VOLUME 24 NUMBER 14 JULY-SEPTEMBER 1994 RETAIL SHOPPERS PENN DAW PLAZA ALEXANDRIA, VIRGINIA PROJECT TYPE A fully renovated 132,203-square-foot neighborhood shopping center located along Route 1 in Alexandria, Virginia. The project's two anchor stores were constructed over and around an operational bowling center. Twelve smaller specialty, service, and food retail users round out the mix. The Plaza's innovative design is as attractive as it is functional. SPECIAL FEATURES Dual primary entrances for major grocery anchor All-brick column, signband, tower, and arch elements Signature clock tower featuring two backlighted clocks Extensive site landscaping and directional signage Two interparcel pedestrian trails to neighboring apartment complex DEVELOPER Combined Properties Incorporated 1899 L Street, N.W., Suite 900 Washington, D.C. 20036 202-293-4500 ARCHITECT Rounds VanDuzer Associates, Ltd. Falls Church, Virginia 703-533-3577 GENERAL CONTRACTOR L.F. Jennings, Inc. Falls Church, Virginia 703-241-1200
GENERAL DESCRIPTION Shoppers Penn Daw Plaza epitomizes the transformation of a well-positioned but obsolete strip shopping center into a vibrant, dynamic community marketplace. Combined Properties Incorporated, the owner and developer of the project, encountered a zoning obstacle early on that could have jeopardized the potential of the Plaza. The project team responded with an innovative design that resulted in an architecturally and functionally elegant use of space. Today, the 132,203-square-foot Plaza is the most prominent retail center on Route 1 in Alexandria, Virginia. The success of Shoppers Penn Daw Plaza is perhaps best demonstrated by tenant sales, which have skyrocketed from an average of $50 per square foot to $360 per square foot. THE SITE AND BACKGROUND Combined Properties takes a long-term approach to business. It has developed nearly 40 neighborhood and power shopping centers in the Washington, D.C., area, all of which it has retained for its own portfolio. In 1990, the existing Penn Daw shopping center had all the characteristics of a center ripe for change. It was in a good location eight miles south of Washington, D.C., along the well-traveled, heavily populated Route 1 corridor of Alexandria, Virginia but was performing far below its potential. The architecture was mundane and outdated, and the buildings were aged and in need of repair. The major tenant and most prominent structure was a 30-year-old domed bowling center that was still a popular community attraction but did little to promote the other tenants. Fantle's Drugs had been the other anchor store until 1989, when the drug store chain went bankrupt and the space became vacant. After Fantle's departure, consumer traffic in the center declined, and the existing merchants were suffering from extremely low sales volumes. The center was struggling to remain viable with an alarmingly high 40 percent vacancy rate. A careful evaluation of the trade area surrounding the existing shopping center indicated a strong demand for value-oriented food and drug retail. Combined Properties proceeded to execute leases with two new anchor stores, Shoppers Food Warehouse and CVS/Pharmacy, rounded out by a complementary mix of service, specialty, and restaurant tenants. A number of the smaller tenants today, such as Super Trak, Crown Books, Erol's Video Club, and Murry's Steaks, were also tenants before the renovation. The new Plaza was completely preleased before construction, virtually eliminating speculative risk. PLANNING AND DESIGN Zoning for the site dictated that there was very little additional building space available. Approximately 40 percent of the 10.5-acre site lies in a residential zone, and construction for the renovation was limited to the commercially zoned area. After obtaining a special exception for redesigned parking in the residential zone, the project team faced the challenge of designing and constructing two retail anchors totaling more than 65,000 square feet around and partially over the existing 38,000 square-foot bowling center. The postexpansion gross leasable area of 132,203 square feet is a net addition of about 25,000 square feet. Combined Properties chose to retain the Alexandria Bowling Center even though it posed a significant design challenge and is a somewhat unconventional neighborhood shopping center tenant. It had been a source of family entertainment for two generations of local residents and was still a popular destination. The project team sought to integrate the bowling center into the Plaza so that it was not the predominant visual focus and would not interfere with the accessibility of the other establishments. They hoped to keep the same families coming to the Plaza to bowl and encourage them to shop there as well. The final design produced a dual entrance concept for Shoppers Food Warehouse, with customer parcel pickup on both sides of the store. This feature eliminates the usual peak-hour tangle of customers loading groceries at the storefront as others try to enter and exit the parking lot. In essence, the design created two front entrances to the Plaza with no rear at all.
