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Indiana's retail developers.

"Awakening from the hangover of the 1980s"

"The shopping-center business is awakening from the hangover of the 1980s."

Tim Mehall sees light at the end of the tunnel. As vice president of retail leasing for Cressy & Everett in Mishawaka, he has witnessed the near stoppage of new construction of shopping centers and malls the past three years.

How dark has the tunnel been? In 1992, the number of new shopping centers increased nationally only 1.6 percent, compared with growth rates above 7 percent in the mid-'80s. Leasable space increased 1.7 percent last year, down from a peak of 6.8 percent in 1989, the last of the boom years.

"Due to the national economic downturn, the savings-and-loan fallout a few years ago, along with new federal regulations on real-estate loans, new development in the commercial real-estate industry has slowed considerably," notes Bill Schrage of The Skinner & Broadbent Co. of Indianapolis.

Certainly, Indiana developers haven't had to stop all their activities for lack of money. Development companies around the state have gotten some projects done over the last couple of years, despite tight money.

In perhaps the most dramatic example, Melvin Simon & Associates of Indianapolis last summer opened Mall of America, the largest mall in the country, just outside of Minneapolis. With 2.6 million square feet of leasable retail space and 4.2 million square feet of total space, it's nearly four times the size of Indiana's largest malls. Also, concrete is being poured at the site of Simon's Circle Centre Mall in downtown Indianapolis, following years of delays.

"One survey reported that more than 200 retailers will open or expand more than 32,000 new stores over the next four years," notes James Lohman, vice president of Murphy & Associates of Fort Wayne.

"There is every indication that retail space is again in demand," agrees Phil Knapke of Goldstine Knapke Corp. in Fort Wayne. "And there has been a strong, renewed interest in existing retail space, especially in established shopping centers."

A healthier retail environment is one reason lenders are again looking at shopping-center developments. The 1992 holiday shopping season tells the story--sales were up 8 percent over the 1991 holiday season, which pushed full-year 1992 sales above previous-year numbers by 4.6 percent.

Melvin Simon & Associates, owned by brothers Mel and Herb Simon, was incorporated in 1960 as a developer of strip shopping centers. Its first project was Bloomington's Southgate Plaza. Through the years, Simon developed centers across Indiana and throughout the nation, eventually earning the title of the nation's largest shopping-center developer. While it began by specializing in strip centers, the company became a pioneer and dominant player in the indoor shopping mall concept.

Simon properties in Indiana--which number more than 30--can be found from Fort Wayne to Merrillville to Bloomington, and practically everywhere in between. Its dozen or so projects in the Indianapolis area include one of the state's largest malls, the Greenwood Park Mall. Its malls in other Indiana cities also tend to be the largest shopping centers in their areas.

While Simon controls more retail square feet in Indiana than any other Hoosier developer, the Skinner & Broadbent name actually is on just as many Indiana retail properties. The Indianapolis real-estate development, management, leasing and construction company was founded in 1972 by George Broadbent and Robert Skinner, who had gotten to know one another while working at the W.A. Brennan Co.

Their first two projects were in Indianapolis and Noblesville. Together they built 21 centers with a total of 1.8 million square feet of space, and renovated additional space totaling nearly half a million square feet. Skinner retired in 1987, and in the years since then the company put up another 11 centers. Skinner & Broadbent currently owns and manages some 35 properties totaling 4.3 million square feet.

Skinner & Broadbent properties can be found in Indianapolis, Fort Wayne and Evansville, as well as in Kentucky, Michigan, Ohio and Tennessee. In Indiana, its largest center is The Village at Eagle Creek in Indianapolis with 197,000 square feet, followed closely by Eastland Place in Evansville. Its biggest project overall is in Memphis, where Hickory Ridge Commons totals 328,830 square feet.

Duke Associates of Indianapolis no doubt is known mostly as a developer of office and industrial space. Still, quite a bit of retail space carries the Duke logo, most notably The Fashion Mall at its Keystone at the Crossing development in Indianapolis. The mall encloses more than half a million square feet of upscale retail space, and is being expanded to make room for more retailers, including Parisian, a department store scheduled to open this summer. Duke also operates retail space in other parts of Indianapolis as well as in other Midwestern cities.

Wininger/Stolberg Group partners Tim Wininger, Tim Wininger Jr. and Eric Stolberg have done business together since the 1970s. Stolberg--known just as well in Bloomington as a starting wide receiver for the football Hoosiers on the Rose Bowl team of the late 1960s--was a part owner of Owens, Bryan & Reed Realty, the largest brokerage in town. The Winingers were involved in construction and development.

