The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Tuesday, May 9, 1995                   TAG: 9505090284
SECTION: BUSINESS                 PAGE: D1   EDITION: FINAL 
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER 
DATELINE: NORFOLK                            LENGTH: Long  :  133 lines

MILITARY CIRCLE TO RECEIVE A FACE LIFT WITH A NEW UPSCALE MALL IN THE WORKS IN DOWNTOWN NORFOLK AND LYNNHAVEN MALL IN VIRGINIA BEACH GETTING A MAKEOVER, THE AGING SHOPPING CENTER ANNOUNCED SEVERAL STEPS IN AN EFFORT TO REMAIN COMPETITIVE.

Military Circle, the aging shopping center smack in the middle of South Hampton Roads, will get a multimillion-dollar makeover that includes everything from skylights to a 600-seat food court, officials said Monday.

The renovation, expected to cost more than $10 million, will be the largest investment in the shopping center since it was built in 1970, said Bob Oliver, executive vice president of Chicago-based Urban Retail Properties Co., which manages the mall. Construction will begin this summer and last a year.

Monday's announcement follows two major retail developments in this region: plans for upscale mall MacArthur Center in downtown Norfolk and for a multimillion-dollar renovation and new anchor for Lynnhaven Mall in Virginia Beach.

In Norfolk's Military Circle shopping center, customers may see several new tenants and perhaps a new anchor department store as management renegotiates leases and tries to attract new retailers, Oliver said. The mall has a small anchor spot available that once was occupied by department store Smith & Welton.

It's not clear whether some retailers would relocate or depart. For example, the Piccadilly Cafeteria is located where the food court is planned. And Oliver said his company was in discussions with the AMC Circle 6 Theatres inside the mall, but would not indicate whether the cinema would be asked to relocate.

When the construction crews finish, shoppers immediately will notice a clear path to the mall, marked by bigger and more attractive entrances and signs, said the project's architects, Cope Linder Associates of Philadelphia. The architects say customers now have difficulty finding the entrances to Military Circle because they aren'tclearly marked.

``We're going to start with the entrances, where the image starts,'' said Gerald Cope, co-owner of the architectural company.

Floor tiles will be ripped out and replaced with white-, sand- and khaki-colored ones in line with the mall's new nautical theme. In the food court, the floor will be brightly colored. Tall palms, new water fountains, landscaping and columns also will be added.

``It needs to sparkle,'' Cope said.

Several mall tenants, who were told of the plans Monday, said they were excited about the renovation.

``We will benefit from it,'' said LonVondee Bryant, assistant manager of DJ's Men's Clothing. ``The mall is so old now. When customers come to the mall, they want to have fun shopping. You come to this mall and it's dark and dreary, and you're not going to have fun.''

Built in 1970 by developer Harvey Lindsay Jr., the Norfolk mall once dominated the retail scene. It was built in the center of everything in South Hampton Roads, right off the interstates.

``In my mind, it's the finest retail location in Hampton Roads,'' Lindsay said.

But by the '90s, Lynnhaven Mall in Virginia Beach had closed the gap. Several factors are probably behind Military Circle's slip, but it's clear that the mall's owners did not invest in any overhauls. The Rouse Co., the center's previous owners, promised tenants a $20 million renovation when it bought the mall in 1986. But it never delivered. Rouse has since sold its remaining interest in the center.

The current owners are a bunch of pension funds managed by J.P. Morgan Investment Management Group Inc. Urban Retail Properties took over the mall's management from Rouse last year. ILLUSTRATION: Color Illustration

Artist's Rendering

[Military Circle face lift)

KEYWORDS: MILITARY CIRCLE SHOPPING MALL

NORFOLK - MILITARY CIRCLE, THE AGING SHOPPING CENTER SMACK IN THE

MIDDLE OF SOUTH HAMPTON ROADS, WILL GET A MULTIMILLION-DOLLAR

MAKEOVER THAT INCLUDES EVERYTHING FROM SKYLIGHTS TO A 600-SEAT FOOD

COURT, OFFICIALS SAID MONDAY.

THE RENOVATION, EXPECTED TO COST MORE THAN $10 MILLION, WILL BE

THE LARGEST INVESTMENT IN THE SHOPPING CENTER SINCE IT WAS BUILT IN

1970, SAID BOB OLIVER, EXECUTIVE VICE PRESIDENT OF CHICAGO-BASED

URBAN RETAIL PROPERTIES CO., WHICH MANAGES THE MALL. CONSTRUCTION

WILL BEGIN THIS SUMMER AND LAST A YEAR.

MONDAY'S ANNOUNCEMENT FOLLOWS TWO MAJOR RETAIL DEVELOPMENTS IN

THIS REGION: PLANS FOR UPSCALE MALL MACARTHUR CENTER IN DOWNTOWN

NORFOLK AND FOR A MULTIMILLION-DOLLAR RENOVATION AND NEW ANCHOR FOR

LYNNHAVEN MALL IN VIRGINIA BEACH.

