NEWS - Commercial Real Estate

This is the first installment in a series of six articles about real estate development and/or projects that are performing well in the currently challenging economic environment. The author is Harvey J. Gilbert, who is managing director and broker-in-charge of Gilbert & Lattimore Commercial Real Estate, LLC, a full service commercial real estate brokerage, consulting and development firm that is a member of the Cushman & Wakefield Alliance.

When the Norwood Market first opened, the Sandfly intersection of Skidaway Road and Ferguson/Norwood Avenue was a relatively sleepy crossroads primarily serving the transportation and shopping needs of the immediate neighborhood. Over the last 20 years, the southeast sector of Chatham County has experienced an intense level of development including the build-out of Dutch Island, Isle of Hope, Skidaway Island and the neighborhoods in between. Transportation patterns have been radically altered by the completion of Truman Parkway with interchanges at nearby Montgomery Cross Road and Eisenhower Drive.

Today, Sandfly is a vibrant commercial center catering to the shopping needs of tens of thousands of residents residing within a 20-minute drive of the traditional crossroads historically known as Newton’s Corner. There are now commercial centers located on three quadrants of Newton’s Corner that feature a myriad of commercial uses including multiple restaurants, retail shops, dry cleaners, mini-storage, a grocery store and pharmacy.

The current owners of Norwood Market envisioned and have successfully executed the repositioning of the center from a dated neighborhood shopping establishment to a true lifestyle center catering to the needs and consumer preferences of area residents. By investing more than $2 million in renovations and upgrades to Norwood Market, its owners have not only created an aesthetically pleasing regional focal point, but they have also attracted a strong roster of new, highly complementary tenants.

Phase I of the project, which consisted of the renovation of the existing buildings, is complete. Phase II will entail the construction of a third building with 10,000 square feet of additional retail space which is slated for availability in the first quarter of 2012. Since the renovation began, the owners have leased 100 percent of the existing space at a prevailing rate slightly above $20 per square foot. Although there are no formal plans committed or announced, there has been discussion of extensive renovation to the Piggly Wiggly space.

The existing anchors of Norwood Market, Piggly Wiggly and CVS, have remained in place. The owners have brought in Family Dollar as an additional national tenant to anchor the center and broaden the spectrum of retail goods offered.

Cutters Point is a central daily gathering place for retirees chasing their first cup of coffee, as well as moms who have just dropped off their children at school or daycare, and business people pursuing a networking strategy. On most mornings, and particularly Saturdays and Sundays, one is hard-pressed to immediately land a table at Loc’s restaurant. Wright Square Café is a preferred destination for a relaxing lunch break or dinner after a hard day’s work.

For the sports and/or athletic buffs, there is the Sandfly Bar and Grill, a long time neighborhood fixture with an attractive new décor, and Savannah Power Yoga. Several new or updated gift stores offer a full array of unique and widely appealing merchandise. Simply put, there is something for everyone at Norwood Market, which makes it difficult for residents to pass through Sandfly without stopping in.

You do not have to be a seasoned shopping center developer to understand the primary determinants of success for a retail center. You need a rectangularly shaped site located on at least one corner of a signalized intersection of two busy traffic thoroughfares, and the site needs to have good visibility, multiple access points and plenty of room for off-street parking. But these factors alone do not ensure long term success and we all know a tired and outdated center when we see one.

For a retail center to thrive, the owner has to make periodic and substantial investments in facades, mechanical systems, amenities, landscaping and signage, as well as stay focused on and adapt to the ever changing needs and preferences of consumers and tenants. The owners of Norwood Market have followed this course and the result has been the successful rebirth of a vibrant neighborhood center.

The owners of Norwood Market, Shoppes at Isle of Hope, LLC, are partners with Talbot & Company, which is based in Myrtle Beach, SC. The architectural services were provided by Gunn, Meyerhoff and Shay, with construction completed by Talbot Real Estate Services, and leasing by Mary Christy Macdonald of Whitley & Associates.

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