THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Friday, November 4, 1994 TAG: 9411040691
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: By MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Medium: 65 lines
Hampton Roads' biggest shopping center will be renovated and expanded as early as next year - and perhaps not a moment too soon.
With the prospect of Norfolk gaining its own shopping center - a $270 million upscale project called MacArthur Center - some in the retail community feel Lynnhaven Mall is taking steps to be more competitive.
However, Lynnhaven Mall's manager says plans to spruce up the Virginia Beach shopping center and add upscale stores has nothing to do with the specter of Norfolk's grand mall.
``We've done market research that says our shopper wouldn't go to downtown Norfolk,'' said mall manager Sarah Goodrich. ``So, no, MacArthur Center is really not an issue.''
Owned by a subsidiary of the New York State Teachers Retirement Fund, Lynnhaven Mall has started searching for an upscale department store to add as another anchor. It also will begin a renovation program in spring 1995 that will update or change existing floors, ceilings, lighting and signs, Goodrich said.
An exact figure for the renovation and expansion was not disclosed but it will range in the millions, she said.
Lynnhaven also plans to include an entertainment center - possibly meaning an expansion of its movie theaters - a video arcade and a children's playroom to enhance its appeal as a family entertainment destination.
``Clearly, that will be a competitor for MacArthur Center,'' said Gerald Divaris, a Virginia Beach real estate broker who runs Divaris Real Estate.
MacArthur Center, Norfolk's proposed downtown mall, is not scheduled to open until 1996, but it will have a formidable presence because its tenant mix includes Macy's and Nordstrom stores as anchors.
Goodrich denied that the advent of MacArthur Center prompted the decision for the Virginia Beach mall's expansion. A recent market study indicated that consumers in Lynnhaven's area shop outside Hampton Roads because it lacks upscale merchandise, she said. Also, discussion of Lynnhaven's expansion has been ongoing for two years to three years.
``The mall is now 14 years old,'' Goodrich said. ``It's the normal time to be doing upgrades to the property.''
The last improvements to the mall occurred in 1991 with the mall's center court. The proposed changes will help the retail center ``to maintain market share and keep us current into the next decade,'' Goodrich said.
Lynnhaven already has sought to upgrade its tenant mix. An Eddie Bauer store, an outdoor clothing retailer, will open next year, Goodrich said. Discussions are under way with Ann Taylor, Gap Kids and Abercrombie & Fitch, all of whom have expressed an interest in joining Lynnhaven, she said.
The Disney Store, Gymboree and World of Science have opened in Lynnhaven recently. Two other tenants, Lechter's and Bombay Company, expanded their stores.
``We feel that the expansion of our existing merchandise mix is in keeping with our market and will allow Lynnhaven to remain a dominant force in the Tidewater area's retail scene,'' said Charles Grossmanof Jones Lang Wootton, the mall's financial advisor. ILLUSTRATION: Map
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