Torchy’s Tacos and AT&T Store Headed to LSU’s Nicholson Gateway in Baton Rouge, Louisiana
LSU and Stirling Properties announced today that Torchy’s Tacos and AT&T will fill two more retail spaces in the university’s Nicholson Gateway Development, a mixed-use project located on a 28-acre site of the Nicholson Drive Corridor, between West Chimes Street and Skip Bertman Drive.
The two new tenants join anchor retailer Matherne’s Market, Wendy’s, Starbucks, Private Stock, Frutta Bowls, The Simple Greek and Baton Rouge General Express Care in the roughly 50,000-square-foot retail component of Nicholson Gateway. With the addition of these two tenants, all the first-floor retail space in the project is now fully leased.
Torchy’s Tacos, a popular Austin, TX-based taco chain, will open its first location in Louisiana in early 2020, occupying more than 4,000 square feet of space on the end cap facing Nicholson Drive. The fast-casual restaurant is known for its Tex-Mex-inspired menu, including a variety of unique tacos and signature cocktails. Torchy’s started in 2006 as a food truck and has since grown to more than 60 locations across Texas, Oklahoma, Colorado and Arkansas.
AT&T will fill 1,675 square feet of retail space next to The Simple Greek, facing Nicholson Drive. The mobile phone sales, service and accessories provider plans to open in January of 2020.
Stirling Properties’ commercial real estate advisors Rhonda Sharkawy and Dottie Tarleton worked with both tenants to secure locations in the retail development. An additional 11,000+ square feet of rooftop space is available for lease.
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 last fall, Nicholson Gateway includes 763 units of apartment-style housing for more than 1,500 students, with associated residential support spaces, such as lounge spaces, study areas, community gathering places. The project turned 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 at dtarleton@stirlingprop.com or 225-922-4253 or Rhonda Sharkawy at rsharkawy@stirlingprop.com or 504-620-8145.
For student leasing information, visit lsu.edu/nicholson.
Part #3 – Retail Site Selection for Drug Stores
Drug Stores Have Unique, Evolving Characteristics
Around the turn of the century, the Drug Store War for “Class-A” corners erupted across the Gulf South. Between the Rite Aid and K&B merger, as well as CVS and Walgreens aggressively competing for market share, the race was fast and furious. I distinctly remember sale prices exceeding $20/foot for the first time, and “Coming Soon” signs appearing on corners on the regular. Most of the drug stores that we frequent today were likely built between 1998-2006.
Unlike convenience stores that rely on traffic counts or quick-serve restaurants that benefit from both traffic counts and proximity to customers, drug stores focus more heavily on population or “warm bodies.” And, even though location and access are important, drug stores can be considered a “destination retailer.”
The reason being, although a large portion of a drug store’s customer base picks up their prescriptions during their P.M. commute, drug stores don’t rely on the impulse consumer dollar.
Extensive studies have shown (in a market size like Baton Rouge, LA) most script fillers will use the drug store located within a five-mile radius of their home.
Further, one-third of a drug store’s gross revenue is generated during off-peak hours, attributed to homemakers and retirees shopping during the day, patients picking up scripts after doctor’s visits, as well as their weekend customer base.
However, with the amount of capital that major drug stores like Walgreens, CVS and their competitors have invested in their marque locations, they in turn, usually have higher overhead and product pricing.
At a time when families have less disposable income and higher healthcare and prescription costs, more and more consumers are starting to sacrifice convenience for cheaper pharmacy alternatives.
Grocery-store pharmacies such as Walmart, Kroger and Sav-On, as well as discount prescription providers, online pharmacies, wholesalers and health clinics have seen a spike in sales, posing a threat to the retail drug store industry.
While existing population is still a key factor in the drug store site selection process, drug stores have started purchasing sites in outlying/rural areas where new home sales, multifamily communities and spikes in population are projected.
We are also seeing drugstore chains looking at more unique locations than they have in the past, capitalizing on mall shoppers, students, office building and hotel users. Some are incorporating smaller footprints with more curated product offerings or expanding in-store healthcare services to enhance their brick-and-mortar customer experience.
As consumer behavior continues to evolve, so will the characteristics and site selection needs of retailers, including drug stores.
Working with a site selection specialist that knows the market trends and projected growth patterns can be an invaluable asset for any retailer looking for sustained growth in a market.
Stay Tuned for Collier’s Next Post!
If you are interested in a site selection specialist, or for questions regarding your commercial real estate property, contact J. Collier Thornton at (225) 926-4481 or cthornton@stirlingprop.com.
New Rouses Market-Anchored Retail Development Coming to Lake Charles, Louisiana
Anticipated construction completion in the spring of 2020.
