November, 2010 - Summit Place : Summit Place , Benefits For The Investors Or Potential Buyers.
With respect to its competitive set, Summit Place offers the only Kohl's department store, a mid-price anchor that is an excellent fit for the Summit Place customer profile. Sears, JC Penney and Hudson's are all well represented in the market, with multiple locations in the competitive set. The Sears at Summit Place is reputed to be a top sales producer for the chain in metropolitan Detroit. The JC Penney and Hudson's both do well, with attractive finishes that are at least comparable to the chains' other locations in the market.
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Great Lakes Crossing is value/entertainment center, which was opened in 1998 by Taubman and The Mills Corporation. This property is the newest retail concept introduced in the market. Great Lakes Crossing is located approximately six miles north of Summit Place along Baldwin Road in Auburn Hills. The property offers a unique retail venue and combines value shopping, family entertainment, themed restaurants and creative food options. The 1.4 million square foot center features 1 1 anchor stores, a food court, megaplex theater, and 200 specialty retailers. Department store clearance centers include Off 5th (Saks Fifth Avenue Outlet), Last Call (Neiman Marcus Outlet) and a JC Penney Outlet store. Other category superstores include Bed Bath & Beyond, Oshman's SuperSports, Burlington Coat Factory,Marshalls, TJ Maxx, Finish Line and Bass Pro Outdoor World. Entertainment tenants include GameWorks, Jeepers!, and the 25-screen Star Theaters. Specialty restaurants include Rain forest Cafe, Wolfgang Puck Cafe, and a 1,000-seat food court. Highway access and visibility is excellent with two convenient exits off of I-75. In-line tenant occupancy is reported to be 90%
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Reportedly, the center's performance has fallen short of expectations with several large tenant closings to date and significantly less tourist traffic than projected. This is attributed to the nontraditional orientation of the center as well as a confusing layout that does not promote cross shopping. Overall, this center is a destination property. Although the property has a large draw, like most entertainment centers, it has little impact on the surrounding malls.
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Twelve Oaks Mall is located in Novi in close proximity to three major interstates, I-96, I-275 and I-696, approximately 18 miles southwest of Summit Place. In addition to its superior interstate access, the mall's location is convenient to the affluent neighborhoods to its north, an important competitive advantage. Twelve Oaks features a strong anchor line-up, including Hudson's, JC Penney , Sears and one of the market's only Lord & Taylor department stores. The 1.2 million square foot center also features a well-balanced tenant mix with a high level of national credit tenants. National credit tenants include Cache, Williams-Sonoma, Warner Bros. Studio Store, Bebe, Banana Republic, Disney, Sharper Image, Eddie Bauer, Ann Taylor, Liz Claiborne, and Brooks Brothers. These factors provide the most formidable traditional mall competition. In-line tenant occupancy is reported to be 95%.
The Somerset Collection is clearly the dominant high-end fashion shopping center in the Detroit area, anchored by Neiman Marcus, Saks Fifth Avenue, Nordstrom and Hudson's. It is located approximately 18 miles southeast from Summit Place, two miles west of I-75. As part of a strategy to capitalize on Detroit's upscale market, the center was completely refurbished in 1992. The center added Michigan's only Neiman Marcus and Nordstrom stores and an expanded Saks Fifth Avenue with a second level of upscale retail shops rounded out the upscale appeal of the mall. The 1.4 million square foot super regional mall is comprised of two separate centers connected by a climate-controlled skywalk. Somerset North with 920,000 square foot was opened in 1996. Despite the skywalk, the distance between the two malls makes its inconvenient to shop both centers. Somerset attracts Detroit's most affluent, fashion-forward customers and has won numerous architectural and recognition awards for its expansion and redevelopment.
The property is owned and managed by Forbes/Cohen Properties. In-line tenant occupancy is reported to be 97% with in-line stores sales estimated to be in excess of $500 per square foot.
Oakland Mall is located in Troy, approximately 18 miles to the southeast of Summit Place and approximately five miles from the Somerset Collection. This center offers an anchor and tenant line-up that is highly similar to Summit Place. Anchors include Hudson's, JC Penney, and Sears. The 1.4 million square foot mall has excellent access to both I-75 and I-696. Oakland Mall was built in 1968 and is well maintained but somewhat dated in appearance. The expansion wing anchored by JC Penney attaches awkwardly to the mall, limiting the shopper's line of sight. National retailers include The Bombay Company,Casual Corner, The Disney Store, Eddie Bauer, Express, GAP, Limited,Nine West, Ruby Tuesday and Victoria's Secret. In-line tenant occupancy is reported to be 97%
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