GlobeSt.com UPDATE: 350,000-SF Hybrid Center Sets Retail Hook

The Highlands of Flower Mound will deliver in one shot in March 2003, the handiwork of Direct Development of Dallas led by principals David Watson and Syd Hurley. The duo closed on the 35 acres just four months ago, shortly after signing the final papers for a 174,000-sf Super Target and lining up the leasing team of Steve Greenberg and Karen McCulley, both executive vice presidents with Dallas-based Weitzman Group.

In the coming two weeks, final pacts should be in hand with five anchor retailers, Watson tells GlobeSt.com. Letters of intent are signed and negotiations are under way for a 30,000-sf Ross Dress for Less, 30,000-sf Linens N' Things, 18,000-sf World Market, 12,000-sf Party City and 10,000-sf Pier I.

The tenant profile teams traditional power center retailers with lifestyle-oriented community services, mostly in inline shop space. The fast-paced signings are due to pent-up demand and the $32-million center's strategic positioning at two primary thoroughfares--FM 2499 and 407--in a high-density suburb fueled by 13 established and developing subdivisions.

The national retail line-up is a familiar roster, missing only Old Navy which has taken a temporary bye on more stores. "I believe this group was looking to land together," Watson says. The retailers' choice happens to be in a trade area with a 100,000-plus population, $97,936 average household income, $82,354 median income and average annual growth of 12.5%, according to Greenberg.

Activity is such that only 50% of the 40,000-sf available space is uncommitted as are three pad sites. A bank is waiting to sign on the dotted line while McDonald's already has its out-parcel in hand. Talks are under way with casual dining restaurateurs for the other out-parcels. Greenberg says the "no vacancy" sign should be ready to hang on the entire project right after ICSC's annual convention.

The developer has lined up a full Dallas team for the project. Gary Johnson of EnviroPlan designed the center. Spring Valley Construction holds the general contractor's award and Bryan Adams of SMR is the landscape architect.

Direct Development specializes in grocery-anchored centers and has worked extensively with Target Corp., a relationship that jumpstarted Highlands at Flower Mound. The build-and-hold private company owns a half dozen retail centers in Dallas-Fort Worth, including another in Flower Mound and one in neighboring Lewisville.