Arizona’s Richest Person Buys a Shuttered Mall in Phoenix Suburb for a Mixed-Use Reinvention
Now under the full ownership of Arizona’s richest person, a shuttered mall in the Phoenix suburb of Mesa is poised to become a massive mixed-use project. The Phoenix Business Journal reported that Verde Investments, a real estate firm owned by billionaire Ernest Garcia II, recently wrapped up the final land purchase to pave the way for its proposed Fiesta Redefined project. Verde plans to turn the site of the former Fiesta Mall into a mixed-use development with as much as 1.85 million square feet of retail and commercial space, 4,000 housing units and more than 500,000 square feet of open space. Fiesta Mall opened in 1979 and closed 40 year later in 2019. Boasting a net worth of nearly $15 billion, as estimated by Forbes, Garcia is the largest shareholder of online car dealer Carvana.
Ernest Garcia II, then chair of Carvana, on the floor of the New York Stock Exchange at company’s initial public offering on April 28, 2017. Photographer: Michael Nagle/Bloomberg via Getty Images
North Charleston Mixed-Use Development Will Add a Design District
South Carolina’s Navy Yard Charleston district of makers, retailers, dining and recreation is reminiscent of other Jamestown projects like Industry City in Brooklyn, New York; Boston Design Center; and Ponce City Market and Westside Provisions District, both in Atlanta. Photo credit Navy Yard Charleston
Famed for its colorful architecture and award-winning cuisine, the Charleston, South Carolina, area now is capitalizing on its stature in the interior design world, too. The Navy Yard Charleston mixed-use development, led by Jamestown, plans to launch the Charleston Design District this fall. The district will feature as much as 150,000 square feet of showrooms for home furnishings businesses. Kravet, Schumacher and Textures will set up their first Charleston-area outposts alongside design businesses that already operate in the neighborhood. Some of the showrooms will occupy repurposed turn-of-the-century buildings on Storehouse Row.
Photo credit: Navy Yard Charleston
The district will even offer dining options, including an 8,200-square-foot rooftop eatery from acclaimed Charleston restaurateur Steve Palmer. Navy Yard Charleston eventually will encompass more than 3.2 million square feet of retail, office, residential, retail, dining, entertainment and cultural space.
FROM THE C+CT ARCHIVE: Jamestown Goes Suburban
Developments Along South Florida Light-Rail Draw Retail
Brightline MiamiCentral Photo courtesy of Brightline
New retail is likely to come along for the ride to serve people moving into residential projects along Florida’s $6.2 billion Brightline light-rail system, completed in 2022. The New York Post reported that the six train stations along Brightline’s route — Miami, Aventura, Fort Lauderdale, Boca Raton, West Palm Beach and Orlando — “are now emerging as major commercial centers.” Transit-oriented developments tend to attract retailers. For instance, the Brightline MiamiCentral mixed-use project has six retail tenants slated to open this year, including AT&T, Brooklyn Dumpling Shop and Verizon. Among the current retail tenants there are Chick-fil-A, Powerhouse Gym and Starbucks.
MORE FROM C+CT: Development Is Lining Up Behind Seattle’s Light-Rail Push
OIlie’s Bargain Outlet Sees Opportunity Amid Retail Troubles
Photo credit: tanvirshafi - stock.adobe.com
Tariffs, bankruptcies and store closures are paving a hard road for a number of retailers, but closeout retailer Ollie’s Bargain Outlet sees an upside to these disruptions. “This all bodes well for Ollie’s,” president and CEO Eric van der Valk said Wednesday during an earnings call. “With so many retailers closing stores or going bankrupt in the past year, there are a considerable number of abandoned customers, merchandise, real estate and talent in the marketplace. We think there is an opportunity to take on some of these assets in a manner that strengthens our competitive positioning, broadens our footprint and bolsters shareholder returns for years to come.”
“There are a considerable number of abandoned customers, merchandise, real estate and talent in the marketplace.”
Along those lines, Ollie’s recently agreed to buy leases for 40 Big Lots stores that are closing, having previously purchased 23 Big Lots leases. Last May, Ollie’s bought 11 former 99 Cents Only stores, both owned and leased, for $14.6 million. In the 2025 fiscal year, the retailer aims to open about 75 stores, up from 50 in the previous year. As of Feb. 12, Ollie’s operated 565 stores.
FROM THE C+CT ARCHIVE: Ollie’s CEO: We Want 950 Stores
Forever 21 and Joann Are Selling More than 1,000 Store Leases
Photo credit: Marcus Jones - stock.adobe.com
More than 1,100 leases for two bankrupt retailers, Forever 21 and Joann, are flooding the market. RCS Real Estate Advisors is selling leases for the roughly 360 stores that fast-fashion retailer Forever 21 is selling. RCS said the leases encompass 7.6 million square feet, with the average store measuring 21,000 square feet. Forever 21 filed for voluntary Chapter 11 bankruptcy protection on Sunday. Battered by overseas fast-fashion competitors, Forever 21 is conducting going-out-of-business sales at all its U.S. stores. This is the second bankruptcy filing in six years for the retailer. In 2019, it sought bankruptcy protection and eventually closed 200 stores.
Simultaneously, GA Group and A&G Real Estate Partners are auctioning leases for 790 Joann fabric and crafts stores, along with leases for five of the retailer’s distribution centers. The auction is scheduled for April 22. The store leases range from 7,500 to 52,000 square feet. Going-out-of-business sales are underway at Joann stores. The retailer filed for Chapter 11 bankruptcy protection on Jan. 15.
Dollar General Will Close 141 Stores
Photo credit: Brett - stock.adobe.com
As leases for Forever 21 and Joann stores are being marketed, discount retailer Dollar General is paring its portfolio. The company will close 96 Dollar General stores and 45 Popshelf stores during the first quarter of the 2025 fiscal year, which started on Feb. 1. It also will convert six Popshelf stores to the Dollar General format. “While this is less than 1% of our overall store base, those stores, many of which are in urban locations, have become increasingly challenging to successfully operate,” CEO Todd Vasos said during an earnings call. As of Jan. 31, Dollar General operated 20,594 stores.
How U.S. Retail and Food Services Sales Fared in February
U.S. retail and food services sales minus motor vehicles and gas grew 3.5% year over year in February, down from January’s 3.6%. Sales at food services and drinking places grew only 1.5% year over year, the lowest rate in four years. “The weaker-than-expected figures may be an early sign of consumers beginning to reign in their spending as concerns grow about the overall U.S. economy and their personal financial health,” said ICSC research manager Matthew Panfel.
February Year-Over-Year Growth in U.S. Sales
Seasonally adjusted, advance data
| Health and personal care stores | 6.7% |
| Nonstore | 6.5% |
| Furniture and home furnishings stores | 5.5% |
| Miscellaneous store retailers | 5% |
| Food-and-beverage stores | 3.9% |
| General merchandise stores | 3.4% |
| Food services and drinking places | 1.5% |
| Clothing and clothing accessories stores | 1% |
| Building materials and garden equipment and supplies dealers | -0.7% |
| Sporting goods, hobby, musical instrument and bookstores | -3% |
| Electronics and appliance stores | -5.3% |
By John Egan
Contributor, Commerce + Communities Today