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Friday, July 25, 2008
Major Retail Coming to Columbia Heights
Columbia Heights is poised to become the shopping destination for the entire Washington, DC area. Hundreds of thousands of square feet of retail space are in the works including DC USA, a 500,000 sq. ft. retail complex that will include major retailers such as Target, Best Buy, Bed Bath and Beyond, and possibly Whole Foods Market! More exciting retailers are planning to open in the newly renovated Tivoli Square and other developments across Columbia Heights. Read more in the Retail News section.
As mentioned in the previous article, Michael Wilkinson of Windsor Consulting was given the opportunity to tour the DC USA retail complex this past Friday. During the tour, he had a chance to talk in depth with Drew Greenwald, president of Grid Properties (the lead developer for DC USA), about the latest retail developments at DC USA. Wilkinson was kind enough to share the information he gathered with us.
DC USA Retail Updates
Written by Michael Wilkinson
DC-USA, as most people in the neighborhood are aware, is nearing completion, with a number of the retailers even beginning to stock their shelves. Thirty interior photos here.
Target is holding a VIP reception on Tuesday, March 4th, and the city is hosting a ribbon cutting the following Saturday (the 8th), which is the retailer's "soft opening." That store officially opens to the public on Sunday the 9th. Other retailers will stagger their openings over the subsequent 6-8 weeks. Almost ready: Best Buy, Bed Bath & Beyond, Marshall's, Lane Bryant and Best Buy.
I had a lengthy conversation on Friday February 29th with GRID Properties president Drew Greenwald, and learned some very interesting things while walking through the space with him.
First and most exciting, the developer is in the late stages of negotiations with Ellwood Thompson's organic grocery. Absolutely true, and absolutely terrific. The issue hanging things up is the precise placement of the store. Both ET and another retailer are vying for overlapping pieces of the building directly behind the facade of the former post office, in the middle of the 1400 block of Irving Street. From what I understand from Greenwald, ET wants to be placed fully and directly behind the restored facade, but the other retailer needs a portion of the area for access to a second story level; ET would look like it was directly behind the old facade, but its actual space would be offset somewhat to the left or right (I didn't catch that detail). Greenwald noted that the steady support from the neighborhood had been instrumental in making the case to ET management. He also noted that, as a smaller retailer with only one store in Richmond, the Columbia Heights store represents a very significant change for them, and they have been slow and careful in going through the process of managing the big change. Additional neighborhood support and encouragement at this stage would be very helpful.
Also, on the heels of some recent reporting, Greenwald told me they are talking to REI, but that REI seems to be reluctant to see past its comfortable suburban market niche. He noted that the neighborhood letters of support to him and to CM Graham have been welcome, but that the pressure should be shifted to REI -- Greenwald is not the one who needs to be convinced. I think the impression he gets is that REI does not think urban shoppers would patronize an outdoors store like suburban shoppers do.
In addition, with about 80,000 SF of retail remaining to lease, GRID has released their initial retail broker and is seeking a new retail broker to finish the job. Specifically, they hope to shift the focus for the final push to higher-end retailers to balance the retail mix out. Greenwald noted that he's been surprised and disappointed at the resistance from two specific categories, outdoors and booksellers, mentioning REI, Barnes & Noble and Borders specifically as retailers he thought would fit in particularly well.
Also of interest: there are some important gaps along the high- profile 14th Street side of the development, representing an opportunity (if the upscale strategy works out) for the developer to change the face of 14th Street. Radio Shack, Lane Bryant, Children's Place, Payless Shoe Source, Mattress Discounters and Vitamin Shoppe are all working on their spaces. Greenwald thought adding some lifestyle retailers such as Banana Republic and Urban Outfitters, in addition to the bookstore and sporting goods/outdoors retailer, would really benefit the retail mix.
Two interesting and interconnected pieces: local retail and food options. It seems that most of the local retailers are food retailers, including a couple of locally-owned franchise businesses carrying national brand names: Quizno's, Maggie Moo's. There is also Desi's Chicken, a pretzel place and a sweet potato place. If my memory of our conversation serves me, the Quizno's franchisee has dropped out, and the original Maggie Moo's franchisee has sold the franchise to another business person, sending the lease back to the drawing board. Not surprising, but working with local retailers can be more challenging than working with large national chains. The planning cycle is much shorter. People's priorities change, financial situations sometimes don't materialize in time, etc.
