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After years of wrangling over the fate of The Mall at Shelter Cove, the 30-year-old shopping center will be torn down – except for Belk, which is currently the anchor of the mall – to make way for restaurants, retail stores and apartments.
The real estate partner of the Kroger Co., Augusta, Ga.-based Blanchard & Calhoun, bought the 42-acre parcel and the approximately 300,000 square feet of existing retail space on Aug. 10 from Petrie Ross Ventures of Annapolis, Md.
Construction is expected to begin early next year and the new center is expected to open by early 2013.
There is no new name and no firm tenants lined up for the site yet, except for department store Belk and a Kroger store. However, Mark Senn, of Blanchard & Calhoun, said, “We’re working on conceptual plans right now and discussing those with the town (of Hilton Head Island). Our plans are to develop a mixed-used property, which could include restaurants, some of the current tenants on the property, other interested parties already on the island and some from outside the local area.”
The Kroger Co. has developed several “super stores” in Ohio called “Kroger Marketplace.” Those stores not only carry groceries, but also home goods. Senn said that the new Kroger will primarily be a grocery store, but all options are being explored.
Glynn Jenkins, director of communications and public relations for Kroger’s Atlanta Division, which includes South Carolina, added in an email that “the new Kroger … will provide a unique and interactive shopping experience, designed to be a convenient and inviting addition to Hilton Head Island.”
Blanchard & Calhoun is also planning on developing apartments along the waterfront, said Steve Riley, manager of the Town of Hilton Head
One of the goals is to create what’s called a “lifestyle center,” which have been replacing traditional enclosed malls across the country. A lifestyle center is essentially an open-air commercial center that incorporates shopping, housing and leisure amenities. Senn said that they will incorporate the natural environment by taking advantage of the waterfront. He added that there will also be park space and walking trails.
The deal to purchase the Mall at Shelter Cove has been in the works for two years, said Senn, adding that the $17.3 million price was a bargain. “The first time the mall was sold, it went for $36 million. The second time it sold for $26 million. The $17.3 million was a good deal.”
Things had been sliding downhill at the mall for quite some time.
Over the last several years, the mall has been bleeding stores, including three as recently as July, when Coldwater Creek, Williams-Sonoma and The Shoe Dept. closed their doors. One of the mall’s anchor stores, Saks Fifth Avenue OFF 5TH, moved to the recently renovated Tanger Outlet 1 in Bluffton.
That $17.3 million sale price reflects the tough economy and the even tougher efforts to bring the fading mall back to life made by Walt Petrie, managing member of the partnership that owned the mall. Petrie wanted to build a 12-screen movie theater at the mall, but adding square footage on the site was one of the sticking points with the town. After two years of tangling with various town boards, the concept was approved by the Town Council in 2009. But, the deal fell through when Petrie could not get financing for the theater.
The town has been working with Blanchard & Calhoun on plans for the site, and the next step will be to take those plans to the town Planning Commission. After final approval from that board, plans will be forwarded to the Town Council for approval.
“Over 20-plus years, we’ve tried to reduce density in the town, but we’re now looking at things differently,” said Riley. “There’s a different attitude and mindset now. However, we still want it to be not just about making more money, but about what’s best for the community.”
By Sally Mahan
The mid-island question
While plans move foward for the site of the Mall at Shelter Cove, the greater question of master-planning the mid-island community has been raised by the Greater Island Council. These plans, which call for a master plan for this core area of the island including parks, open space, public amenities, commercial areas and more were presented to the Mayor in September.
Expect Monthly to keep you informed as developments progress on this crucial area of our community.
