Project Information
Description of Entry
Fayette Mall in Lexington, Kentucky, is one of the most productive properties in the CBL & Associates Properties, Inc, (CBL) portfolio. The center has always maintained full occupancy - to the point that it had become problematic. The mall could not accommodate the retailers that the market demanded, such as The Cheesecake Factory and H&M. When Fayette Mall expanded in 1993, adding a South Wing, Sears became a pass-through between the North and South Wings, which caused customers to perceive Fayette as not one mall, but two. For over 10 years the mall team struggled to maintain a cohesive image and keep traffic flowing between the North and South malls. CBL's pro-active decision to purchase Sears and redevelop the space would solve numerous problems and would give CBL's leasing team the GLA it needed to bring in new, higher-end tenants in order to remain competitive in the marketplace.
Shopping Center Information
Type of Project
Regional Center
Other
NA
Physical Characteristics of Project
Mall
Other
NA
Total Acreage of Site
82.6
Total Acreage of Site
Before Renovation / Expansion | After Renovation / Expansion | Net Difference: plus or (minus) | Number of Levels |
82.6 | 82.6 | 0 | 2 |
Other Uses: Office
Other Uses: Hotel
Other Uses: Residential
Other Uses: Residential
0
Other Uses
NA
Other Uses
0
Trade Area/Cachement Area Information
Project Trade Area
Middle Market
Population of Primary Trade Area | Population of Secondary Trade Area | Annualized percentage of shoppers anticipated being from outside of trade area (e.g., tourists, conventioneers) |
516000 | 374000 | 7.5 |
Retail Information
Total Retail Space
1352870
Total Acreage of Site
Before Renovation / Expansion | After Renovation / Expansion | Net Difference-Plus or (minus) |
82.6 | 82.6 | 0 |
Gross Leasable Area (small shop excluding anchors)
107965
Gross Leasable Area (small shop excluding anchors)
Before Renovation / Expansion | After Renovation / Expansion | Net Difference-Plus or (minus) | Total Number of Retail Stores (excluding anchors) |
1313252 | 1352870 | 39618 | 150 |
Total Number of Retail Stores (including anchors)
154
Major Tenants
As part of CBL's Sears redevelopment at Fayette Mall, CBL's leasing team was able to attract and/or provide new, updated spaces to the following tenants:
- H&M
- The Cheesecake Factory
- Altar'd State
- Oakley
- Eddie Bauer
- Swarovski
- L'Occitane en Provence
- Very Bradley
- Teavana
- Janie and Jack
- Clarks
- Kinnucan's Specialty Outfitter
- New Balance
- Travinia Italian Kitchen and Wine Bar
- Newk's Eatery
- Jos. A Bank
- Chipotle
- PINK
- Buckle
- Bath & Body Works
Parking Information
Number of Parking Spaces Provided
5415
Deck Parking
No
If deck parking, list vehicle capacity and number of levels of parking structure and briefly describe how structure connects to center.
How many parking space are required by code?
5411
Development Schedule
Original Project Opening Date
11/7/2014
Official Project Opening Date
11/7/2014
Current renovation expansion opening date
11/7/2014
Professional Recognition
Development Company
CBL & Associates Properties, Inc.
Owner
CBL & Associates Properties, Inc.
Production or Executive Architect
Craig Wasserman
Graphic Designer
Lighting Designer
Landscape Architect
General Contractor
Graycor Construction
Management Company
CBL & Associates Properties, Inc.
Finance Company
CBL & Associates Properties, Inc.
Summary
Entry Summary
Describe the characteristics of the project you are submitting for an award.
Fayette Mall in Lexington, Kentucky, is one of the most productive properties in the CBL & Associates Properties, Inc. (CBL) portfolio. The center has always maintained full occupancy to the point that the mall could not accommodate new retailers seeking to enter the market. With interest from in-demand retailers like The Cheesecake Factory and H&M, CBL knew that an expansion was vital for Fayette Mall to maintain its status as the powerhouse retail destination in the market. Unfortunately, Fayette Mall was essentially land-locked, with limited opportunity to expand beyond its current footprint.
