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New Approach for Chapel Square
Apartments, offices expanded in mall plans
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Business New Haven
1/19/2004
By: Mitchell Young
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New Approach for Chapel Square
Apartments, offices expanded
in mall plans
Careful observers in downtown New Haven have noticed that change appears to finally be taking hold at the Chapel Square Mall. Nearly one year after lead developer Lehr Jackson claimed that several national retailers would be opening in the facility in the fall of 2003, a revised plan has been crafted by financial backers Lubert Adler of Philadelphia and its New Haven partner, developer David Nyberg.
So far, though, the only outward sign of change is new floor-to-ceiling windows and a large boarded up storefront on the mall's Chapel Street facade. The new windows have appeared along the Chapel and Temple side of the building and will eventually stretch down the Church Street block as well.
The new glass has revealed a new and what some may argue innovative strategy in re-using the three-time loser mall building. Nyberg says he has now leased approximately 15,000 square feet of office space on the second floor of the facility, and will create approximately 75 apartments on the second floor as well. To create living space, the roof covering the existing interior of the mall will be removed and an outdoor courtyard with apartments overlooking it will be built.
Additional apartments will be built along the Church Street side on the second floor as well. As in the original plan the space on the first floor will be retail space that faces out unto the street, finally abandoning the interior small project.
With the new multi-use concept, Chapel Square Mall will join its Hartford counterpart, the Civic Center Mall, in finally surrendering the downtown mall concept to the dictates of the marketplace after decades of disappointing results, multiple renovations and public-sector subsidy.
According to Anthony Bialecki of New Haven's economic development department, "Our agreement never specified what type of development would be on the second floor. We had hoped it would be retail, but there is not a good track record of second-floor retail. There had been discussion about a major fitness facility, but that did not pan out."
Added one local developer, "Even the Trump Tower has had trouble with second-floor retail."
Bialecki stressed that the city provided no subsidies, direct or indirect, to the project and chose Lubert Adler in part because the company did not require any. Bialecki confirmed that Jackson Ewing is still involved in the project and still pursuing national tenants but is no longer the lead force and that the project is taking a more local focus. He added, however, "The developers have asked us to talk to several prospective national tenants that are still showing interest and we confirmed our commitment to the project."
The adjoining 900 Chapel Street office tower, which was approximately 40-percent occupied, has now been renovated and is entirely rented. Included in the tower renovation were 33 apartments and 125,000 square feet of office space. The office space has been completely rented with the recent addition of engineering firm Wilbur Smith Associates, which occupies approximately 20,000 square feet of space.
The boarded-up Chapel Street storefront hides the build-out of a new Ann Taylor Loft store, which is expected to open next month. Ann Taylor Loft is the only "national" retailer attracted to the project so far. The existing Rite-Aid store is expected to build a new larger store on the Church and Crown corner of the mall. Rite-Aid will be joined by a Quiznos Subs and the probable return of Radio Shack, a longtime tenant of the original Chapel Square Mall.
Realtor Bill Silverman of Levey Miller Maretz, one of downtown New Haven's most vigorous retail boosters, had been skeptical of the mall's national tenant approach. Silverman won't confirm that his client - the restaurant Bacelona, with locations in Norwalk and Westport - would shortly sign a lease for space on the mall's Temple Street side. Silverman allows, "When they finally do turn the lights on at Ann Taylor, it will generate a great amount of interest in retail at the site." Ice cream retailer Cold Stone Dairy will also be locating on the Temple street side of the mall, Bialecki said.
One local Realtor said that the difficult retail history of the mall is keeping retail rates lower than further west on Chapel Street, with deals at the mall for local retailers in the $18- to $22-per-square-foot range likely. Retail sources say that the Gap location at 994 Chapel Street, which will soon be vacated, will likely be placed on the market for $35 per square foot for the street level.
The mall's 75 apartments are expected to become available for occupancy by summer's end - about the same time that developer Michael Schaffer will offer 83 market-rate apartments directly across the street on the corner of Church and Chapel (the former Strawberries building).
Says Schaffer: "We're not worried. It's like an auto retail row. I think it will help create a critical mass for downtown living. We feel we have a very good project and are building some very beautiful apartments. We are starting to see interest from people that currently live well outside of New Haven, from Fairfield County and Hartford."
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