Stirling Properties commercial real estate company is pleased to announce that a new Rouses Market-anchored retail development is coming to Lake Charles, Louisiana. Developed by the Eisenberg Company, the roughly 90,000-square-foot development will be located on 10.25 acres on Nelson Road at Ham Reid Road in South Lake Charles. Eisenberg Company recently completed construction of its first Rouses Market-anchored shopping center, Arlington Marketplace, in Baton Rouge on the corner of Lee and Burbank.
Anchor-tenant Rouses Market will occupy approximately 44,000 square feet of retail space. Construction of the state-of-the-art, ground-up grocery store commenced last week, and it is expected to open in the fall of 2020. This marks the 3rd Rouses Market location for the Lake Charles area.
Rendering courtesy of Rouses Facebook
Stirling Properties’ commercial advisors are serving as the listing agents for the retail project. Justin Langlois, CCIM, Ben Graham, CCIM and Seth Citron are working diligently to fill the remainder of the property and bring new tenants to the market. Additional pad sites and shop space is available for sale, lease or build to suit.
“This exciting new Rouses Market-anchored retail development is centrally located within the fastest growing area in the region. Some of our ideal tenants for the space include quick-serve establishments, soft goods and service providers, and restaurant options,” said Citron. “Lake Charles is in the midst of an economic boom resulting in new job growth and subsequently population growth. We expect to see new companies and major retailers entering and expanding in this market—and we look forward to welcoming them very soon.”
Stirling Properties is located at 1400 Ryan Street, Suite B in Lake Charles, La. For sales and leasing information, contact Justin Langlois, CCIM at (225) 329-0287 / jlanglois@stirlingprop.com, Ben Graham, CCIM at (225) 329-0268 / bgraham@stirlingprop.com or Seth Citron at (337) 572-0273 / scitron@stirlingprop.com.
Stirling Properties Acquires Open-Air Retail Center in Pace, Florida
Stirling Properties commercial real estate company announces the acquisition of Santa Rosa Commons retail center in Pace, Florida. The sale closed on Wednesday, September 11th at a purchase price of $26 million. This marks the first acquisition for the company in the state of Florida. Stirling Properties will also assume leasing and management duties of the property effective immediately.
Built in 2008, Santa Rosa Commons is located on US Highway 90 in Pace, a part of the Pensacola MSA. The 138,850-square-foot open-air shopping center is 96.5% occupied and anchored by Publix, T.J.Maxx and PetSmart. Shadow-anchors include Target and The Home Depot. Other tenants in the center are Maurices, Shoe Carnival, Anytime Fitness, Sally Beauty, GNC, GameStop, Wasabi House Restaurant, Dr. Vape It, The Joint and Cuts By Us. The purchase also encompassed three single tenant outparcels housing Chili’s, Regions Bank and AT&T.
“We are thrilled to add Santa Rosa Commons to our growing portfolio of commercial properties across the Gulf South region. This is momentous for Stirling Properties because it marks our first acquisition in the Florida Panhandle and really puts skin in the game for us in this thriving market. We are optimistic in the continued success of the Pensacola metro area and look forward to future growth opportunities,” said Donna Smith, Senior Vice President of Asset Management & New Business with Stirling Properties.
“Stirling Properties’ proven track record in acquisitions, along with our in-depth understanding of market dynamics and the positioning of assets allow us to identify unique investment opportunities such as Santa Rosa Commons,” said Beezie Landry, Vice President of Investment Advisors with Stirling Properties. “This is a stable, grocery-anchored retail center that sits on a high-traffic thoroughfare, situated in a dense retail node with excellent visibility. The property is well leased with a great mix of national, regional and local tenants—and we are confident that it will perform well for years to come.”
Stirling Properties has acquired and/or developed more than $2.3 billion in commercial real estate across the Gulf South region totaling nearly 28 million square feet, including retail, office, industrial, healthcare, residential and mixed-use properties.
For more information on Stirling Properties’ investment services, contact Beezie Landry at (985) 246-3781 or blandry@stirlingprop.com. For information on asset management, contact Donna Smith at (985) 246-3758 or dsmith@stirlingprop.com.
Retail Site Selection for Fast Food Restaurants or QSRs
Retail Trends Have Changed
While smartphones and technological advances have created the convenience for consumers to do just about anything with the simple push of a button, somehow it seems our society has never been busier. We are always on the go. Studies have shown that on average, today’s consumer spends approximately 30% more time in their vehicles than ten years ago.
Part #2: Fast Food or Quick Serve Restaurant (QSR)
The one retail sector that has seen the greatest benefit from today’s hustle-and-bustle society is the Fast Food industry (or Quick Serve Restaurant (QSR)).
