Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DETROIT-The $140-million Fountain Walk mall, mostly an outdoor development, is about ready to open all its doors after owner and partner changes. The 737,000-sf development is located along 12 Mile Road, near Novi Road and I-96.

Seven stores are now open, including a 152,0000-sf Great Indoors and an 83,000-sf Galyan’s Trading Co.

However, almost 20 stores have yet to open, following problems with ownership and road construction that is months behind schedule.

“The development is pretty much done,” says Michael Lutton, president and chief executive officer of PLC Commercial Inc. of Newport Beach, CA. “We’re now finishing out a bunch of sites.”

He tells GlobeSt.com everything should be open by the holidays.

“We have about 75% leased out, a little more than 500,000 sf total,” Lutton reports.

The development has had a few tenants change plans during the last few years in the planning and construction process, Lutton notes. A Star Theater was set to open, along with a restaurant/video game. However, the owners of Star sold to Loews Cineplex Entertainment of New York.

“Support for the Star died, and the Jillian’s Entertainment just couldn’t move along,” Lutton says.

Now, the development will feature an 18-screen theater complex, owned by Emagine Entertainment Inc. of Troy, Lutton says.

Fountain Walk also lost the leasing guidance of Taubman Centers Inc. of Bloomfield Hills. Lutton says the divorce was the result of differences in style of this development and Taubman’s mega-mall style.

“We just felt, and they felt too, that they are better qualified to do inside malls. This isn’t an inside mall,” Lutton says.

Instead, the development is a “lifestyle center,” where the large retailers are situated in a campus-like setting, all with outside entrances.

The developer is teamed, in a way, with Ramco-Gershenson Properties Trust of Southfield on the project. However, the real estate investment trust only has a 10% stake.

“We have a minority investor,” Lutton says. “We’re also managing the development ourselves.”

His company builds multifamily housing and shopping centers, including the Marq*E in Houston.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.