South Meadow Square Construction Update, 8/2018

6 08 2018

It looks like the new south retail endcap is using a standard EIFS (Exterior Insulation Finishing System) for the exteriors. EIFS, also known as synthetic stucco or by the brand name Dryvit, is a pretty common choice for commercial builds. Readers might remember when it was used with the Holiday Inn Express built a couple of years ago on Elmira Road. Over the plywood there’s a dark grey moisture barrier. This is being overlaid with an adhesive and insulation board, which will then get a reinforcing mesh, base/scratch coat, and a finish coat. Drainage cavities are then built over the barrier to allow water that has penetrated the surface to exit the wall without wrecking it (a big problem with early EIFS systems).  The north endcap looks like it already has insulation boards in place, as well as a base coat for the primary moisture barrier, and a white coat that might be a primer for the finish coat. New curbing, lighting and a fire hydrant have been installed.

Although the south endcap is 14,744 SF, the listing on commercial real estate website Loopnet says there are two spaces, one about 15,000 SF, and a second 3,400 SF. The property doesn’t show a 3,500 SF space, and the north endcap is 7,315 SF, so it’s not clear what that refers to. It could be the 3,200 SF space that is planned for a the pad parcel next to Firehouse Subs, but that hasn’t started yet. If that is the case, however, that implies Benderson Development may have a tenant under contract for the north endcap that they just haven’t yet announced.

 

 





South Meadow Square Construction Update, 6/2018

18 06 2018

The new endcap spaces on the former KMart (now Hobby Lobby) Plaza at 742-744 South Meadow Street. The first set of photos are the northern endcap with 7,315 SF of retail space, next to PetSmart. The southern endcap is a 14,744 SF space being built where K-Mart’s garden center used to be, which I think explains the huge chunks of concrete slab piled out in front.

With no tenants formally announced, these spaces will not be completely finished on the inside – all utilities will be in as well as structural supports and insulation, but the space will be fitted out to the needs of the tenants, so things like flooring, fixtures and interior finishes will wait until someone has signed a lease with Benderson Development. I did not see anything on file for a fit-out in the city of Ithaca’s building permits paperwork (however, I did see last week that Elmira Savings Bank landed an unnamed tenant for its second floor office space at 602 West State Street).

Oftentimes you’ll see retail real estate managers try to find tenants that complement each other, say a salon and a cafe, or a sporting goods store with a women’s clothing store (the somewhat sexist argument there is that the ladies go to one while their male partners go to the other). Increasingly, entertainment and recreation options are becoming tenants – take for instance the announcement that a live theatre company will be taking 12,000 SF of space in the Shops at Ithaca Mall. That can help existing tenants by drawing in unique customer traffic that may choose to browse, shop and dine at other mall venues.

Back to the site at hand, the decorative facade appears to be initially shaped with plywood over steel stud walls, with a layer of fireproof gypsum laid over the top of that (except toe cornices, which appear to have no plywood layer, only gypsum). The bases are concrete masonry walls. The textured stone veneers and fiber cement panels will come later.





South Meadow Square Construction Update, 3/2018

23 03 2018

One doesn’t have to look far to see retail is taking in on the chin. Wikipedia has a well-sourced listicle of events in the “retail apocalypse“, as it’s been branded by the national media outlets. Several factors play into the spike in retail chain bankruptcies and closures across the country – the rise of Internet shopping (Amazon) and easy, cheap distribution, Wal-Mart and other megachains exerting economies of scale on other retailers can’t afford to sell as cheaply, younger generations buy less “stuff”, the United States simply has too much retail space.

For now, some retailers are more immune than others – those who focus on convenience and budget necessities (dollar stores), those who sell goods that are hard to ship (home improvement stores, wholesale clubs), and those who focus on experiences rather than items. However, even sectors that were once seen as safe as starting to feel the pinch – pharmacies and grocery stores, for instance.

