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Today's News is reporting (http://detnews.com/article/20090424/BIZ/904240353/1001/Kresge+landmark+may+get+mix+of+shops) that a developer is looking to attract a bunch of retailers into the old Kresge Building on Woodward and State as a mall-like entity. A good sign, I guess, if the predecessor of K-mart can be brought back from the dead. It might happen soon, too. Here are some highlights from the article:
"For decades, downtown shoppers could walk into the Kresge Building at Woodward Avenue and State Street and buy a variety of goods, from hats and window shades to bath brushes and hair nets.
That one-stop shopping experience has long disappeared from downtown Detroit, except for a few national drug stores. But a Detroit developer hopes to return the historic building to some of its former retail glory: this time as a mini-mall with a mix of national retailers and local boutiques to be called the Shops at Kresge. "
"The odds for me to be successful are probably 10 percent," said Dennis Kefallinos, "But I'm committed to Detroit. I think Detroit has a lot of potential."
"Kefallinos envisions 120 retailers in 40,000 square feet of space that once housed the original S.S. Kresge 5 & 10, the forerunner of Kmart Corp. Plans call for specialty retailers on the first floor and clothing boutiques one level up. "
"The mall will open when 15 retailers commit to the project -- with a June target date. "
"A Web site advertising the downtown project, shopkresge.com, says the center will "offer stunning and countless boutiques that stock only the finest of gifts and other products or services." "
Into Detroit
12 years ago
Friday, April 24, 2009
ReplyDeleteKresge landmark may get mix of shops
His goal is to lure retailers to downtown Detroit site
Jaclyn Trop / The Detroit News
For decades, downtown shoppers could walk into the Kresge Building at Woodward Avenue and State Street and buy a variety of goods, from hats and window shades to bath brushes and hair nets.
That one-stop shopping experience has long disappeared from downtown Detroit, except for a few national drug stores. But a Detroit developer hopes to return the historic building to some of its former retail glory: this time as a mini-mall with a mix of national retailers and local boutiques to be called the Shops at Kresge.
"The odds for me to be successful are probably 10 percent," said Dennis Kefallinos, who also is the developer behind Russell Industrial Bazaar, an Albert Kahn-designed former factory complex turned into a small business incubator and marketplace.
"But I'm committed to Detroit. I think Detroit has a lot of potential."
Kefallinos envisions 120 retailers in 40,000 square feet of space that once housed the original S.S. Kresge 5 & 10, the forerunner of Kmart Corp. Plans call for specialty retailers on the first floor and clothing boutiques one level up. There is space in the basement for a grocer or other large retailer, according to Eric Novack, leasing manager.
The mall will open when 15 retailers commit to the project -- with a June target date. Most retail space measures between 120 and 400 square feet and will rent from about $600 to $1,000 a month, he said.
So far, Novack said, six tenants have signed: a chocolatier, shoe store, clothing boutique, sports memorabilia shop, purse store and Mediterranean café. Kefallinos' company, Dionysia Properties, has opened two ground-floor eateries, Woodward South restaurant and 5 and 10 bar, across from where Kresge's original cafeteria stood.
"People are looking for a destination spot," Kefallinos said. "Everybody knows Kresge's."
Kefallinos has owned the building, where S.S. Kresge launched his business in 1899, for about 10 years.
Local retail experts doubt the project could attract national chains.
"The market for a vibrant downtown shopping district is just not there," said Ed Nakfoor, a Birmingham-based retail consultant. "I just don't really see it becoming this thriving marketplace."
Jim Bieri, president of Bieri Co., a Detroit-based retail brokerage and consulting firm, said the project is better suited to artists and smaller boutique retailers trying to enter the Detroit market. With low rents and a straightforward setup, the Shops at Kresge could be a good starting point for aspiring entrepreneurs, he said.
A Web site advertising the downtown project, shopkresge.com, says the center will "offer stunning and countless boutiques that stock only the finest of gifts and other products or services."
Kefallinos said the mini-mall will be open daily and feature more upscale shopping than the Russell Industrial Bazaar, which opened in October and houses boutiques, eateries and artist space off I-75. He said he did not know the cost of the Kresge project. Tiffany Lake is moving her designer footwear boutique from the Russell Bazaar to the Kresge Building because she likes the idea of bringing a "higher-end mall to the city." Her shoes range in price from $85 to $500.
She said she hopes the Woodward Avenue storefront draws a strong weekday work crowd and downtown passersby.
jtrop@detnews.com (313) 222-2300