The Loop Retail Project to Break Ground in June
John Jordan | April 1, 2015
GOSHEN—The developer of The Loop Hudson Valley retail project in the Town of Newburgh told members of the Commercial Investment Division of the Hudson Gateway Association of Realtors that a groundbreaking for the massive project is scheduled in early June.
Tom Wilder, a principal of The Wilder Companies of Boston, was the keynote speaker at the CID meeting on March 26th at the Harness Racing Museum and Hall of Fame in Goshen. Approximately 50 real estate professionals attended the session where Wilder provided an update on the project, formerly known as the Marketplace.
Wilder said that the total investment, including tenant build-outs would exceed $250 million. Some site clearing work has begun in preparation for the June groundbreaking, he said. He expects some of the retailers at The Loop Hudson Valley accounting for 300,000 square feet to 400,000 square feet of the total project to open in the fourth quarter of 2016, with the remainder opening their doors for the first time by the spring of 2017.
The Loop-Hudson Valley, formerly known as The Marketplace at Newburgh, has secured all its approvals for the 650,000-square-foot retail development to be built on a 120-acre parcel in the Town of Newburgh. The retail project drew some criticism years ago and even a lawsuit by the Newburgh Mall that was intent on blocking the project from starting construction. The real estate recession wound up delaying the project and in the interim, original developer Wilder-Balter Partners of Elmsford, NY took on partner The Wilder Companies of Boston, MA (no previous relationship).
The Loop Hudson Valley will include more than 50 stores, both national and local, restaurants, and entertainment venues, including a multi-screen movie theatre.
Wilder began his presentation by noting that the retail industry has been changing dramatically over the past 10 years towards mixed-use open-air shopping centers and away from large enclosed mega-malls. He said, “The Loop concept is really about mixing what we call power and lifestyle. We think it is a reflection of how people shop today—they cross-shop between a Dick’s Sporting Goods and The Loft. They want to have a dining experience and a theater experience…”
He said The Loop seeks to provide consumers with a multitude of reasons to visit the property and stresses connectivity as well as vehicle and pedestrian traffic flow.
Wilder said that in today’s retail market, “fortress malls” of 1 million square feet or more are surviving, as are big box developments and mixed-use retail properties that feature other uses such as entertainment. Many smaller sized enclosed malls, similar to the Newburgh Mall, are being repurposed. However, he believes that while the Loop Hudson Valley will attract premier retailers, the new development will generate other tenant interest at the adjoining Newburgh Mall.
Wilder said that 90% of the 650,000 square feet of space at the Loop Hudson Valley is under some form of commitment.
Last December, Wilder at a press conference announced that Field & Stream, Dick’s Sporting Goods, BJ’s Wholesale Club, Michaels and ShopRite had signed lease deals at the development. Particulars on the deal are: Dick’s Sporting Goods, 50,000 square feet; Field & Stream, 50,000 square feet; BJ’s Wholesale Club, 88,000 square feet; Shop Rite, 65,000 square feet; and Michael’s, 22,000 square feet. All of the retailers with the exception of the Michael’s store will be new locations. Michael’s will relocate from leased space nearby in the Town of Newburgh.
At the March 26th CID session in Goshen, Wilder related that there would be between 120,000 square feet to 140,000 square feet of smaller retail space. He added that the complex on a 120-acre parcel at the junction of I-84 and Route 300 would feature five sit-down restaurants, five casual restaurants as well as outdoor cafes. Wilder said that his firm will be announcing another 10 new tenants in the next 30 to 45 days.
He said the Wilder Companies decided to become a partner in the project when its research revealed that there was a retail void in the greater Newburgh marketplace. “The market research came back and said that there are more than 220,000 people in our area that are not being serviced properly,” he said. The project’s strategic location was another key factor in its investment in the development, Wilder added. “Three of the (highway) ramps lead to our front door.”
The Loop Hudson Valley will the fourth Loop property for Wilder. The other properties are in Massachusetts, Orlando and Kissimmee, FL.