construction at N Dale Mabry and Van Dyke Road.
But for reasons known almost exclusively to the shopping center industry, none of them will be there.
Filling a shopping center, it turns out, is no random occurrence. Strip centers come together with careful planning and a fair amount of behind-the-scenes jostling.
Imagine a cocktail party that Mary will not attend without Phil, but that Betty is boycotting for fear she will run into Bob's mistress.
The story of Van Dyke Commons illustrates the machinations that unfold long before the walls go up.
Ever wonder why there always seems to be a Bed, Bath & Beyond near a Best Buy? Follow along and you'll begin to understand.
Chain reaction
"In the beginning, it's like putting together a symphony orchestra and none of us can play an instrument,'' said Clark East, the developer at Van Dyke Commons. "At the end, everybody's playing an instrument and we can play a tune in concert.''
The idea is to pull together a cast of stores that will attract far more customers collectively than they could have individually. That makes the finished shopping center easier to sell to an investor. And the track record makes East's next project easier to lease.
In the industry the concept is known as "cross-shopping,'' matching stores that appeal to customers of similar tastes, said Jim Kovacs, who manages local retail services for the Colliers Arnold commercial real estate company. A TJ Maxx, Steinmart or other clothing store will attract a shoe store like DSW and then maybe a cosmetics store.
The chain reaction starts when a shopping center identifies its largest store, known as the "anchor.''
Kohl's was one of the first potential anchors to express an interest in Van Dyke Commons, said East, who spent two years playing with the mix. But the property came with a slew of zoning restrictions. One of those made it impossible to build a McDonald's in the parking lot. Another did not give the largest store enough space for Kohl's, which ended up at the site of the former Hollywood 20 movie theater around the corner.
East and his staff at Central Development Enterprises next wooed Sweetbay Supermarkets, the reincarnation of Kash n' Karry Food Stores.
Supermarkets, though high volume, come with demands for the landlord. You can't lease the neighboring shops to a florist, deli or bakery, for example. Small retailers like them, nonetheless. But Sweetbay, preoccupied with converting the old Kash n' Karrys, didn't pursue the Van Dyke Commons deal.
So East's people started cold-calling.
Bealls made an offer for the anchor spot, setting the stage for a discount apparel center.
But East couldn't see it. Not with household incomes in the surrounding neighborhoods averaging $85,000 and $100,000, double the Florida average.
LA Fitness liked the site, and the two sides warmed up quickly. They hatched a deal in which LA Fitness will build its own center, likely including a lap pool, basketball and racquetball courts, and a balcony running track.
Unlike department stores and supermarkets, fitness centers aren't considered safe-bet anchors. Their members come to work out, not necessarily to shop. And they fill up parking lots, particularly in mornings and evenings.
Lee Roy Selmon's, a soul-food restaurant in the Outback Steakhouse chain, was eyeing the southernmost space in the center, immediately next to the anchor space. Selmon's had been one of the first tenants touted by East.
But Outback executives, who typically seek 125 parking spaces for their restaurants, became worried about LA Fitness, East said. They visited a new LA Fitness in Orlando, at the dinner hour, and saw a lot of parked cars.
Lee Roy Selmon's was out.
Restaurant from scratch
Yet East still considered LA Fitness a winner. It attracts a swarm of affluent, predominantly female members ages 25 to 45, a prime shopping group. His staff courted other retailers catering to the health-minded.
Golfsmith, something of a Sports Authority specializing in golf and tennis equipment, snapped up 20,100 square feet two doors away from LA Fitness. A Planet Beach tanning spa signed.
"The No. 1 reason was that LA was there,'' said Mitzi Cloud of the Planet Beach franchise. "A lot of people like to tan before or after they work out.''
Van Dyke Commons had acquired a personality.
Ace Hardware wanted in.
East said his son Jonathan, who works for him, seemed to sum up their qualms.
"When I go there, I'm hot and sweaty,'' he told his dad. "I want to get a can of paint. I'm not going into any other place.''
Weak cross-shopping. Ace was out.
But East considers plenty of other possibilities harmonious with LA Fitness and Golfsmith.
In the final months of leasing, he is discussing his last two large spaces with PetSmart, CompUSA, Office Depot, ABC Fine Wine & Spirits and Home Goods.
Instead of the Lee Roy Selmon's, the center will be home to Mariposa Grill, a restaurant that -- like its food - is being made from scratch. The creator is Rand Packer of Lutz, who recently resigned as chef at Roy's, the acclaimed fine-dining restaurant in the Outback chain.
Packer said Mariposa Spanish for "butterfly" will specialize in fresh seafood typical of Mexico's Pacific coast. With an emphasis on healthy food, Packer doesn't mind opening a casual 60-seat restaurant next door to a fitness center.
"The demographics around there are just perfect for what we're going to do,'' he said.
Just outside the center, East also has been lining up five free-standing businesses. A Walgreens drugstore has been open for months. A Village Inn is planned next door. AmSouth and Bank of America are building branch banks.
For the fifth spot, East has his eye on Panera Bread.
Pumped for Panera
Why Panera?
It's all about cross-shopping, says Kovacs, who represents both Panera and Home Goods. The restaurant attracts affluent, predominantly female customers for breakfast and lunch, hours when stores are open.
That might explain why East has held off a deal with Congo River Golf, which would build a miniature golf center there. How much shopping do you do after a round of goofy golf?
East has visions of women spending $10 on a Panera lunch, then $100 to accessorize a bedroom at Home Goods, a housewares chain.
At first, Panera wouldn't have much of a business lunch crowd, Kovacs said. But with a St. Joseph's Hospital planned near Kohl's, that should change.
Kovacs is guarded. He likes putting Home Goods next to Panera: That formula was deliberate and successful at Tyrone Square Mall in St. Petersburg.
But he's not so sure Home Goods will approve of LA Fitness as a neighbor. Kovacs tried to pair them at a center in Orlando, and Home Goods declined.
All things considered, he said, "It'd be easier next to a Barnes & Noble.''
Staff writer Bill Coats can be reached at (813) 269-5309 or coats@sptimes.com.
