Monday, October 4, 2010

Holland Town Center - Time For a Change

HOLLAND TOWNSHIP -- With occupancy of the Holland Town Center at less than 50 percent, the owners of the Holland Township retail property felt it was time for a change.
With cooperation from its neighbor to the west, Nelis' Dutch Village, construction is under way on a new two-lane road that will not only serve two of the center's main tenants -- the Gap and Carter's Children's Wear -- but mark the start of a transformation of the Town Center into a mixed-use property that eventually will include offices, restaurants and possibly uses such as research and development.
As a result, however, the Dutch-themed drawbridge that connected the Town Center to Dutch Village is being taken down. The drawbridge will be replaced by a standard pedestrian bridge, to be built using recycled materials from the drawbridge, that still will connect the two properties, said Joe Nelis, president of Dutch Village.
"We think it'll create a little excitement, to re-energize the center and get some potential tenants," Nelis said.
Holland Town Center, which was built in the late 1980s and originally known as Manufacturers Marketplace, enjoyed initial success as an outlet mall. But as shopping patterns changed and more people began using the Internet to shop, outlet malls faded in popularity. The Town Center soon found itself with more vacant spaces than tenants.
Enter SugarOak Holdings Inc., a Herndon, Va.-based real estate development firm that acquired the 215,000-square-foot Town Center last year from Horizon Group at a cost of more than $2.7 million. The company specializes in redeveloping former outlet malls into mixed-used properties. "Usually, (outlet malls) couldn't sustain themselves, as far as occupancy was concerned," said Andy Walsh, SugarOak vice president of sales and leasing.
The company has had success redeveloping a former outlet mall northeast of Indianapolis into a mixed-used property, and Walsh believes the Town Center's location near U.S. 31 makes it an attractive property for redevelopment. "Locationally, it's fantastic," he said.
SugarOak has renewed leases with the Gap and Carter's, and hopes to retain other businesses in the center, such as Harvest Antiques, a 20,000-square-foot antique mall, and the Lost City, a popular "laser tag" amusement center. But the company is also changing how it offers space to potential clients, by giving them the option to buy space under a condominium-type arrangement.
"It's essentially a move-in ready product," Walsh said. "You can walk in, turn on the lights and operate tomorrow."
Besides retail, Walsh hopes to attract other uses to the center, including offices, light medical uses such as chiropractic centers, and possibly research and development firms.
Meanwhile, Joe Nelis is hopeful a revitalized Town Center will help draw additional business to Dutch Village, an attraction that has been an anchor at the southeast corner of U.S. 31 and James Street for more than a half-century.
"(Shoppers) will be able to look at the heart of the theme park and see what we've done the last three to four years to make it more kid-friendly and family-focused," Nelis said.
Some parts, such as the counterbalance from the old drawbridge, could end up being used at another Dutch-themed attraction: Holland's Windmill Island Gardens. Nelis has approached island officials about the idea.
Construction on the new road and nearly 100 parking spaces that will go along with it are expected to be completed by Thanksgiving, Walsh said.

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