IN NORFOLK'S MILITARY CIRCLE SHOPPING CENTER, CUSTOMERS MAY SEE

SEVERAL NEW TENANTS AND PERHAPS A NEW ANCHOR DEPARTMENT STORE AS

MANAGEMENT RENEGOTIATES LEASES AND TRIES TO ATTRACT NEW RETAILERS,

OLIVER SAID. THE MALL HAS A SMALL ANCHOR SPOT AVAILABLE THAT ONCE

WAS OCCUPIED BY DEPARTMENT STORE SMITH & WELTON.

IT'S NOT CLEAR WHETHER SOME RETAILERS WOULD RELOCATE OR DEPART.

FOR EXAMPLE, THE PICCADILLY CAFETERIA IS LOCATED WHERE THE FOOD

COURT IS PLANNED. AND OLIVER SAID HIS COMPANY WAS IN DISCUSSIONS

WITH THE AMC CIRCLE 6 THEATRES INSIDE THE MALL, BUT WOULD NOT

INDICATE WHETHER THE CINEMA WOULD BE ASKED TO RELOCATE.

WHEN THE CONSTRUCTION CREWS FINISH, SHOPPERS IMMEDIATELY WILL

NOTICE A CLEAR PATH TO THE MALL, MARKED BY BIGGER AND MORE

ATTRACTIVE ENTRANCES AND SIGNS, SAID THE PROJECT'S ARCHITECTS, COPE

LINDER ASSOCIATES OF PHILADELPHIA. THE ARCHITECTS SAY CUSTOMERS NOW

HAVE DIFFICULTY FINDING THE ENTRANCES TO MILITARY CIRCLE BECAUSE

THEY AREN'T CLEARLY MARKED.

``WE'RE GOING TO START WITH THE ENTRANCES, WHERE THE IMAGE

STARTS,'' SAID GERALD COPE, CO-OWNER OF THE ARCHITECTURAL COMPANY.

FLOOR TILES WILL BE RIPPED OUT AND REPLACED WITH WHITE-, SAND-

AND KHAKI-COLORED ONES IN LINE WITH THE MALL'S NEW NAUTICAL THEME.

IN THE FOOD COURT, THE FLOOR WILL BE BRIGHTLY COLORED. TALL PALMS,

NEW WATER FOUNTAINS, LANDSCAPING AND COLUMNS ALSO WILL BE ADDED.

``IT NEEDS TO SPARKLE,'' COPE SAID.

SEVERAL MALL TENANTS, WHO WERE TOLD OF THE PLANS MONDAY MORNING,

SAID THEY WERE EXCITED ABOUT THE RENOVATION.

``WE WILL BENEFIT FROM IT,'' SAID LONVONDEE BRYANT, ASSISTANT

MANAGER OF DJ'S MEN'S CLOTHING. ``THE MALL IS SO OLD NOW. WHEN

CUSTOMERS COME TO THE MALL, THEY WANT TO HAVE FUN SHOPPING. YOU COME

TO THIS MALL AND IT'S DARK AND DREARY, AND YOU'RE NOT GOING TO HAVE

FUN.''

BUILT IN 1970 BY DEVELOPER HARVEY LINDSAY JR., THE NORFOLK MALL

ONCE DOMINATED THE RETAIL SCENE. IT WAS BUILT IN THE CENTER OF

EVERYTHING IN SOUTH HAMPTON ROADS, RIGHT OFF THE INTERSTATES.

``IN MY MIND, IT'S THE FINEST RETAIL LOCATION IN HAMPTON ROADS,''

LINDSAY SAID.

BUT BY THE '90S, LYNNHAVEN MALL IN VIRGINIA BEACH HAD CLOSED THE

GAP. SEVERAL FACTORS ARE PROBABLY BEHIND MILITARY CIRCLE'S SLIP, BUT

IT'S CLEAR THAT THE MALL'S OWNERS DID NOT INVEST IN ANY OVERHAULS.

THE ROUSE CO., THE CENTER'S PREVIOUS OWNERS, PROMISED TENANTS A $20

MILLION RENOVATION WHEN IT BOUGHT THE MALL IN 1986. BUT IT NEVER

DELIVERED. ROUSE HAS SINCE SOLD ITS REMAINING INTEREST IN THE

CENTER.

THE CURRENT OWNERS ARE A BUNCH OF PENSION FUNDS MANAGED BY J.P.

MORGAN INVESTMENT MANAGEMENT GROUP INC. URBAN RETAIL PROPERTIES TOOK

OVER THE MALL'S MANAGEMENT FROM ROUSE LAST YEAR. by CNB