In 1993, in order to satisfy retailer demand at the time, Fayette Mall added a South Wing and Sears essentially became a pass-through between the North and South Wings. This prompted shoppers to perceive Fayette not as one mall, but two. For over 10 years, the mall team struggled to create a feeling of cohesiveness and keep traffic flowing between the North and South malls.
CBL evaluated the situation and made the bold decision to purchase Sears and redevelop the space.
This proposal carried with it a huge risk. Sears was one of Fayette Mall’s original anchors, having opened in 1971, and Lexingtonians were loyal to it. In fact, it was one of Sears’ best performing stores in terms of sales per square foot. Despite the success of this location, CBL knew that Sears was closing stores nationwide and that it had an opportunity to be pro-active, improve the overall flow of the mall, and increase productivity.
In what ways do you feel that other developers can benefit from your experience?
Underperforming anchor locations are a universal problem in the shopping center industry. Traditional anchor stores occupy large quantities of space and don’t generate nearly as much income for owners as other retail or non-retail uses potentially could. Our experience with this project can show other developers how prime anchor real estate can be reimagined in order to breathe new life into a tired section of the mall and transform the property as a whole.
Portions of the second floor of Sears were removed to create a more open feel and provide views to H&M’s upper level. This project capitalized on the opportunity to enhance the entire exterior of the Sears box by adding outward facing shops and restaurants and create an outdoor common area space for shoppers to gather. The addition of exterior facing shops created a streetscape atmosphere and gave CBL the opportunity to bring in names like The Cheesecake Factory, Kinnucan’s and Chipotle.
Was this project a public-private partnership or joint effort with a governmental entity? If so, what is the name of that agency, and what was the nature of their involvement in the project?
Not applicable
Describe the financing involved in the project.
CBL did not finance this project but used available free cash flow.
If you had this project to do over again, what would you do differently? Why?
CBL has been very pleased with the outcome of this project, however, a few small tweaks would be made if we had the opportunity to do the project over again. We were limited in the amount of the second level of the former Sears that we could remove. If we were to repeat the project, we would work to push the envelope and remove more of the second level to open up the concourse ceiling and bring more natural light into the concourse. Additionally, in retrospect, we should have incorporated more technology into the common areas to provide additional customer touchpoints and encourage online engagement in an offline environment.
Renovations / Expansions
Explain why the owner decided to renovate or expand. Include a description of the existing conditions prior to renovation or expansion (physical conditions, sales, tenant mix, vacancy factor and the like)
CBL recognized that redeveloping the Sears box was an opportunity to enhance the center by bringing in new-to-market retailers and adding GLA to ensure the long-term success and profitability of the center. At the time CBL was exploring the idea of purchasing Sears, a competing high-end project was in the pre-development phase and would be vying for some of the same retailers Fayette couldn’t currently accommodate. New GLA provided an opportunity for the leasing department to strengthen the mall’s position in the market by adding new retail and dining options while also weakening the position of a newer project. By executing on the redevelopment, CBL was able to increase the dominance of Fayette Mall in the market, invest in the Lexington community, and create a renewed sense of community around Fayette Mall.
Sears was a traditional two-story anchor comprised of approximately 153,112-square-feet, with two exterior entrances and two interior mall entrances creating a corridor connecting North Mall to South Mall. Additionally, the Sears site included an Auto Center on the front side of the mall. Since Fayette Mall was land-locked and could not expand beyond its footprint, the only viable option to satisfy consumer and retail demand was to redevelop the Sears space. For 10+ years the mall was perceived by shoppers as two sections with Sears in the middle. By redeveloping Sears, not only would CBL be able to accommodate new retailers but also create one cohesive center with the heart of the mall featuring an upscale retail experience.
Describe how the renovation or expansion altered those conditions.
