New Container Park (And More!) Coming to Spanish Fort Town Center
Congratulations to Angie McArthur & Jeff Barnes, leasing agents with Stirling Properties, on the launch of “The Fort!”
Stirling Properties is so excited, we can’t CONTAIN it! A new container park called “The Fort” is coming to Spanish Fort as part of the Spanish Fort Town Center mixed-use development in South Alabama.
Spanish Fort Town Center, anchored by Bass Pro Shops, Kohl’s, and JCPenney, is a 230-acre premier master-planned development located at the intersection of Interstate 10 and U.S. Highway 98 in Baldwin County. The center includes 450,000 square feet of retail and restaurant space, an apartment community, hotels, banks, and entertainment options.
Property owners, Dallas-based Cypress Equities, recently broke ground on the addition of a new container park, which will be composed of approximately eight shipping containers that will be repurposed and transformed into functioning restaurants and shops, and will share a common open-air environment where patrons can sit and dine.
Eight of the nine tenants that will operate in the container park have been secured, including Dragonfly Taco Bar, Dickey’s Barbeque Pit, Soul Bowlz, Sno Biz, Deuce Coop, Beakers Coffee, Spanish Fort Pizza Co., and a local craft brewery. The energy and promise of the park resonated with tenants from the minute it launched and lease up was swift. The containers will arrive on site in October. The Fort is expected to open in November of 2018.
Angie McArthur, Broker Associate, and Jeff Barnes, Senior Investment Advisor/Broker Associate with Stirling Properties, serve as the leasing team for Cypress Equities and have been working with the overall Spanish Fort Town Center project since 2015. According to McArthur, great strides have been made to reactivate and move this project forward—from Cypress Equities’ investment in the Pavilion and park to the revitalization of the small shops, and now, the latest addition of The Fort.
She noted that over the last year, Stirling Properties helped to successfully secure more than 44,000 square feet of new leases for the retail center, adding Urban Air Trampoline and Adventure Park, Beauty World (currently under construction next to Kohl’s), Direct Furniture, Oishi Japanese Bar & Grill, and Tots2Teens Fun Salon to the diverse tenant lineup. McArthur and Barnes are also currently in negotiations with various retailers that will add another 30,000 square feet of shopping and dining options to the center.
“Part of the goal behind the launch of the container park last year was increasing foot traffic in the retail center to support the shops and surrounding businesses,” said McArthur. “The addition of this great community space will attract even more patrons and diners to the development and offer family-friendly entertainment options for visitors that will also benefit the surrounding retailers—this will be a true destination location.”
In conjunction with the new container park, Spanish Fort Town Center is also launching “The Village,” a unique boutique retail concept that will consist of small and specialty shops such as food options, fitness providers, clothing, gifts, candles, accessories, and salon services. Spanish Fort Village will deliver a pedestrian- and family-friendly, urban environment unlike anything else in the market area. Leasing for the space is currently underway. These units are located across from Urban Air Trampoline and Adventure Park and The Fort.
Spanish Fort has in the last decade experienced explosive residential growth—Baldwin County continues to be the fastest growing county in Alabama with 49% population growth since 2000—and has become a desirable community for families and new businesses alike. “Retail follows rooftops. We will continue to see even more growth in this area, and retailers will catch up to meet the increasing consumer demands,” added McArthur. “Stirling Properties is proud and excited to be a part of the evolution and growth of Spanish Fort Town Center, and we look forward to announcing more great tenants to come!”
For Spanish Fort Town Center leasing & sales information, contact Jeff Barnes, CCIM, at (251) 375-2496 / jbarnes@stirlingprop.com or Angie McArthur at (251) 375-2481 / amcarthur@stirlingprop.com.
UNTUCKit Celebrates Grand Opening of 1st Louisiana Store in New Orleans
Stirling Properties worked as local brokerage tenant rep to secure location.
On Friday, UNTUCKit celebrated the grand opening of its first Louisiana store located at 3943 Magazine Street in the heart of New Orleans. Stirling Properties commercial real estate company worked as the local brokerage tenant representative to help secure the location.
