406,342-SF Center Gets Dressed Up for Upcoming Competition

FORT WORTH-The city's western front, suddenly a hotbed of development activity, has one developer lining up dirt for another 750,000 sf of retail while another major force has latched onto an $18-million refinance to undertake a renovation of the 406,342-sf Ridgmar Town Square.

Don Silverman, president of Dallas-based Margaux Development Co., now controls or owns 71 acres that will be built out as Westover Village, eyed for a 750,000-sf, high-end collection of retail names. Meanwhile, his neighbor in the West Fort Worth pocket--Retail Plazas Inc. of Dallas--is fine-tuning a plan to reposition the 20-year-old, 75%-leased Ridgmar Town Square with a full-body makeover that will get under way within 75 days. As residents are aware, the upcoming projects neighbor a recent $70-million mall renovation and border a $50-million-plus retail proposal by yet another developer. For that story, click here.

Retail Plazas secured an $18-million, three-year, floating-rate loan from Merrill Lynch Mortgage Capital Inc. of New York City, retiring a $12-million loan with the Newark, NJ-based Prudential Financial Inc. and setting the renovation stage, Joseph Hevey, a managing director in Dallas for Holliday Fenoglio Fowler LP, tells GlobeSt.com. The Libor-based floater was written to an 80% loan-to-value for the 39-acre Ridgmar Town Square, he says.

"We needed a lender with a lot of flexibility and foresight. The loan will be used to greatly enhance the value," Hevey says, "and at the end of the day, we will be able to get a permanent loan." Retail Plazas has an option for a roll to permanent financing with Merrill Lynch or go back to the market.

Retail Plazas' leasing director Trey Hodge, whose father built the shopping center, says the repositioning plan has "two or three" anchors poised to sign in the coming month for 20,000 sf to 30,000 sf, sitting empty nearly four years. The deals will take the center to practically 90%, the same level that it was four years ago when Hodge sold the 316,063-sf block to Retail Plazas for Reliance Insurance Co. of New York City. Mervyn's, Olive Garden, Jack in the Box and Taco Bueno own their spots.

David Levinson and Chris Thomas with Dallas-based Retail Connection are working the anchor deals while Hodge focuses on filling the shop space. Last month, Jo-Ann Stores Inc. of Hudson, OH signed a 10-year lease to light an MJ Designs store, which closed three years ago. The 36,800-sf Jo-Ann's will open in June.

Hodge says the $10-million-plus makeover will add signature towers and stone accents along with a stucco finish on the brick exterior. Robert W. Kelly of Fort Worth designed the new look; Muckleroy & Falls, also from Fort Worth, is the general contractor.

With the loan closed, Hodge says construction will begin in 75 days, maybe sooner. The plan is to push hard and fast until September to get as much done as possible before the onset of the holiday shopping season. Ridgmar's makeover is scheduled for a midsummer 2006 completion.

Across Alta Mere Drive is part of Silverman's foothold, a land assembly that's locked down 5,250 feet of frontage with Interstate 30 visibility. Silverman's Westover Village proposal, which includes a hotel, is working hand-in-hand with a high-end townhouse development fronting the local golf course. Silverman owns or controls all key corners, creating a block for four retail projects. He's earmarked 45 acres for a project dubbed the Plaza; 12 acres for the Shops at Westover Village, envisioned as boutique space; and the 19-acre balance is banked, for now.

Though the region's flowing with national retailers, Silverman's is shooting to raise the bar. "We are going to take the upscale high road," he says, adding the leasing team's preliminary door-knocking has gotten a "terrific response."