Comments
Written by AllieO on 2008-03-03 14:14:41I would also love to know who to contact re: interest in having a book store retailer in DC USA.
Zinnia Caribbean Restaurant Written by soulshadow55 on 2008-03-03 21:10:47Hi Everyone,
I walked by the Mall last night. I looks really nice - can't wait for it to open. Quick question - does anyone know anything about the new Caribbean restaurant opening in the new building across from the Mall. I saw in their window an advertisement for Zinnia's Caribbean restaurant. My grandfather was from Jamaica and I would love to patronize a Caribbean restaurant. Does anyone know if it's a chain restaurant or some local restaurant owners? Any info would be fun.
Thanks,
R. Peterson
Written by Go CH! on 2008-03-03 21:26:48It will be a locally owned tapas style lounge....sounds cool. Back to DC USA....Any mention of McDonalds or other places to get a quick bite in the food court?
Written by SEH on 2008-03-04 09:23:14Any word on a yoga studio in the Highland or DC USA?
yoga at Highland Park Written by
on 2008-03-04 11:54:02The developer of Highland Park was negotiating with a yoga studio for one of the retail spaces in the building, but the studio ended up declining to commit. No word on a yoga studio at DC-USA. Perhaps worth bringing to the attention of the developer?
retailers: categories and brands Written by
on 2008-03-04 12:19:08How about this: Let's come up with a thorough list, now that we know how much space the developer has left and what kinds of retailers he is looking for, of categories and specific stores we would like them to pursue.
As noted in my article, the developer is currently seeking a new retail broker to represent it in the final lap, and wants to take a turn toward the upscale.
There is an event this evening in the facility. I will see if I can get a sense for the size and location of each of the available spaces and report on it tomorrow. Then, let's see if we can come up with a list of categories and specific retailers to advocate.
We are going to have to advocate on several fronts: - with the developer (who will probably have the same goals as we do) - with the management of the specific retailers we identify - with the future new broker for the developer - with the brokers of each individual retailer we identify - with the broader community, including city government and city council, as may be appropriate.
Keep in mind that the development needs a certain percentage of locally-owned businesses. Let's think about what kinds of local businesses we would like to see. The yoga studio is an excellent start.
If you're reading this strand, don't hesitate to post your thoughts. Others on the board may be able to do a little research on how to contact the right people.
FYI, so far, we have: - REI (community and developer want) - Elwood Thompson's (community and developer want) - Banana Republic, Urban Outfitters (developer has mentioned - Barnes & Noble, Borders (community has strongly advocated, developer has had difficulty convincing retailers)
OTHERS? LOCAL BUSINESSES -- preferably not just locally-owned franchises)
Brand suggestions Written by
on 2008-03-04 14:57:30I just moved to the area last weekend and am really excited to see these kind of contributions in this area!
My two suggestions unfortunately are not local businesses, but along with the other suggestions, what about an L.L. Bean Store?
On another note, I grew very fond of Buffalo Wild Wings in college and have not seen any in NoVA or DC. Maybe the community would support this kind of sportsbar/wing joint?
It's really a shame that Maggie Moo's pulled out, but what about Kaleidoscoops? There's one in Kingstowne, VA.
maggie moo's not pulling out Written by
on 2008-03-04 17:32:01don't despair, Andrew, the owner of the franchise has changed, that's all. the store isn't pulling out of the development! FYI, there's a frozen custard store across the street in the center of the Park Triangle retail section, if you really needed a sweet fix now...
Welcome to the neighborhood.
Written by Newton St on 2008-03-04 18:02:03A Borders or a Barnes and Noble would be pretty sweet. I can't help but wonder that while Bed, Bath and Beyond, Best Buy, and Target will b ring in hordes of people, they can do a lot more. Adding a book store, possibly another national retailer (an Old Navy?) would really put this over the top.
Quick question, I read a post article saying Target opens tomorrow, but its opened for the public on the 9th? I'm confused.
Written by RJH on 2008-03-04 20:19:30http://www.rei.com/aboutrei/bod.html
Looks like the REI Board of Directors is meeting at the end of the month. There is an email address on that link - maybe the board should hear from some of their members about an REI in Columbia Heights. I'd imagine there are many of us in the neighborhood, maybe we should contact the board and let them know about the area, its outdoor opportunities and all the chances to use their gear around here. I suppose you could mention the HUGE potential for North Face jacket sales among the kids too...or maybe leave that part out.