UNTUCKit, one of the fastest-growing retail brands in the U.S., will occupy 2,089 square feet of retail space. If you’re not familiar with the brand, UNTUCKit was created in 2011 to solve the problem of the long, sloppy look of untucked and ill-fitting dress shirts by designing shirts that are meant to be worn untucked. They’ve since introduced categories ranging from t-shirts and polos to sports jackets and performance wear—plus, the launch of women’s and boys’ lines in 2017.
Earlier this year, New Orleans Saints quarterback Drew Brees joined the UNTUCKit team as an investor and “brand ambassador” for the company. He decided to invest after meeting the company’s founder Chris Riccobono at the 2018 Super Bowl. Recently, Brees and the retail company gave away 10,000 shirts to local students in New Orleans ahead of them going back to school!
“We’re excited to bring the ease and comfort of our full apparel line to the NOLA community, up close and in person. The Magazine St. store will house the complete UNTUCKit assortment, where customers can try on each style and find their perfect fit in a relaxed and unique shopping environment,” said Chris Riccobono, Founder of UNTUCKit.
While this is the first Louisiana store, UNTUCKit Magazine Street will be the brand’s 41st store across the U.S. and Canada. Carly Plotkin, Sales & Leasing Executive with Stirling Properties, served as the local tenant rep on the lease transaction, along with Cushman & Wakefield.
“Stirling Properties is proud to welcome UNTUCKit to New Orleans. We truly enjoyed working with them to locate and secure the perfect retail location for the very first Louisiana store!” said Plotkin. “We are certain this apparel brand will be a huge success with New Orleanians, and we are looking forward to welcoming more stores to the Gulf South very soon.”
For sales & leasing information, contact Carly Plotkin at cplotkin@stirlingprop.com / (504) 620-8120.
HOTWORX is heating up across the country
Early last year, Stirling Properties was selected to exclusively represent HOTWORX, a new-to-market fitness concept, in its aggressive expansion efforts across the U.S.
To date, Stirling Properties is excited to announce that 40 HOTWORX locations have been leased, and 50 more are expected by the end of the year. Our brokers are anticipating more than 100 new locations in the pipeline per year over the next five years!
Joe Gardner, CCIM, and Thomas Bryan, Stirling Properties’ Sales and Leasing Executives, are the exclusive national tenant rep brokers for HOTWORX. Utilizing the Retail Brokers Network (RBN) and the local knowledge of individual brokers across the country, this dynamic duo is working diligently to secure the perfect national retail locations for the new fitness concept—the ideal space required is between 1,500-2,500 square feet.
HOTWORX—founded in New Orleans, LA—is revolutionizing the fitness industry by providing the ultimate hot exercise experience and is the first to launch a 24/7 business franchise model through the use of its proprietary patent-pending technology. It is a virtually instructed exercise program created for users to experience the many benefits of infrared heat absorption, while completing a 30-minute isometric workout or 15-min high-intensity interval training (HIIT) session. As the infrared heat penetrates the body, the isometric postures further accelerate detoxification by physically removing toxins from organs through muscle contraction.
Currently, the company has locations in Alabama, California, Florida, Georgia, Indiana, Louisiana, Mississippi, North Carolina, Oklahoma, Tennessee, and Texas. Future studio sites also include locations in the greater New Orleans area and surrounding Gulf Coast region. For a complete list of HOTWORX stores, click here.
“Our HOTWORX fitness concept is rapidly expanding. We are happy to continue our partnership with Stirling Properties, a proven leader in the real estate industry, to grow our business across the nation. We are still seeking franchisees for various business opportunities and will be announcing new HOTWORX locations soon,” said Stephen Smith, HOTWORX CEO.
“Stirling Properties is proud of our successful partnership with HOTWORX—a company that was founded right here in New Orleans. This unique concept is growing in popularity across the nation and is quickly becoming a leading fitness provider,” said Bryan. “Landlords and property owners are attracted to this type of tenant, not only for its ability to backfill empty retail space but also for its ability to drive traffic to neighboring stores. We look forward to announcing many more locations in communities across the U.S.”
For more information on HOTWORX and franchise opportunities, visit www.hotworx.net.
President’s Message: Chasing the Future
“Alexa, what does the future hold for the commercial real estate industry?”