Two abundant parking fields provide access to the entrances and together accommodate over 600 cars. Before renovation, the entrance to the bowling center was below grade in front of the shopping center and at grade in the back. No structural changes were made to the bowling center itself, but much of what was formerly its back facade was filled in, making this entrance one level below the entrance to the supermarket. The dome of the bowling center remains intact but is hidden by the new facades. The Plaza's graceful architecture and all-brick construction exemplify Combined Properties' long-term retail perspective. Prominent tower elements, one of which includes two backlighted clocks; standing seam metal roofs; handsome parapet railings; and enhanced undercanopy and parking lot lighting highlight the project's facades and invite customers into the Plaza. The Plaza enjoys the best of both worlds in that it is a landmark on busy Route 1 and is also well incorporated into the surrounding Penn Daw neighborhoods. Before the first shovel entered the ground, Combined Properties embraced the local community and civic associations by explaining the scope of the Plaza renovation and reacting to their concerns. Merchants, new and existing, participated in and contributed to the design and planning of the project. Two interparcel pedestrian trails link the Plaza to a neighboring apartment complex. The widening of Poag Street along the Plaza's eastern boundary has benefited homeowners by providing safer and more convenient access to their homes. CONSTRUCTION Combined Properties believes that project success can be virtually guaranteed with thorough plan review, partnering with tenants and contractors, and attention to detail during construction. This strategy worked well for the $7 million, eight-month renovation of Shoppers Penn Daw Plaza. An aggressive construction schedule and strict budget control helped the project surpass all financial expectations. Combined Properties planned carefully to minimize the inherent difficulties of carrying out the construction while keeping the existing center operational. The nature of the design presented some unusual challenges. The new grocery anchor, for example, was built partially over the operational bowling center and partially on a slab on grade over an unused portion of the existing parking lot. Directly over the bowling center's main entrance, the entrance to Shoppers Food Warehouse is supported on an elevated slab with a floating architectural sidewalk. During the rainy construction period, innovative methods were devised to keep water out of the bowling center while maintaining the fast-track construction schedule. The project team sought to keep both merchants and customers focused on the future benefits of the renovation. Trash removal and delivery requirements were coordinated with merchants before the start of the project, eliminating potential operational conflicts. A phasing plan for paving was implemented to facilitate customer parking convenience. The widening of Poag Street provided yet another operational challenge for the team. By designing and implementing temporary parking and traffic patterns, using temporary signage, the developer minimized disruption resulting from the road construction. EXPERIENCE GAINED An effective project team made up of the owner, architect, contractors, and existing merchants fostered efficiencies and creativity throughout the entire renovation process. Open communication, meticulous planning, and painstaking attention to detail are essential characteristics of such a team. Establishing a proactive relationship with the surrounding neighborhoods should be one of the highest priorities in the development or redevelopment of a retail project. After all, the success of a neighborhood shopping center depends entirely upon how effectively it appeals to its community.
Preleasing a shopping center reduces speculative risks and helps identify construction costs. Designing the tenants' space in advance eliminates duplication and construction unknowns.
PROJECT DATA LAND USE INFORMATION Site Area: 10.45 acres Gross Leasable Area (GLA): Before renovation: 106,682 square feet After renovation: 132,203 square feet Floor/Area Ratio (FAR): 0.29 Number of Levels: Partial 2-level Total Parking (All Surface Spaces): Before renovation: 650 After renovation: 660 LAND USE PLAN Before (Acres) After (Acres) Percent of Site Buildings 1.81 2.16 21% Paved areas (surface parking/roads) 6.44 5.98 57 Landscaped areas 2.20 2.31 22 Total 10.45 10.45 100% RETAIL INFORMATION Classification Number of Stores Percent of Total Total GLA (Square Feet) Percent of GLA Food 3 22% 59,362 45% Restaurant 2 14 2,265 2 Automotive 1 7 6,241 5 Hobby/special interest 3 14 7,655 5 Drugs 1 7 11,400 9 Personal services 3 22 6,417 5 Recreation/community 1 7 38,132 28 Financial 1 7 731 1 Total 15 100% 132,203 100% Total Number of Stores before Renovation: 10 Average Length of Lease: 5 to 10 years Typical Lease Provisions: Triple net pass-through (CAM, insurance, taxes) Annual Rents: Before renovation: $9 to $20 per square foot After renovation: $12 to $23 per square foot
Average Annual Sales: Before renovation: $50 per square foot After renovation: $359 per square foot REDEVELOPMENT COST INFORMATION Site Improvement Costs On-site $1,173,421 Off-site 282,630 Total $1,456,051 Construction Costs Building shell $2,742,712 Building interior 1,715,307 Relocation/tenant allowances 49,827 Total $4,507,846 Soft Costs Architecture/engineering $547,141 Marketing 2,645 Legal/accounting 47,487 Permits and fees 90,832 Construction interest and fees 710,480 Total $1,398,585 Total Redevelopment Cost $7,362,482 Total Redevelopment Cost per GLA Square Foot: $56 ANNUAL OPERATING EXPENSES (1993) Taxes $100,000 Insurance 9,000 Maintenance 136,000 Utilities 31,000 Legal 21,000 Management 86,000 Miscellaneous 5,000 Total $388,000 DEVELOPMENT SCHEDULE Site Purchased: Summer 1982 Planning Started: Winter 1990 Approvals Obtained: Spring 1992
Construction Started: Spring 1992 Releasing Started: Winter 1990 Project Completed: January 1993 DIRECTIONS From Washington National Airport: Take the George Washington Parkway south toward Alexandria. Make a right onto Slaters Lane, which eventually merges with U.S. Route 1. After crossing over the Capital Beltway (495), continue approximately 1.5 miles to Shoppers Penn Daw Plaza on the right. The plaza is located at the intersection of North and South Kings Highway and U.S. Route 1. Driving Time: Approximately 20 minutes in non-peak traffic. The Project Reference File is intended as a resource tool for use by the subscribers in improving the quality of future projects. Data contained herein were made available by the Development team and constitute a report on, not an endorsement of, the project by ULI - The Urban Land Institute. Copyright 1994, 1997, by ULI - the Urban Land Institute 1025 Thomas Jefferson Street, N. W. Ste. 500w, Washington, D. C. 20007-5201
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