Square’s reinvention not done with Costco opening
With new retail concept, Niagara Square continues to attract tenants
Niagara Square’s new era may be anchored by Costco, but the redevelopment of the Montrose Road property won’t stop there.
Officials with Bayfield Realty Advisors, which owns the nearly 37,120-squaremetre property in the growing southwest end of the city, said the transformation to its contemporary new concept will continue to see new openings in the coming months.
When the enclosed mall area of Niagara Square closed in 2017, it was viewed as the end of an era.
The mall, which opened in 1977, had been losing tenants, with less than 30 per cent of the 83 units occupied leading up to the shopping centre’s closure.
But now, with Choom Cannabis Co. and a new medical clinic having opened in buildings with outdoor access on the property, and Costco opening a 14.430square-metre warehouse Saturday, officials are celebrating the dawn of a new era.
Bayfield, which is a manager and developer of commercial and multi-family real estate across Canada on behalf of a private equity, purchased the Niagara Square shopping centre, together with
RioCan REIT, in 2010.
The property was a hybrid retail centre of about 36,230 square metres, comprised of about 16,720 square metres of enclosed mall and 19,510 square metres of large-box retailers and pads, including a Cineplex movie theatre.
It became apparent to Bayfield in 2016 that the retail concept of the shopping centre, as it then existed, was not sustainable, said Ron Perlmutter, chief investment officer with Bayfield.
Bayfield purchased the interest of RioCan in the property and developed a strategy for the conceptual reinvention of the shopping centre, he said.
The retail model to be adopted was that of a “well anchored, service oriented, easily navigable modern open format retail centre,” which would include a number of successful destination retailers, said Perlmutter.
The project involved the demolition of the enclosed mall portion of the property, the renovation/construction of an additional 6,500 square metres of inline space and pad buildings, as well as planning for enhanced pedestrian and vehicle traffic circulation.
“In addition, if the project was to be successful, it required bringing a large, popular retail anchor to the site and the retention of the existing successful large-box retailers and the two banks who were tenants of the enclosed mall,” he said.
Perlmutter said Bayfield attracted a “large and important retailer” — Costco — to anchor the site, which would also attract additional popular tenants to the property.
He said Dollarama and Giant Tiger stores will occupy new 930- and 2,555-square-metre stores, respectively, expected to open during the first quarter of 2021.
The Bank of Montreal and CIBC, which were tenants of the enclosed portion of the former shopping centre, have been relocated to drive-through pad buildings in the parking area on the QEW side of the property.
Bayfield also built a 2,320square-metre store for Winners, which was a popular store in the former shopping centre and is in the process of completing an 740-square-metre addition to the existing 1,860square-metre Brick store.
Other tenants which are remaining on the site and which will “enhance the merchandise offering” of the centre are Michaels, Jysk and World Gym.
Mandarin will also remain on the property, and “new restaurants will be coming,” said Perlmutter.
“And, of course, the premier movie theatre of the Niagara region, the Cineplex multiplex, will continue to be an important tenant and destination for the shopping centre,” he said.
Perlmutter said while the Hoops sports bar and restaurant has closed, Bayfield is in discussions with “a few different food operators” to open another establishment in that standalone building.
That area of Montrose and McLeod roads has been home
to other successful developments over the years.
Lowe’s opened across the street, anchoring a strip mall on McLeod Road. The Walmart super store opened on the other side of the QEW, anchoring a strip mall on Oakwood Drive. A residential boom came to the southwest end of the city, and a new south Niagara hospital is scheduled to open nearby in 2026.
“We certainly endorse what we are doing, and our leasing has progressed very well with really a minimal amount left to be leased,” said Perlmutter.
“Nothing speaks louder to the choice nature of its location than the tenants who are choosing to locate or even relocate with us.”
Serge Felicetti, the city’s director of business development, said it’s “fantastic” to see the redevelopment of Niagara Square, crediting Bayfield for its commitment to the site.
“They committed to us that they were going to invest millions into the property,” he said.
“We have worked closely with them and they’ve got some plans — they’re not finished yet, so it’s wonderful to see.”
Mayor Jim Diodati said Niagara Square has undergone a “rebirth,” which he credited, in
large part, to the efforts of the city’s business development department.
He said when Bayfield came to city officials and said the old mall wasn’t working out, there was initial talk about demolishing it to make way for residential development.
But Diodati said it was important to keep the property as a retail node.
“The unfortunate part is Niagara Square was 30 years ahead of its time,” he said, adding now is when the south-west end of the city is experiencing “explosive” growth.
Diodati said city officials told Bayfield they would help them find an anchor tenant for a remodelled retail property.
“We proactively phoned a number of companies and had discussions with the senior people at a number of companies and we had a great connection with Costco,” he said.
“We convinced them to come down and let us take them on a tour and show them what was about to happen in Niagara Falls. We showed them the opportunity and the rest is history.”