It would be splendid if it was that easy to get answers to the countless questions that we all undoubtedly have regarding the real estate business. While we don’t (yet) have a crystal ball (or a Watson) to accurately predict the future, one thing is unquestionably certain: disruption is inevitable.
Our industry is on an accelerating disruption curve primarily driven by technology. Data access, artificial intelligence, and automation are quickly reinventing the entire premise on which we do business. And this fast-track is not slowing down any time soon.
In fact, it’s said that the real estate industry is the largest and ripest for disruption via technology and that we are actually lagging behind in innovation. During a recent conference, I heard a presentation from a group of young men heading up venture capital funds specifically focused on technology startup companies that would disrupt some aspect of the real estate world. They noted that more than $7 billion was invested in the last four years alone in such companies—and this is only the beginning.
As real estate is a long-term, capital-intensive, lease encumbered asset, it is critical to attempt to predict the future implications of this disruption. In my opinion, five significant influencers will disrupt the real estate industry.
#1 Data
Big Data drives the world. Everything we do, buy, see, browse for online, and every single place that we go is being captured and collected. This shared data enables machines to learn and predict human behavior, which leads to artificial intelligence, and eventually, to the Internet of Things. From our houses and offices to our bodies to the light poles in the parking lot, everything will be connected to the internet.
Data will literally impact every aspect of how we live, work, play, interact, and thus, affect every facet of real estate. As I said before, these things are reality NOW. We’ve already witnessed incredible technological advancements like geofencing and proximity marketing in retail, facial recognition features, and digital healthcare—all powered by data. It’s mind-blowing, and it will continue. From mobile platforms to smart buildings and virtual technology, access to data is going to change the face of commercial real estate.
#2 Jobs of the Future
Because of technology and automation, it’s estimated that ⅔ of all jobs will be at risk over the next 10-15 years. Entire industries will be eliminated or fundamentally changed, including many in real estate. For example, 38% of the retail workforce is vulnerable to elimination. Cashiers, fast food cooks, truck drivers, medical professionals—you name it—all face the probability of elimination.
Ultimately, real estate is driven by where people live and work. In my day, an employer’s location drove most of the decisions on where the workforce would live. The skilled workforce of the future—mostly made up of millennials—is very different. Skilled workers are now driven by quality of life, cost of living, culture, entertainment, the “coolness factor.” They place more importance on where they want to live and then find employment. We see examples of this in millennial magnet markets across the country. For companies to recruit and retain talent, they must follow the skilled workforce.
This workforce evolution is also impacting work and office environments. Those with open floorplans, collaborative spaces, green features, fitness options, and artisanal food choice are the types of working environments that this demographic is attracted to.
#3 Autonomous Vehicles
Experts predict cars will be basically obsolete by 2030—currently, there is a 95% inefficiency of use. It’s crazy to think that some of my grandchildren will probably never drive their own vehicle (thankfully).
Autonomous vehicles (AV) will be the biggest disruptor of real estate because this has long been an industry designed and built primarily around transportation, access, and parking. When you take those factors out of the equation, you are fundamentally changing the entire industry. The AV’s potential to reshape real estate, development, and city planning will rival that of the introduction of the automobile itself, and will destroy and create massive wealth in real estate assets.
Right now, there are 500 million parking spaces in the U.S. and 260 million vehicles. That’s almost a 2:1 ratio. (Houston is the winner at 30:1 ratio.) It’s projected that AV could reduce the need for parking space by more than 61 billion square feet.
“Alexa, what can I do with my empty parking lot?”
#4 Retail Renaissance
I would be remiss if I didn’t mention retail and the myth that brick and mortar is dying. It’s not dying; instead, it’s more like a renaissance. Yes, many stores have died and some will still die because they could not adapt to the disruption of e-commerce and shifting consumer demands.
However, many stores are thriving and seeing increased sales numbers. They are using e-commerce to their advantage and learning to adapt to online tools and technological platforms. Today’s consumers are digitally empowered, relentlessly distracted, and time constrained. Also, successful retailers are determining that the future of shopping is not just about shopping. It’s about dining, entertainment, experiences, leisure—with shopping as an adjunct. New retail uses are evolving every day. Those retailers that adapt to this changing landscape will come out on top.
