MEETING of the MINDS” Different Perspectives for Making the Right Decisions Mall Property Group
“MEETING OF THE MINDS” Different Perspectives for making the Right Decisions Mall Property Group
West Philly Mall
Prepared for Target
October 2013 West Philly Mall - Overview • 615,000 SF; 2 Anchors • $400/SF • Macy’s - One of top performers in region • Vacant anchor due to department store consolidation, not performance
Baltimore Pike
West Philly Mall
Macy’s Future Target
3 West Philly Mall - Performance Top Small Shop Performers • The Gap – 35th Percentile for Portfolio • Finish Line – 18th Percentile • The Gap Kids – 15th Percentile • The Children’s Place – 12th Percentile • Build A Bear – 18th Percentile • Coach – 50th Percentile • Gymboree – 12th Percentile • Express – 30th Percentile • Chico’s – 42nd Percentile • Victoria’s Secret – 44th Percentile • LOFT – 35th Percentile th • Hot Topic – 46 WashingtonPercentile Pike
4 West Philly Mall – Location & Access • Located at Corner of Baltimore Pike (37,000 ADT) and W Sproul Rd (16,000 ADT) • Direct Access from Both Roads • Less than one miles from I-476 (97,000 Cars Daily) • Convenient Access from a Large Trade Area
Potential
Access
5 West Philly Mall – Trade Area
Large, Affluent Trade Area
West Philly Mall -- 379,000 Person Trade Area -- $77,000 Avg HH Income
Dense, Affluent Nearby Washington Pike Population Base
-- 119,000 People within 3 Miles -- $92,000 Avg HH Income
-- 335,000 People within 5 Miles -- $81,000 Avg HH Income
6 West Philly Mall – 5 Mile Radius • Ranks 2nd out of 25 Target stores in portfolio for 5 mile population • Ranks in top 11% of all Target stores for 5 mile population
2012 Total % 2012 % 2012: 2012 Total 2012 Total 2012 Avg HH 2012 Avg 2012 Median Daytime Bachelor's Graduate Population Households Inc Home Value Age Site Name Population Degree Degree Westminster Mall 509,330 466,759 161,428 $89,013 $600,279 38.7 19.20% 8.70% West Philly Mall 336,214 306,918 129,220 $81,172 $247,193 39.4 18.60% 12.60% Richardson Square 335,753 397,371 124,506 $76,587 $190,489 34.0 23.8% 12.3% South Shore Plaza 252,318 239,548 101,641 $85,521 $402,429 39.9 23.00% 12.90% South Hills Village 229,364 200,587 99,237 $79,594 $172,737 Washington43.6 Pike25.10% 14.90% Sawgrass Mills 210,585 208,026 81,595 $82,677 $318,689 39.5 23.00% 13.10% Waterford Lakes Town Center 195,995 161,991 64,885 $68,865 $256,663 28.4 23.8% 11.5% Liberty Tree Mall 190,747 229,060 77,692 $86,707 $405,959 42 22.50% 14.10% The Esplanade 170,567 174,321 68,387 $71,105 $231,227 39 18.10% 8.40% Colorado Mills 164,115 196,047 69,796 $78,596 $311,437 40.6 24.70% 14.00% St Johns Town Center 151,600 212,241 61,974 $72,936 $247,036 32.7 24.00% 11.70% Empire East 135,848 162,566 53,958 $69,536 $189,894 33.6 23.00% 10.50% Chesapeake Square 134,525 119,298 50,190 $71,516 $267,123 36.7 16.20% 9.00% Mall Of Georgia 131,120 126,157 42,060 $90,875 $251,088 35.1 26.50% 10.20% Washington Square Mall 130,566 134,301 49,754 $53,532 $126,883 33.9 12.50% 5.50% Northwood Plaza 125,810 166,618 51,981 $63,442 $143,281 34.8 17.60% 10.60% Rockaway Town Plaza 107,186 113,469 38,884 $111,761 $447,404 40.1 26.00% 13.80% Pheasant Lane Mall 105,320 113,844 41,096 $84,848 $310,495 38.9 20.80% 11.70% College Mall 99,178 111,609 38,964 $52,176 $209,332 24.7 25.00% 27.90% West Ridge Plaza 92,568 118,198 40,679 $66,025 $142,955 38.2 22.70% 13.30% Coconut Point (CC) 70,540 77,508 30,672 $90,501 $407,374 52.6 19.5% 12.8% Mesa Mall 67,835 94,817 27,407 $70,709 $303,481 39.8 20.90% 12.00% Markland Mall 64,857 80,375 27,584 $55,938 $118,464 39.9 10.60% 7.90% Wolf Ranch Town Center 51,840 51,472 17,885 $85,389 $204,167 35.1 24.2% 11.8% Pier Park 16,250 21,710 7,155 $66,716 $287,497 41.0 16.7% 9.7%
7 West Philly Mall – Existing Target Locations
West Philly Mall
Washington Pike
8 West Philly Mall – Why Target? Existing store is just one mile away… • Older Unit (1997) • Small (120,000 SF) • Undesirable Layout (Two-level Un-even stack in old department store) • Poor access and parking (Especially off of Baltimore Pike)
Washington Pike
9 West Philly Mall – Why Target? Existing store…
Washington Pike
10 West Philly Mall – Better Location for Target
• No other Target within 10 Miles – Opportunity to Meet Demand for a Bigger Store • Ability to Build a Brand New Store - Most Current Design and Layout • Great Access – Traffic Light Entrances off of both Baltimore Pike and Sproul Rd • Ample Parking – In front and back • Closer to I-476 – Expands Trade Area to the higher incomes to the west
• Attached to a Strong, Popular Regional Mall Washington Pike
$$$ Nearest Store 10 Miles New Store Existing Store
11 West Philly Mall – Future Target Rendering
Washington Pike
12 One WeekOne Later
13 TO RELO OR NOT TO RELO: THAT IS THE QUESTION 14 1) . . What What is performance of the existing Philly A store? But, is not a prototypical box and it has an odd layout. layout. odd hasand it an is a box prototypicalBut, not performer salesis a strong Store
15 2) . . Where Where do existing and desired guests live? Better incomes are located to the west the to incomeswest arelocated Better I- 476 WestPhilly Mall Site freeway creates a barrier for customer for a barriercustomer freewaycreates 3 mi3 Philly Store A
16 3) . What is remaining What is remaining sales potential in sector? Current sales per capita vs. potential sales per capita per sales potential vs. capita per sales Current
17 3 KEY CONSIDERATIONS:
1) What is performance of the existing Philly A store? . Store is a strong sales performer . But, is not a prototypical box and it has an odd layout.