As mentioned in Part #1 of this blog series, all retailers rely on traffic counts and accessibility of their location. And, like convenience stores (C-Stores), QSRs benefit greatly from traffic counts, but they must also consider proximity to their customers.
Until recently, very few QSRs focused on the A.M. or “breakfast consumer.” For years, except for a handful of fast-food chains like McDonald’s, most QSRs only focused on the lunch and dinner or P.M. consumer. Therefore, being on the P.M. side of the road was a must.
However, with retail markets becoming heavily saturated with QSRs, coupled with the increased capital tied up in a restaurant, QSRs have been forced to start offering a breakfast menu. In some cases, the small margin of revenue that breakfast sales now provide has become a crucial component in a QSR’s profitability.
The one QSR statistic that has remained a constant, however, is that the P.M. consumer is most likely to visit a QSR within 1-2 miles (5-7 minutes) from their home.
Most experts contribute this trend to two major factors: familiarity of surroundings and being able to eat a hot meal at home. So, unlike C-Stores, proximity to rooftops must be considered when choosing a QSR site. While C-Stores can rely solely on traffic counts, QSRs cannot.
With the addition of breakfast menus, more and more QSRs that once wanted to be on the P.M. side of the road will now select the best site in a desired trade area. Therefore, working with a seasoned site selection advisor can be extremely helpful in determining and identifying the ideal location to best capitalize on the surrounding market.
Stay Tuned… Part #3 – Drug Stores
If you are interested in a site selection specialist, or for questions regarding your commercial real estate property, contact J. Collier Thornton at (225) 926-4481 or cthornton@stirlingprop.com.
HOTWORX Hits 100
Stirling Properties brokers 100th retail location milestone for fitness franchise as part of rapid expansion plan.
Stirling Properties announces that new fitness concept HOTWORX has secured its 100th retail location in Southlake, Texas. The fitness franchise, which opened its first store in 2017, now operates in 20 states across the country and anticipates another 75-100 national locations in the pipeline over the next year, as well as international growth.
Two years ago, Stirling Properties was selected to exclusively represent HOTWORX, a new-to-market fitness concept, in its aggressive expansion efforts across the U.S. Stirling Properties’ commercial advisors worked with the company to identify and secure retail locations in Alabama, Arkansas, California, Florida, Georgia, Indiana, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, Tennessee and Texas. Now, HOTWORX has its sight set on international expansion efforts. Last month, the company officially closed the deal with a Master Franchisee for Australia.
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 using its proprietary patented 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-minute 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.
Joe Gardner, CCIM, and Thomas Bryan, Stirling Properties’ Advisors, serve as the exclusive national tenant rep brokers for HOTWORX. Utilizing the Retail Brokers Network (RBN) and the local knowledge of individual brokers across the country, the dynamic duo is working diligently to secure the ideal store locations for the fitness concept.
HOTWORX in Orlando, Florida
“HOTWORX provides a first-in-class fitness program in the niche infrared exercise market. The franchisor utilized a tremendous amount of knowledge and input to create a business model that minimizes risk and maximizes customer experience—you simply can’t order this type of service online. We are proud of the extraordinary success of our client and look forward to helping them bring more retail locations to market soon,” said Bryan.
“We are overwhelmed by the countless, positive testimonials we receive from our HOTWORX customers, and we are confident that increasing consumer access to the HOTWORX brand—by securing more locations across the country—will only create more stories to be celebrated. We’re excited to continue our successful partnership with Stirling Properties to grow our business,” said Stephen Smith, HOTWORX CEO.
“HOTWORX is growing faster than any other fitness concept in the country. One of the biggest attributes of this success is its desirability among landlords and property owners,” said Gardner. “Fitness is currently one of the most attractive space users in commercial real estate because of its ability to drive traffic to neighboring retailers and encourage repeat visits from customers.”
Fitness is driving growth in retail real estate. According to a report from ICSC (International Council of Shopping Centers), Mixed-Use Properties: A Convenient Option for Shoppers, from 2008 and 2018, the number of fitness centers in shopping centers (including traditional/boutique gyms, yoga, cross-fit and cycle studios) increased from 6,218 to 14,044.
Furthermore, incorporating a mix of tenant types, such as health and fitness centers alongside traditional retailers, draws additional, more frequent traffic—29% of consumers say the presence of non-retail tenants encourages more frequent shopping center trips—and creates excitement through one-of-a-kind experiences.
The health and fitness trend has taken the real estate business by storm, morphing into a more than $30 billion industry—with no signs of slowing down. New-to-market, niche concepts such as HOTWORX that are reinventing the way consumers exercise and even shop, have a bright future in the evolving retail landscape.