I’ve heard a quote along the lines of, “Retail will change more in the next five years than it has in the past 50.” The retail renaissance is just beginning.
#5 Industrial is the new darling
Industrial real estate is one of the hottest real estate assets for two principal reasons. First, in retail, the last-mile phenomenon is driving an increased demand for industrial space to manufacture, sort, store and distribute goods in the race to get products to consumers in the fastest and most efficient manner possible. Statistics show that 90% of the U.S. is now within range for next-day delivery. Logistics and supply chain decisions are now a dominating factor influencing store locations, distribution facilities, and even mergers and acquisitions.
E-commerce is growing at over 16% per year. It’s projected that every $1 billion in e-commerce sales creates demand for another 1.25 million square feet of warehouse space in the U.S. You do the math—industrial real estate will continue to be a major influencer in our industry.
Another important factor driving industrial demand is the concept of “local is the new global.” Consumers are choosing local products and services over big-box models. We see the conversion of old, industrial spaces into innovative food halls, microbreweries, and cool office co-working spaces. In many cases, these conversions are transforming entire neighborhoods and communities. It’s exciting to see this asset evolution.
So there you have it—the top five influencers that I believe will have the most impact on the commercial real estate industry. While I do wish I could ask Alexa precisely what’s in store for us, we can be sure it involves more disruption.
One of my favorite quotes is, “You either see the future coming, or you chase it after it comes.” The moral of the story is that it’s critical we are thinking about the impacts of all of this and how it’s going to affect our business moving forward. Disruption should not be considered a threat, but rather an opportunity. I would be happy to hear your thoughts and open dialogue on these topics. Feel free to reply with your comments.
Now, “Alexa, where can I get a robot?”
Stirling Properties helping to build Next Generation of commercial real estate professionals
In partnership with ICSC (International Council of Shopping Centers) Foundation, Stirling Properties’ team members have been actively involved in leading efforts to help create and maintain a pipeline of strong and diverse talent for the future of the commercial real estate industry. Two main areas of focus are centered on professional and academic development.
Next Generation is ICSC’s educational, networking, and mentoring program specifically designed for emerging retail real estate professionals who are seeking to develop and advance their careers and build relationships in the commercial real estate industry.
Carly Plotkin and Townsend Underhill
Townsend Underhill, Stirling Properties’ President of Development, is serving as the Southern Division Chairman for Next Generation—he is also Past Louisiana State Director for ICSC. Recently, his volunteer committee hosted the very first fundraising event for the Next Generation Fund of the ICSC Foundation during the ICSC Next Generation Conference in Toronto. More than $7,000 was raised to help support a professional education scholarship fund designed for up-and-coming professionals who are interested in progressing their skills in retail real estate.
Carly Plotkin, Sales & Leasing Executive with Stirling Properties, was awarded one of the first two scholarships from the Next Generation fund! Plotkin is also currently serving as the ICSC Next Generation State Chair for Louisiana and on the national Board for ICSC Next Generation.
“Stirling Properties is extremely proud of our work on this front. We are equally proud that one of our very own agents was awarded a professional development scholarship. No one is more deserving of this honor than Carly,” said Underhill. “Assisting new professionals in our industry to succeed—and even excel—in their careers is crucial for the future of our business. So we must be proactive in ensuring that we are not only attracting and retaining the brightest talent base available, but also equipping them with the tools they need to be prosperous.”
ICSC also supports numerous student academic programs, such as annual student membership opportunities, conference attendance, scholarships and experiential opportunities, as well as mentoring and job assistance.
Stirling Properties’ Vice President of Finance, Justin Landry, serves on the ICSC Foundation Talent & Education Committee, which focuses on identifying, attracting, and developing young people with interest in the retail real estate industry. The committee’s primary goal is to increase student engagement in ICSC, and focus on job placement within the industry.
Landry was selected to serve on the ICSC committee due to his background working with college-level students at LSU (Louisiana State University). He works as an instructor for the university teaching Finance 7720 (Commercial Real Estate Investing).