2) Where do existing and desired guests live? . I-476 freeway creates a barrier for customer . Better incomes are located to the west
3) What is remaining sales potential in sector? . Current sales per capita vs. potential sales per capita
18 WHAT IS THE BEST ANSWER? 19 THE REST OF THE STORY…
. Building a second store offered relief to existing location.
AND
• Maximized sales penetration in the trade area while protecting market share. 20 DOWNTOWN PHILLY – CONVENIENCE STORE STRATEGY REAL ESTATE MGR ESTATE REAL 3 4
You are here
2 2 1 ‘CONVENIENCE’ STORE GROWTH OPPORTUNITIES – OPPORTUNITIES GROWTH STORE ‘CONVENIENCE’
– DOWNTOWN PHILLY PHILLY DOWNTOWN You are here S S
NORTHWEST OF CITY HALL CITYOF NORTHWEST – 1 WEST MARKET OFFICE DISTRICT DISTRICT OFFICE MARKET WEST You are here S S
SOUTHWEST OF CITY HALL CITYOF SOUTHWEST – 2 RITTENHOUSE SQUARE AREA AREA RITTENHOUSESQUARE S S NORTHEAST OF CITY HALL CITYOF NORTHEAST – 3
You are here EAST MARKET AREA AREA MARKET EAST SOUTHEAST OF CITY HALL CITYOF SOUTHEAST – S S 4 4
You are
here WASHINGTON SQUARE AREA AREA SQUARE WASHINGTON LATER THAT WEEK – IN THE MARKET RESEARCH DEPARTMENT RESEARCH MGR RESEARCH 3 4
You are here
2 2 1 ‘CONVENIENCE’ STORE GROWTH STRATEGY – STRATEGY GROWTH STORE ‘CONVENIENCE’
– DOWNTOWN PHILLY PHILLY DOWNTOWN
You are
1 1 here S S
District District
Train Station, City Financial Hall, Station, Train
Other Business Generators: Generators: Business Other
Office (Daytime) Pop: 54,443 Pop: (Daytime) Office
Population: 3,241 Population: WEST MARKET OFFICE DISTRICTOFFICE MARKET WEST
You are here 2 S S
Restaurants, Hotels Restaurants,
Shopping Shopping on Chestnut,
Other Business Generators: Generators: Business Other
Office (Daytime) Pop: 37,310 Pop: (Daytime) Office
Population: 9,807 Population: RITTENHOUSE SQUARE RITTENHOUSESQUARE 3 3 S S
You are here
Mall, Bus/Train, Tourism, Conv. Center Center Conv. Tourism, Bus/Train, Mall,
Other Business Generators: Generators: Business Other
Office (Daytime) Pop: 20,713 Pop: (Daytime) Office
Population: 3,699 Population: EAST MARKET RETAIL RETAIL MARKET EAST WASHINGTON SQUARE SQUARE WASHINGTON 7,190 Population: 22,590 Pop: (Daytime) Office Other Generators: Business Shopping, Hospital/Medical S S 4 4
You are here QUESTIONS - WHAT ELSE DO YOU WANT TO KNOW? 3 3 4 S S WASHINGTON SQUARE SQUARE WASHINGTON 7,190 Population: 22,590 Pop: (Daytime) Office Other Generators: Business Shopping, Hospital/Medical
Population: 3,699 Population: 20,713 Pop: (Daytime) Office Generators: Business Other Center Conv. Tourism, Bus/Train, Mall, EAST MARKET RETAIL RETAIL MARKET EAST S S
You are here S S
S S
2 1 1 ‘CONVENIENCE’ STORE GROWTH GROWTH STORE ‘CONVENIENCE’
–
DOWNTOWN PHILLY PHILLY DOWNTOWN
Restaurants, Hotels Restaurants,
Shopping Shopping on Chestnut,
Other Business Generators: Generators: Other Business
Office (Daytime) Pop: 37,310 Pop: (Daytime) Office
Population: 9,807 Population:
RITTENHOUSE SQUARE SQUARE RITTENHOUSE
District District
Train Station, City Financial Hall, Station, Train
Other Business Generators: Generators: Business Other
Office (Daytime) Pop: 54,443 Pop: (Daytime) Office
Population: 3,241 Population: WEST MARKET OFFICE DISTRICTOFFICE MARKET WEST MORALS OF THE STORY
All four sites can work depending on the business generators you are targeting . . . so real estate was kind of right
However, it is a risky new market entry for this convenience player and they probably should prioritize. Rittenhouse square is probably the best positioned to capture the most business.
That said, depending on the economics of the deal that might present a challenge. Chestnut in Rittenhouse Square is an expensive street to get a sizeable space