CBL demolished the Sears box, leaving only the structure intact, and removed the front exterior wall of the box. Ground-up shell was added to the front of the building for exterior facing shops and restaurants, and the mall concourse was extended through the interior of the former Sears box to provide a seamless transition from one side of the mall to the other. New GLA on either side of the concourse made room for additional small shops. Additionally, portions of the Sears second level were removed to create a more open feel and provide views of the second level of H&M. This essentially created a mini center court area which eventually became the centerpiece of the redevelopment. Due to parking restrictions, the remainder of the second floor was unable to be converted into usable square footage. Instead, it was decommissioned and used as a utility room for electrical, HVAC, and plumbing. By doing so, we were able to install and maintain the MEP systems in a more cost-effective manner as well as utilize space that would have otherwise gone to waste. Additionally, the Sears Auto Center on the front side of the mall was demolished, which provided additional parking, green space, and created a better view of the new Middle Wing.
What do you believe to be the key reasons for the success of the project? Why?
The Sears building was prime real estate in the center of the mall that essentially split Fayette into two separate sections. By taking advantage of the opportunity to redevelop Sears into more productive small shop space, CBL’s leasing team was able to bring in new-to-market, highly sought retailers that previously had nowhere to go in the fully leased center. The addition of The Cheesecake Factory and H&M to the new Middle Wing was a large draw and attracted other tenants to the project.
Leasing created a strategic plan to bring in top dining and retail to the redevelopment. Fayette Mall enjoys a large secondary and tertiary market of shoppers, reaching far into eastern and southern Kentucky. The addition of The Cheesecake Factory and H&M provided additional incentive for those shoppers to travel to Lexington instead of other super regional centers in Louisville or Cincinnati, while also attracting other key tenants to the project.
How did you determine the business success of the project? (Cite 'before' and 'after' statistics to back up the claim.)
Department Store sales volume vs. New Middle Wing sales volume
o Sears: $30,000,000 (per year)
o Middle Wing: $46,607,571 (Nov. 2014-Oct. 2015)
o 55.36% increase
Overall mall sales volume increased by 27% (Nov. 2014-Oct. 2015)
38% over sales volume projections for first two months after opening (Nov.-Dec. 2014)
Additional leasing activity spurred throughout the mall with the addition of H&M, The Cheesecake Factory, Vera Bradley, Oakley, Altar’d State, Janie & Jack, L’Occitane, Eddie Bauer, Swarovski, Brighton Collectibles, Bevello and Michael Kors
Existing tenants invested in the redevelopment and took on the expense of renovating their stores. Coach, Victoria’s Secret, New York & Company, Express and Bath & Body Works all recommitted to the property and the Lexington market by making updates and improvements to their stores which complemented the enhancements being made to the center.
Retailer feedback:
o “Our customers have been absolutely thrilled with the new wing. We’ve seen about a 20% increase in transactions.” –Aveda Salon Manager
o “We have absolutely seen increased traffic and sales and have had higher transaction counts since the new wing has been open.” –Buckle Store Manager
o “We have done awesome here! Way better than we ever expected. It’s a great crowd, especially on the weekends.” –Pandora Store Manager
o “Brighton is doing a lot better than everyone anticipated. Our DM and the company gave us all kinds of goals and we’ve already doubled them and we’ve only been open three weeks.” –Brighton Store Manager
If the center was kept open during construction, explain what measures were taken to ensure shopper safety and main shopper traffic, and what impact the work had on business.
Since passing through Sears was the only way customers could get from North Mall to South Mall, it was critical that the project team kept the customer pass-through intact. The team used a multi-phased approach in order to ensure an uninterrupted shopping experience.
First, a temporary, well-lit, climate controlled, easy to navigate tunnel from one internal mall entrance to another was created to ensure customers could pass through the Sears building safely during the demolition phase. After demolition, the project team created a protected, exterior pedestrian walkway around the west side of Sears to allow customers to walk around Sears while construction on the new mall concourse was completed. During the seven-month construction period, the marketing team educated shoppers about the tunnel and the new development by posting architectural renderings and information about the exciting new retail lineup. A comprehensive signage plan was developed and installed along the pathways in order to inform customers of changes and ensure consistent traffic flow.