Known also for residential and office development, Wininger/Stolberg has current retail projects including a neighborhood shopping center on the north side of town called Kinser Crossing, and the second phase of Walnut Station on the south side.

Wininger/Stolberg has developed space in the city's hottest retail location, on the east side near Melvin Simon's College Mall, and it has developed several convenience centers around town.

Discussion of real estate in Bloomington would not be complete without mention of CFC Inc., a subsidiary of the Cook Group. While the company is known more for apartment and office development, its restoration of several historic buildings in downtown Bloomington--including Fountain Square, which encompasses the entire south side of the courthouse square--has put it into the retail development business.

Today, says CFC President Steve Ferguson, the company has 13 retail/mixed use properties in Bloomington.

In the Evansville area, a big name in retail and other types of development is Regency Associates. Founded by Alvin Eades in the late 1940s as Eades Properties, the company was renamed Regency in 1970 and became active in acquiring shopping centers.

"Regency's greatest growth since the real-estate market collapse has been in property management," says Regency's Jim McKinney. "Since 1990, we have doubled the amount of property management from owners outside of Regency."

The largest retail center Regency has developed, at 197,219 square feet, is Village Commons in Evansville, which is anchored by Wal-Mart and Buehler's stores. Wal-Mart, in fact, is a regular tenant at Regency properties, which are in cities including Aurora; Lebanon; Seymour; Henderson, Kentucky; and Fremont, Ohio. In all, Regency manages nearly 3 million square feet of retail space.

In Northwest Indiana, a major retail player got started in the bread business. Neville Gough developed a relationship with the Butternut Bread company and built some of its stores in Indiana and Michigan. Now, Gough, Lesch & Gough has a number of medium-size strip centers on its roster, including properties in Valparaiso, Merrillville and Crown Point. The company has developed and constructed nearly three quarters of a million square feet of retail space, and currently manages more than a million square feet.

Even before developing its Edison Lakes Corporate Park in Mishawaka, Cressy & Everett was making its mark on retail real estate in Northern Indiana. Most notably, the company joined forces with retail development giant Edward J. DeBartolo Corp. to develop the million-square-foot University Park Mall and the nearby University Center. Cressy & Everett also developed Erskine Plaza in South Bend and has done build-to-suit projects for retailers such as Autoworks and Osco Drug.

Murphy & Associates of Fort Wayne has been in the business of retail development since 1949, though its early years were spent on projects in native Ohio. In the 1960s, the company moved to Fort Wayne, where it now is the largest central-business-district landlord.

Among its largest retail properties is Market Center, a 350,000-square-foot shopping center in Elkhart anchored by Wal-Mart and Sam's Club. It also has developed retail properties in its hometown as well as in Illinois and Ohio, and it manages projects as far away as Virginia.

In the Muncie area, a big name in retail is ADM Real Estate. It was founded in the early 1980s to meet a demand for a commercial real-estate company in Eastern Indiana, according to Steve Maines, a part owner and director of commercial real estate. Among the founders, probably the best known is J. Roberts Dailey, the former speaker of the Indiana House of Representatives.

ADM now owns and manages several strip malls totalling about a half million square feet. Its projects include McGalliard Square, Mall Corner, Granville Square, Lyndenbrook Plaza, Lyndenbrook Center and Bethel Pike Plaza, all in Muncie.

In addition to Melvin Simon, Skinner & Broadbent and Duke, retail players in and around the capital city include Centre Properties, Greenwalt Development and Sandor Development.

Sandor Development has been in business for about three decades, and among other things worked with Mel Simon to bring Indiana's first Kmart to the Lafayette area. Its projects in Indianapolis include a couple on the north side, Cherry Tree and College Park, and it recently finished projects in Anderson, Richmond and Kokomo. Sandor owns or manages properties in Indiana, Ohio, Illinois, Michigan and Pennsylvania.

Centre Properties was founded nine years ago to develop, buy and renovate Indianapolis shopping centers. The company has seven properties in Indianapolis on the south, east and west sides. Its biggest developments include Southport Centre, a 275,000-square-foot center, and Centre East, which has about a half million square feet of space.

Greenwalt Development is the development side of Greenfield Builders. It was founded about five years ago, and has been developing build-to-suit projects for a number of retailers throughout the Midwest. Among other things, Greenwalt currently is developing a 110,000-square-foot strip center on the south side of Indianapolis, anchored by a Cub Foods store.
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Title Annotation:shopping center developers
Author:Miller, Chuck; Gilbert, Jo
Publication:Indiana Business Magazine
Article Type:Industry Overview
Date:Jun 1, 1993
Previous Article:Indiana's hidden treasures: some of the state's less-known attractions are worth discovering.
Next Article:Southwestern Indiana update.

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