Northside's Parkway Shops Nearing Completion

[I-10east]

^^^Thanks for the info. Kinda sound similar like Macy's being that the only one that truly matters is in Manhattan.

[thelakelander]

Another tenant is headed to Parkway Shops. The latest restaurant will be Newk's Express Cafe:

http://jacksonville.com/opinion/blog/423471/gary-mills/2013-02-22/newks-express-cafe-plans-second-jacksonville-location

[FSBA]

Sounds interesting. Between that and BJs it will add some much needed variety to the restaurant scene at RCMP. Now all it needs is a hookah lounge and a craft brew place like Daliah's and I won't need to go to Riverside/Avondale.

[thelakelander]

With River City Marketplace success, new shopping center on its way near JIA

The area around Jacksonville International Airport is getting busier. Driven by River City Marketplace, a new shopping center is opening there. Dick’s Sporting Goods has its grand opening Friday in Parkway Shops. Marshalls, the center’s other anchor, will open next Thursday. It will replace the Marshalls that opened in 2011 in the Highland Square shopping center on Dunn Avenue. That store closes Sunday.

Read more at Jacksonville.com: http://jacksonville.com/business/real-estate/2013-04-05/story/river-city-marketplace-success-new-shopping-center-its-way#ixzz2PbEkJRIo

[tufsu1]

^ so glad Marshall's is closing a store they opened 2 years ago!

[FSBA]

I'm surprised JCPenney hasn't moved from Dunn Ave to RCMP. The complex they're in is getting abit seedy and vacant.

[thekillingwax]

I'm sure they'd like to, but I'm not sure how JCP is sitting financially. From what I heard, their whole "no more sales" thing was a big financial disaster. They'd be a good fit out there but maybe the rent/lease isn't in their range. It's gotta be dirt cheap where they are now, that shopping center is dying a slow death- only thing we ever go out there for is Marco Polo.

I'm happy for the northside getting all this stuff, certainly makes it more attractive to potential residents. One thing I'm honestly a little shocked that hasn't been announced is a Target. I guess there may not be room for it now but I know a lot of people that live out that way and they all say that's the biggest missing store. There's one in Fernandina. I haven't been to the one in Regency in a long time- last time I was there, it was pretty nasty on the inside (by Target standards) and overall looked run-down.

[thelakelander]

Hmm, so JCPenney can't outrun the fate of the shopping center they originally abandoned.....Gateway?  There's more land in the RCMP area if they're willing to pay.

[carpnter]

I'm sure they'd like to, but I'm not sure how JCP is sitting financially. From what I heard, their whole "no more sales" thing was a big financial disaster. They'd be a good fit out there but maybe the rent/lease isn't in their range. It's gotta be dirt cheap where they are now, that shopping center is dying a slow death- only thing we ever go out there for is Marco Polo.

I'm happy for the northside getting all this stuff, certainly makes it more attractive to potential residents. One thing I'm honestly a little shocked that hasn't been announced is a Target. I guess there may not be room for it now but I know a lot of people that live out that way and they all say that's the biggest missing store. There's one in Fernandina. I haven't been to the one in Regency in a long time- last time I was there, it was pretty nasty on the inside (by Target standards) and overall looked run-down.

They did have a Target planned for the northside but most of their new store plans were shelved when the economy took a dump.  They have been remodeling nearly all of their existing stores that aren't SuperTargets and converting them to the current layout.  Red walls, larger market area, etc... All of the regular stores in Jax, including Regency, have been remodeled now. 

[simms3]

I've always felt....and still do...that you can't blame site design on a private company.  Government controls this.  Dick's, CVS, Marshall's, etc. could ultimately care less about suburban vs. urban design, inner city vs. far flung store location, etc. as long as there is a viable market for them to do business in and their costs are the same.  Here, it's simply more difficult to put together a multimodal friendly site plan than the autocentric stuff the city's land use and zoning regulations promote. If you want change, it all starts at the local level, imo.

Nobody will consider that site urban, though.  I agree with you overall, but these nationals have store formats that work depending on the site...We have both urban and suburban Ross's in our portfolio, among other stores (we are getting ready  to do the first ever urban Michaels in one of the busiest pedestrian intersections in the country and it's a real challenge educating them on how it works differently than they are accustomed in strip centers such as above).  The Northside as a submarket is bottom barrel super high risk limited return prospect type market...no retailer or developer in their right mind would try something new there.

FYI costs to do urban retail are magnitudes higher than suburban.  Our NNNs for urban format stores across our portfolio are easily 2-10x higher than the same store in a suburban strip or mall format.  While maybe not the case in Jax, typically taxes on a mixed-use urban building are exponentially higher than taxes on a suburban strip (and I'm sure the city of Jax would assess a nicer urban format development higher than this strip unless they are one of the few cities that actually looks at income in their assessment rather than cost).

Marshalls may have a sales threshold target for a place like the Northside of $150psf on an occupancy cost of 10% (occcupancy cost being rent + NNNs + percentage rent, basically what they pay to LL).  Increase development costs and you then increase the rent you must charge, 99% likely the NNNs too and their sales threshold then increases, which creates the likelihood that they no longer consider a depressed market like the Northside.

[I-10east]

The Northside as a submarket is bottom barrel super high risk limited return prospect type market...no retailer or developer in their right mind would try something new there.

Gander Mtn?

[I-10east]

I've seen FAR worse than the Dunn Ave Shopping Center. It's actually pretty solid occupancy-wise with many stores still out there. Beall's, Citi Trends, It's Fashion Metro, JCP, Winn Dixie, Hibbett Sports and not to mention and of those smaller stores. It's not exactly the SJTC, but far from Gateway. I guess if alot of stores in a mall isn't all high and mighty upscale, the entire complex is deemed 'seedy'. I don't hear about a helluva lot of crime happening out there.

[simms3]

The Northside as a submarket is bottom barrel super high risk limited return prospect type market...no retailer or developer in their right mind would try something new there.

Gander Mtn?

Ramco-Gershenson, who I worked with in my previous job, got in early,  plopped down a cookie cutter standard regional shopping center with floater/outparcel opportunities on cheap land.  They saw an opportunity to develop this retail at a low enough basis to charge low enough rents to attract these retailers to the area, which happens in any area's underperforming submarkets.  Note that where Gander Mtn is also pulls from higher income Nassau/Camden, even Westside Jax (easier to get to than SS or St. Aug).  The stores up there are targeting a very low sales $/person in contrast to what they would target in say the SS or SJC.  It's a underperforming market and everyone knows that, just have to build accordingly.

At first I actually thought these Parkway Shops were further "in" the Northside when I read Dunn Ave...now it's totally obvious that this is as suburban a location as it gets (was reading people's comments clamoring for more "urban" design).

[fieldafm]

bottom barrel super high risk limited return prospect type market

Umm, no. 


RCMP has a better $/sq ft than everything but about 7 similar strip mall/regional malls in Jax.  And that covers a lot if very profitable development around town.   

Plus, the City issued over 300 million in bonds to build the infrastructure to support the regional shopping center.  It isn't super high risk. 

I'm not saying RCMP is something the City should subsidize (which they do and lose money on), but your characterization of 'bottom barrel' is not accurate.