Greeters were stationed in the tunnel to answer questions, direct shoppers and provide a sense of security. After the new concourse was completed, a barricade was constructed to allow customers to travel along the new mall concourse while construction was completed in each interior tenant space. On the front exterior of the redevelopment, a staging area was created for the development of the new front retail and dining, and fencing was installed with signs featuring architectural renderings of the completed project.
In addition to the physical improvements, what ancillary measures were taken to enhance the center?
A number of ancillary measures were taken to enhance the overall experience at Fayette Mall. Some of those include the addition of a baby grand player piano, vibrant artwork throughout the Middle Anchor promoting Fayette Mall retailers, and colorful banners were installed on light poles along the front and back of Middle Anchor entrances to draw attention to the new wing as well as highlight the wide array of options available at the center.
Charging stations were also installed in common areas throughout the center as an added convenience for shoppers.
Since the Middle Anchor opened at the beginning of the holiday season, adding to the holiday experience at Fayette was a top priority for the team. Along with a new Santa Reception area and overhead décor throughout the center, a “Wake Up Santa” event was hosted in the Middle Anchor to attract families on the evening of the Grand Opening of the Middle Anchor. This event continues to draw as many as 5,000 people annually. Additionally, a 30’ synchronized light show Christmas Tree was installed at the front entrance to draw guests during the holiday season. The Middle Anchor has become the primary event location to host traffic-driving events and performances throughout the year.
As part of ongoing marketing efforts, Marketing Director, Sarah Enlow, hosts a MAXI Gold award-winning weekly television fashion series on the local ABC news that features stores throughout the mall, including an emphasis on the new stores located in the Middle Anchor.
Describe any new marketing and/or re-leasing approaches successfully implemented during the period.
CBL knew that a strategic and aggressive marketing and leasing plan was needed for the Middle Anchor. Marketing and leasing worked in tandem to create presentations and creative new ways to approach The Cheesecake Factory and H&M, knowing if these big names signed on, other retailers would follow suit. Retailer visits were enhanced with greetings from CBL’s founder and Chairman of the Board, Charles Lebovitz, as well as other members of the home office team. Each retailer visit was unique and tailored to the particular retailer and included market tours and detailed plans for the new Middle Anchor. The CBL team hosted retailers with a VIP red carpet experience featuring premium tours of Fayette Mall, Kentucky-themed gifts and exclusive experiences local to Lexington, including Keeneland Race Course. Marketing engaged current tenants to be co-owners and spokespeople for the project, holding regular construction update meetings throughout the year, which generated excitement throughout the center. Existing retailers acted as ambassadors for the project by providing video testimonials regarding the importance of the redevelopment to Fayette Mall and the overall success it would create for the center that the CBL leasing team showed to prospective tenants.
No
If yes, at what level?
Describe the project's central approach to sustainability such as energy and water use, the internal environment, pollution, transport, materials, waste, ecology and management processes.
Supporting Marterials
Documentation
Tenant Mix / Merchandising Plan
Maps / Floor Plan
Photo Gallery
Audio / Video
Project Information
Description of Entry
Fayette Mall in Lexington, Kentucky, is one of the most productive properties in the CBL & Associates Properties, Inc, (CBL) portfolio. The center has always maintained full occupancy - to the point that it had become problematic. The mall could not accommodate the retailers that the market demanded, such as The Cheesecake Factory and H&M. When Fayette Mall expanded in 1993, adding a South Wing, Sears became a pass-through between the North and South Wings, which caused customers to perceive Fayette as not one mall, but two. For over 10 years the mall team struggled to maintain a cohesive image and keep traffic flowing between the North and South malls. CBL's pro-active decision to purchase Sears and redevelop the space would solve numerous problems and would give CBL's leasing team the GLA it needed to bring in new, higher-end tenants in order to remain competitive in the marketplace.
