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Wednesday, February 13, 2008

Projects bring stores to retail-starved areas

SOME OF THE BEST DEVELOPMENT IN THE U.S. IS occurring in the least obvious places.

Examples are Rushmore Crossing in Rapid City, S.D., and East Viking Plaza, in Cedar Falls, Iowa, says the projects' developer, Cincinnati-based Midland Atlantic Properties. Both fill the needs of under served markets for better apparel.

"Flying back from my first trip to Rapid City, I sat next to a woman who was flying all the way to Minneapolis to shop," said John Silverman, Midland Atlantic's managing principal. "At Rushmore Crossing, she will have the quality she's been looking for."

The $110 million project will be located 30 minutes from Mount Rushmore on 120 acres at the intersection of Interstate 90 and LaCrosse Street. The trade area has a population of more than 241,000 with an average household income of nearly $50,000. In addition, more than 4 million tourists visit area attractions, which include The Black Hills, the Badlands, Deadwood and Sturgis.

"They get a lot of people, and those people spend a lot of money," Silverman said.

A traditional retail anchor and a national brokerage firm sparked the developer's interest in the market.

"Target and Katz Associates [New York City] were both very upbeat about Rapid City," Silverman said. "There is no other major shopping within 200 miles."

The power center–lifestyle center hybrid will feature a combination of big-box users and specialty stores. About 600,000 square feet of the 900,000-square-foot project will be dedicated to power tenants. Tenants include Target, T.J. Maxx, Linens 'N Things, Scheels Sporting Goods, Petco, Michaels and Gordmans. The lifestyle center, anchored by Dillard's and situated at one end of the power center, will include Barnes & Noble, Old Navy and specialty stores. Target sits at the midpoint of the power center, and the project's amenities will become more upscale as one approaches a lifestyle component.

Construction began in February 2007. Not surprisingly in a mountainous area, the project has required some major construction work, moving 1.4 million cubic yards of dirt. The power center will open in October, with the lifestyle center opening in March 2009.

Over in Cedar Falls, the 290,000-square-foot East Viking Plaza also will be anchored by Target, its second store in the market. Ground will be broken in March for a July 2009 opening. The $40 million center will contain pioneering retail in the less developed side of the Cedar Falls–Waterloo market. The community center will be dominated by soft goods.

"Traditionally, retail has been located in Waterloo," Silverman said. "But the residential growth, especially the student population, is in Cedar Falls. Cedar Falls has been longing for a Target."

Despite their differences, both projects are ideal for Midland Atlantic, which Silverman and partners Aaron Boyle and Jeff Vittert founded in 1998 after the sale of Midland Group to Regency Centers. The company develops $120 million to $150 million in projects annually.

"We're unique," Silverman said. "We have the capitalization of a much larger group, but with the entrepreneurship of a much smaller group." That means quick reaction times and flexibility with landowners, particularly when anchors need help in a market, he added.

"We are at our best when an anchor is having an issue with a community or a difficult landowner," Silverman said. "We will do everything to creatively resolve the problem. We're nimble and react quickly, and that's why we're developing from South Dakota to North Carolina."

New Projects/January 2008 SCT 87



Midland Atlantic Announces Sale of Renaissance Center

Award Winning Center sold to Chattanooga, TN-based REIT

Durham, NC -- Cincinnati based Midland Atlantic announces the sale of Renaissance Center to CBL & Associates in partnership with Teachers Retirement System of the State of Illinois. The property sold for $90,000,000.

Midland Atlantic developed the project from land acquisition through design and construction. Development began in 2004 and was completed last year. Midland Atlantic was in partnership with Starmount Company which assisted in leasing and managed the property.

Renaissance Center recently won the Triangle Business Journal's award for Best Mixed-Use Development in the region.

The property is a 70-acre mixed-used development featuring upscale retail, restaurants, apartments, and Class A office space. It is located across the street from the Nordstrom anchored Streets at Southpoint Mall. "Our development of the Southpoint area has been a terrific experience; the Renaissance project has a great quality to it that makes it truly timeless," said John Silverman, Managing Principal of Midland Atlantic.

Anchored by REI Sports and Best Buy, Renaissance Center is 93% occupied. The retail section of the project also includes Old Navy, Pier One, Babies R' Us, Linens N' Things, World Market, PF Chang's, Chili's and Ted's Montana Grill. The Class A office area adds 56,000 square feet of space, with a Hilton Garden Inn hotel and 120 apartments anchoring the residential component.

Midland Atlantic is a full-service real estate firm specializing in the development, acquisition, leasing, management and brokerage of retail properties. Midland Atlantic is a leading developer of retail shopping centers in the Midwest and mid-Atlantic regions of the U.S. The firm develops upscale grocery and department store-anchored retail shopping centers, as well as retail build-to-suits. This year commemorates Midland Atlantic's 10th anniversary.



Thursday, February 7, 2008

Midland Atlantic Announces Acquisition of St. Mary's Square

The largest shopping center in St. Mary's, OH

St. Mary's, OH -- Midland Atlantic Development has recently acquired St. Mary's Square, a 253,163 square-foot retail center located off of State Route 33 in St. Mary's, Ohio, northwest of Dayton. SR 33 is a key corridor connecting Ft. Wayne, Indiana and Columbus, Ohio.

The center, anchored by K-Mart, JC Penney and Chief Supermarket, is 88% occupied. Other tenants include Sears, Fashion Bug, Maurices, Shoe Show, Bath & Body Works, Hallmark, GNC, Claire's and Radio Shack.

Built in 1990, St. Mary's Square is the largest shopping center in the trade area. Midland Atlantic is planning improvements to the center including building updates and enhancements along with parking lot improvements. "We were initially drawn to the center due to its dominant presence in the market, its great location and solid existing tenant mix," said Dave Wik, Director of Acquisitions for Midland Atlantic.

St. Mary's Square currently has four in-line vacancies and one vacant outparcel building available for lease. "We will be aggressively marketing the vacant spaces to national and regional retailers and anticipate attracting an exciting mix of retailers to complement the strong list of existing tenants," said Wik.

This is the largest purchase to date for Midland Atlantic's Acquisitions Division, which was formed in May, 2007. This division is focusing on the purchase of grocery-anchored shopping centers in the Midwest, mid-Atlantic and southeast regions of the country. Upon closing, the acquisitions group turns the property over to another Midland division for management and leasing. "By taking responsibility for all facets of a property's operation, we can ensure the highest quality service, ultimately maximizing the value of our investment," said Wik.

Midland Atlantic is a full-service real estate firm specializing in the development, acquisition, leasing, management and brokerage of retail properties. Midland Atlantic is a leading developer of retail shopping centers in the Midwest and mid-Atlantic regions of the U.S. The firm develops upscale grocery and department store-anchored retail shopping centers, as well as retail build-to-suits. This year commemorates Midland Atlantic's 10th anniversary.