Jimmy Maurin, Justin Landry and ICSC Maurin-Ogden Foundation LSU Scholarship Award Recipients
Over the past few years, Landry has been instrumental in introducing LSU students to academic scholarships and career placement opportunities, such as the ICSC Maurin-Ogden Foundation LSU Scholarship Award, funded by Jimmy Maurin and Roger Ogden, founders of Stirling Properties. Through the scholarship, students receive all-expense-paid attendance to ICSC RECon in Las Vegas, the world’s largest retail real estate convention. Each year, Stirling Properties hosts LSU Award Recipients at the conference, offering the students valuable exposure to industry leaders and potential employers.
Now, working with the ICSC Foundation Talent & Education Committee, future academic engagement strategies include developing and increasing student-focused events at major ICSC conferences; building relationships with universities and establishing/enhancing Real Estate Clubs; identifying and expanding educational opportunities such as internships and case competitions; and career placement programs such as career fairs and targeted recruitment sessions.
“This is an extraordinary opportunity for us to invest in the future of our industry, while also supporting local communities,” said Landry. “ICSC has been on the front lines leading this charge, and Stirling Properties is proud to be able to partner with them to advance their efforts. Collectively, we are developing strategies that will lead to job creation for students, economic growth for local communities, and talent retention within our industry. These are the next generation of executives and brokers that are going to lead our companies—it’s critical that we make them a priority.”
#StirlingProud
Fresh Food Eatery, Coffee Shop and Clothing Boutique to Open in LSU’s Nicholson Gateway
LSU and Stirling Properties announced today that Frutta Bowls, Starbucks and Private Stock apparel boutique will be retail tenants in the university’s new Nicholson Gateway Development Project, currently under construction on a 28-acre site of the Nicholson Drive Corridor, between West Chimes Street and Skip Bertman Drive.
The three tenants join anchor retailer Matherne’s Market and fast food restaurant Wendy’s in the roughly 50,000-square-foot retail component of Nicholson Gateway, which will serve residents of the project, the LSU community and visitors, as well as the surrounding Baton Rouge area.
“We are thrilled to have Frutta Bowls, Starbucks and Private Stock join Matherne’s Market and Wendy’s in our campus community. I’m confident these new neighbors will enhance the Nicholson Gateway living experience for the more than 1,500 students who will call this new space home in just a few weeks,” said LSU Assistant Vice President of Residential Life Steve Waller.
Matherne’s Market currently under construction
Opening its first Louisiana location, Frutta Bowls is a quick-service eatery offering acai, pitaya, oatmeal and kale bowls topped with fresh ingredients like fruit and granola. Their menu also includes smoothies, protein bites, kombucha and grab-and-go items.
Private Stock offers a selection of upscale sneakers and trendy apparel in a fashion-forward, hip atmosphere. Owner Donnie Alfred is a graduate of LSU and former LSU Track and Field sprinter, and is excited to move his Baton Rouge, La., store location closer to students.
Starbucks will operate a licensed location at LSU with indoor and outdoor seating to be a neighborhood gathering place for Nicholson Gateway residents, all LSU students, faculty, staff and visitors.
Nicholson Gateway Rendering
The LSU Property Foundation, an affiliate of the LSU Foundation, is facilitating Nicholson Gateway. Stirling Properties is serving as the retail developer and leasing broker on the project, working with the prime developer, Georgia-based RISE Real Estate, which specializes in student housing. Stirling Properties will also handle ongoing retail property management.
Opening this month, Nicholson Gateway will include 763 units of apartment-style housing for over 1,500 students, with associated residential support spaces, such as lounge spaces, study areas, community gathering places and retail food service. The project, focused on the largest underdeveloped tract of university-owned property that is adjacent to the campus core, will turn what has traditionally been the back of the campus into an exciting new gateway district while responding to demands for on-campus housing and supporting student success, improving the campus living experience for both undergraduate and graduate students.
For retail leasing information, please contact Dottie Tarleton, CCIM at dtarleton@stirlingprop.com / 225-922-4253 or Rhonda Sharkawy at rsharkawy@stirlingprop.com / 504-620-8145.
For student leasing information, visit lsu.edu/nicholson. Information about the overall project is available at nicholsongateway.com.