Shopping Center Information
Type of Project
Regional Center
Other
NA
Physical Characteristics of Project
Mall
Other
NA
Total Acreage of Site
82.6
Total Acreage of Site
Before Renovation / Expansion | After Renovation / Expansion | Net Difference: plus or (minus) | Number of Levels |
82.6 | 82.6 | 0 | 2 |
Other Uses: Office
Other Uses: Hotel
Other Uses: Residential
Other Uses: Residential
0
Other Uses
NA
Other Uses
0
Trade Area/Cachement Area Information
Project Trade Area
Middle Market
Population of Primary Trade Area | Population of Secondary Trade Area | Annualized percentage of shoppers anticipated being from outside of trade area (e.g., tourists, conventioneers) |
516000 | 374000 | 7.5 |
Retail Information
Total Retail Space
1352870
Total Acreage of Site
Before Renovation / Expansion | After Renovation / Expansion | Net Difference-Plus or (minus) |
82.6 | 82.6 | 0 |
Gross Leasable Area (small shop excluding anchors)
107965
Gross Leasable Area (small shop excluding anchors)
Before Renovation / Expansion | After Renovation / Expansion | Net Difference-Plus or (minus) | Total Number of Retail Stores (excluding anchors) |
1313252 | 1352870 | 39618 | 150 |
Total Number of Retail Stores (including anchors)
154
Major Tenants
As part of CBL's Sears redevelopment at Fayette Mall, CBL's leasing team was able to attract and/or provide new, updated spaces to the following tenants:
- H&M
- The Cheesecake Factory
- Altar'd State
- Oakley
- Eddie Bauer
- Swarovski
- L'Occitane en Provence
- Very Bradley
- Teavana
- Janie and Jack
- Clarks
- Kinnucan's Specialty Outfitter
- New Balance
- Travinia Italian Kitchen and Wine Bar
- Newk's Eatery
- Jos. A Bank
- Chipotle
- PINK
- Buckle
- Bath & Body Works
Parking Information
Number of Parking Spaces Provided
5415
Deck Parking
No
If deck parking, list vehicle capacity and number of levels of parking structure and briefly describe how structure connects to center.
How many parking space are required by code?
5411
Development Schedule
Original Project Opening Date
11/7/2014
Official Project Opening Date
11/7/2014
Professional Recognition
Development Company
CBL & Associates Properties, Inc.
Owner
CBL & Associates Properties, Inc.
Production or Executive Architect
Craig Wasserman
Graphic Designer
Lighting Designer
Landscape Architect
General Contractor
Graycor Construction
Management Company
CBL & Associates Properties, Inc.
Finance Company
CBL & Associates Properties, Inc.
Summary
Entry Summary
Describe the characteristics of the project you are submitting for an award.
Fayette Mall in Lexington, Kentucky, is one of the most productive properties in the CBL & Associates Properties, Inc. (CBL) portfolio. The center has always maintained full occupancy to the point that the mall could not accommodate new retailers seeking to enter the market. With interest from in-demand retailers like The Cheesecake Factory and H&M, CBL knew that an expansion was vital for Fayette Mall to maintain its status as the powerhouse retail destination in the market. Unfortunately, Fayette Mall was essentially land-locked, with limited opportunity to expand beyond its current footprint.
In 1993, in order to satisfy retailer demand at the time, Fayette Mall added a South Wing and Sears essentially became a pass-through between the North and South Wings. This prompted shoppers to perceive Fayette not as one mall, but two. For over 10 years, the mall team struggled to create a feeling of cohesiveness and keep traffic flowing between the North and South malls.
CBL evaluated the situation and made the bold decision to purchase Sears and redevelop the space.
This proposal carried with it a huge risk. Sears was one of Fayette Mall’s original anchors, having opened in 1971, and Lexingtonians were loyal to it. In fact, it was one of Sears’ best performing stores in terms of sales per square foot. Despite the success of this location, CBL knew that Sears was closing stores nationwide and that it had an opportunity to be pro-active, improve the overall flow of the mall, and increase productivity.
