BURKE, VA—Kings Park Shopping Center, a Regency Centers property, will undergo an expansion and renovation, in part at the behest of its grocery-anchor, Giant Shopping Center.
When the retailer told Regency it wanted to expand its existing 28,161-square foot store to 52,000 square feet, the REIT saw it as an opportunity to improve the fully-leased center overall, according to Alan Roth, SVP and Senior Market Officer for Regency Centers. Giant will close its store June 19th and build the expanded store. Other improvements that will be made will include a re-surfaced parking lot and updated façade.
The building project is expected to deliver in Spring 2015.
In general, Regency Centers has been aggressive in building out and repositioning properties in its portfolio, with no detail too small to ignore. At the REIT's recent earnings call, COO Brian Smith talked about bringing Mendocino Farms, Los Angeles-based a gourmet sandwich and salad restaurant featuring Farm to Table seasonal dishes to its center in Westlake Village, Calif. He also discussed terminating an existing lease in the Atlanta center to make way for a new restaurant chain in the Northeast called Bartaco—a strategy that DDR Corp. is also using to reposition its portfolio.
The strategy is paying off, CEO Hap Stein said during the May earnings call.
"Our success has allowed us to increase development start guidance for 2014" by $40 million, he said. " It is also worth noting that we have nearly $90 million of redevelopments in process and the potential to commence more than $50 million next year."
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