$155M Expansion Set for the Walk

ATLANTIC CITY-The Cordish Co.'s Atlantic City Outlets-the Walk has been an "overwhelming success," in the words of company vice president Gary Block, to the extent that it merits a major expansion. The Baltimore-based Cordish is set to start work on that expansion, which will add 350,000 sf of mixed-use space to the existing 320,000-sf retail outlet center."We have just begun to scratch the surface in terms of the market's potential," says Block, who notes that this city's annual visitor count is in the 37-million range. "The first phase of the Walk has exceeded our expectations on every level. Both visitation and tenant sales are off the charts."The project's largely retail first phase opened just this past summer with a tenant roster dotted with such names as Polo, Tommy Hilfiger, Coach, Banana Republic, Liz Claiborne, H&M and Kenneth Cole. The second phase will bring in more retail and restaurants, as well as entertainment and office and residential components, according to Block. Specifics of the office and residential space have not been released.The phase two expansion will cost $155 million, according to Block. When completed late next year, it will bring Cordish's total investment in the site to the $300-million mark.The existing center encompasses seven city blocks straddling the Atlantic City Expressway, and Phase II will incorporate another five city blocks into a project that's being credited with giving this resort city's struggling Downtown new life. While much of this city's redevelopment has focused on the boardwalk and marina areas, Downtown has until now been left out of the mix."Downtown has finally seen a tremendous resurgence within the past year," Block says. "This is just the beginning.""The Walk has been an incredibly successful attraction, as well as an economic development tool for this city," says Curtis J. Bashaw, executive director of the Casino Reinvestment Development Authority. His agency oversees the use of funds derived from casino profits for a variety of redevelopment projects here and elsewhere in South Jersey."It has created jobs and has improved the streetscape," Bashaw says. "It has also helped the Downtown feel safer and helped generate a buzz about Atlantic City."The Walk encompasses a portion of this city's Downtown that was largely vacant for nearly a decade. Several national retail developers had tried to redevelop the property before the Cordish Co. became involved.