In what ways do you feel that other developers can benefit from your experience?
Underperforming anchor locations are a universal problem in the shopping center industry. Traditional anchor stores occupy large quantities of space and don’t generate nearly as much income for owners as other retail or non-retail uses potentially could. Our experience with this project can show other developers how prime anchor real estate can be reimagined in order to breathe new life into a tired section of the mall and transform the property as a whole.
Portions of the second floor of Sears were removed to create a more open feel and provide views to H&M’s upper level. This project capitalized on the opportunity to enhance the entire exterior of the Sears box by adding outward facing shops and restaurants and create an outdoor common area space for shoppers to gather. The addition of exterior facing shops created a streetscape atmosphere and gave CBL the opportunity to bring in names like The Cheesecake Factory, Kinnucan’s and Chipotle.
Was this project a public-private partnership or joint effort with a governmental entity? If so, what is the name of that agency, and what was the nature of their involvement in the project?
Not applicable
Describe the financing involved in the project.
CBL did not finance this project but used available free cash flow.
If you had this project to do over again, what would you do differently? Why?
CBL has been very pleased with the outcome of this project, however, a few small tweaks would be made if we had the opportunity to do the project over again. We were limited in the amount of the second level of the former Sears that we could remove. If we were to repeat the project, we would work to push the envelope and remove more of the second level to open up the concourse ceiling and bring more natural light into the concourse. Additionally, in retrospect, we should have incorporated more technology into the common areas to provide additional customer touchpoints and encourage online engagement in an offline environment.
New Developments
Explain what specific design and construction problems were solved or how new standards in the areas of design and construction were established.
Describe what you feel to be the key reasons for the success of the project (environmental enhancements, space utilization, construction costs, and the like).
Was the developer required to make an investment in the community? If so, explain what had to be done and what the impact was on the community.
Sustainable Design
Is your project ISO, LEED, ARUP or BREEAM certified?
No
If yes, at what level?
Describe the project's central approach to sustainability such as energy and water use, the internal environment, pollution, transport, materials, waste, ecology and management processes.
Supporting Marterials
Documentation
Tenant Mix / Merchandising Plan
Maps / Floor Plan
Photo Gallery
Audio / Video
Description of Entry
Fayette Mall in Lexington, Kentucky, is one of the most productive properties in the CBL & Associates Properties, Inc, (CBL) portfolio. The center has always maintained full occupancy - to the point that it had become problematic. The mall could not accommodate the retailers that the market demanded, such as The Cheesecake Factory and H&M. When Fayette Mall expanded in 1993, adding a South Wing, Sears became a pass-through between the North and South Wings, which caused customers to perceive Fayette as not one mall, but two. For over 10 years the mall team struggled to maintain a cohesive image and keep traffic flowing between the North and South malls. CBL's pro-active decision to purchase Sears and redevelop the space would solve numerous problems and would give CBL's leasing team the GLA it needed to bring in new, higher-end tenants in order to remain competitive in the marketplace.
Size of Store
Company Name
Architect
Designer
General Contractor
Type of Merchandise
Opening Date
If Renovation, Store's Original Opening Date
Store's Renovated Opening Date
Summary
Retail Store Design
Provide detailed information on the design concept, including background on the reasons for the concept, its development and impact on store image and sales performance.
Describe the integration of interior, storefront and merchandise displays.
Describe the specific materials used in creating the new concept.
If this is a renovation, describe the impact on sales. If this is a new store, comment on sales performance to date versus the planned performance.
Total cost per square meters including design, leasehold improvements and fixtures.
Documentation
Floor Plan
Audio / Video
Fayette Mall Sears Redevelopment
Category
Renovations/Expansions > Retail projects over 500,000 sq. ft. of total retail space
Description
3401 Nicholasville Road
{40503 Address#projectAddress.City}, Kentucky 40503
,
Winner Status
- Commendation