With all that in mind, it seems a bit odd to be building new suburban “big-box” retail space, but Buffalo-based Benderson Development is doing just that at South Meadow Square at 742-744 South Meadow Street on the city’s southwest side. Benderson purchased the retail strip from the original developers (the Visnyei family) in 2009.

Development of Ithaca’s big-box corridor has always been contentious. Long ago, the area consisted of a few small auto-centric businesses and the county fairgrounds (hence Fairgrounds Memorial Parkway). During the mid and late 20th century, big box retail slowly made its way into the southwest part of the city – what’s now Finger Lake Reuse on Old Elmira Road was built as a grocery store in the 1970s, and parts of Ithaca Plaza next door date to 1950. Wegmans opened a store in the 1980s, and replaced with newer, larger store in 1997.

The 1990s was when big-box development pressure seemed to come to a head. Wal-Mart was stymied for years thanks to neighborhood opposition, and Target eventually gave up its plans and moved to Lansing. But, much to the city’s chagrin, the 1990s were difficult times economically – the tax base was in decline, state aid was in decline, and the local economy was mired in a deep recession. Somewhat begrudgingly, the Nichols (1989-1995) but especially the Cohen administration (1995-2003) began permitting large-scale retail development in the hopes of propping up the tax base and stemming the flow of dollars to suburban outlets in the suburbs, as well as Elmira and Cortland.

Many of the  city’s big boxes are result of that late 1990s/early 2000s wave. Wal-Mart (2005, expanded to a Supercenter in 2011), Home Depot (2003), the Tops Placa (2002). Some were all-new, others were extensive renovations and rebuilds. This particular retail strip at 742-744 is one of the latter – it had actually opened as a rather large 87,000 SF K-Mart in the 1970s (the 22,000 SF supermarket it shared a lobby with later became Staples), and was extensively renovated and in the mid-1980s and in more recent years. The K-Mart looked pretty dated when it closed in October 2011. Hobby Lobby filled some of the old K-Mart space in 2013, and in fall of that year, plans were drawn up for a pair of endcap expansions.

One was on the north end – 7,315 SF of retail space, next to the early 2000s 19,000 SF PetSmart. The other was a 14,744 SF south endcap that would be built were K-Mart’s garden center used to be. These plans were approved in November 2013, but then updates and revisions were proposed in 2014, when TJ Maxx and Five Below were announced to fill the remaining vacant space (21,770 SF and 8,209 SF respectively). At that time, the southern addition became 16,200 SF.

For one reason or another, Benderson decided to go back to the original plan (probably a potential tenant backed out) early last year, and asked for re-approval of the November 2013 additions – city approval is only good for two years. Unlike most parts of the city, the lack of nearby residents and general apathy towards big-box retail makes variances somewhat easier to receive; plus, a re-approval is typically a small matter – re-approval was granted in May. City zoning (SW-2, and PUDOD) is generous down here because the city keeps hoping someone will do walkable mixed-use, but the waterlogged soils make that difficult – you either build shallow, or quite deep, and quite deep requires a lot of height and square footage above ground to make up those construction costs.

Construction is going to be fairly standard – concrete slab foundation, steel frame, masonry walls, and probably some decorative entry bays and facade work. At the moment, excavation is underway for the footers of the foundation on the southern end, while the footers have already been poured and strengthened with rebar on the northern end. The Dryvit and brick veneer on the wall of Pet-Smart has been removed, and I think that’s mineral wool insulation underneath. Expect both of these to be finished towards the end of the year. I don’t have a project value offhand, but the existing plaza (128,582 SF) is $6.5 million, so 22,059 SF of new space is probably worth about $1 million or so.

As for tenants, your guess is as good as mine. We’ll see if Benderson can make it work in the age of the retail apocalypse. Benderson’s proffered choice of designers, Buffalo’s Carmina Wood Morris D.P.C., is the architect.

November 2017

January 2018

March 2018