Developer reusing former Macy’s stores
A Chattanooga-based real estate development company is expanding its footprint into the Southeast where it’s buying former mall department store space and transforming it for other uses.
“I foresee the mall as being the land of opportunity,” said Jimmy White, co-owner of Urban Story Ventures.
White, whose company already owns the former Alstom plant and the James Building among other Chattanooga properties, said the firm has bought four former Macy’s stores at malls and it’s eying more such acquisitions.
He said the vacant Macy’s locations are in Florida, Texas and Tennessee, where the company bought the store space at Rivergate Mall in Goodlettsville outside Nashville.
One of the Macy’s purchases is at a Daytona Beach, Florida, mall owned by Chattanooga shopping center giant CBL Properties, White said. But that’s the only CBL mall where White’s group has made an acquisition, he said.
A number of mall companies are struggling amid the pandemic as people socially distance and shop online. CBL last November filed for Chapter 11 bankruptcy reorganization after its malls were hit by the coronavirus lock down earlier in the year and later with slower traffic.
White said the department stores are located in or around mid-tier cities where he believes people are moving to from larger metro areas.
“COVID accelerated trends,” he said, adding that’s something from which Chattanooga is benefiting.
The Chattanooga businessman said retail also is swiftly changing. While the pandemic has hurt some retailers, other are gaining, he said. White cited grocery stores, wholesale clubs and home improvement retailers.
In addition to retail opportunities, the department stores also are seeing new uses as offices, particularly for medical space, he said. White said that while many people are working from home, those employees coming into the office need more space because of social distancing.
“I foresee the mall as being the land of opportunity.” – JIMMY WHITE, CO-OWNER OF URBAN STORY VENTURES
“Considering the changing trends in the office industry, our team is adjusting our approach to accommodate the needs of businesses and employees for a post-pandemic world,” he said.
White said many malls are in “great locations” and there’s already infrastructure such as roads in and around those centers.
“We’re able to piggyback off existing infrastructure,” he said. “There are excellent opportunities in some of the old malls.”
Even before the pandemic, CBL was transforming its malls into suburban town centers.
Stephen Lebovitz, the company’s chief executive, said the company had opened over 1.4 million square feet of new retail, dining, and other space — including a casino — in 2020.
During this year, Lebovitz said officials see more leasing to unique users to renew its centers.
“I see a bright future for the company and for the properties,” he said about CBL, which operates more than 100 properties in 26 states including Hamilton Place and Northgate malls in Chattanooga.
Urban Story Ventures’ portfolio now has 23 buildings and about 2 million square feet in the Southeast. The company has more than 180 tenants in its properties, which it said are operating a near full capacity.