Loveland – Many storefronts at the Outlets at Loveland sit vacant, but the center’s owner says it’s investing millions of dollars in a turnaround that has already netted new tenants, including Coach and a Nike Factory Store.
Just last week, a Polo Ralph Lauren Factory Store opened, and an Ann Taylor Factory Store is slated to open in July. Coach and Nike are set to open in the next month.
The new tenants are part of a long-term strategy by Craig Realty Group, which bought the Loveland outlets along with the Outlets at Castle Rock and the Outlets at Silverthorne in late 2005.
Steven L. Craig, president and chief executive of California- based Craig Realty, said his company is pouring more than $20 million into the three centers in an attempt to reverse what he described as years of mismanagement by the previous owners.
“There is a massive retenanting going on right now with some of the biggest names in the industry,” he said. “People are starting to recognize that we’re back on the map.”
Craig has a good reputation in the retail industry, according to Linda Humphers, editor of trade publication Value Retail News.
“He doesn’t rush to do things. He takes his time and does things correctly,” she said. “I think it’s a three- to five-year plan to turn those centers around, but he’ll definitely do it.”
The company initially focused on Silverthorne, where the previous owner was already in the midst of a $13 million renovation that included a new facade and signage. That helped attract new tenants such as Nike, Banana Republic and Calvin Klein.
The company plans to invest another $2 million in the property in the next year, said Craig.
Craig Realty, which owns 12 outlet malls nationwide, is now embarking on similar upgrades at Loveland and Castle Rock.
Of the three properties, Loveland has struggled the most, Craig admitted. Its current vacancy rate is 22 percent. City sales- tax revenues for the center dropped to $1.04 million last year, down 14.75 percent from 2005.
The mall has also seen increased competition from the nearby Promenade Shops at Centerra, a major lifestyle center that opened in October 2005.
Craig Realty said it expects to open 10 new stores in the center this year. That should help revive the area, said Mary Beth Jenkins, a Denver retail broker and consultant.
“Those are strong names, and adding new blood to the project is what customers want,” she said. “If they can continue to add unique tenants, they’ll be able to compete with Centerra.”
Craig said he plans to spend $8 million on improvements at Loveland this year. They’ll including a new entrance off U.S. 34, new signage and facade upgrades.
Several existing retailers said they expect the improvements and new tenants to stimulate more foot traffic.
“Once the new Nike store gets here, and with a new entrance and the new facade, this mall is really going to pop,” said Veronica Peterson, manager of Toy Liquidators, the KB Toys outlet in Loveland.
Castle Rock, which has a roughly 15 percent vacancy rate, is also getting new signage and upgrades to its food court. Two new stores opened recently, including a Gymboree Outlet, and as many as five more are on their way.
Year-to-date sales are up more than 10 percent, Craig said.
“It takes time to reverse the negative effects of bad management,” he said. “We think Colorado is a great market. You’re going to continue to see improvements from us.”
Staff writer Julie Dunn can be reached at 303-954-1592 or jdunn@denverpost.com.
BY THE NUMBERS
14.75%
Drop in Loveland sales-tax revenue from the city’s outlet mall in 2006, to $1.04 million
22%
Vacancy rate at the Loveland outlet mall
15%
Vacancy rate at the Castle Rock outlet mall
