THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, September 18, 1996 TAG: 9609180497
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
DATELINE: NORFOLK LENGTH: 59 lines
For years, Military Circle Mall merchants have watched in dismay as the shopping center aged ungracefully, crowds of customers thinned out and the quality of retailers declined.
But on Tuesday, the mall's management unveiled the results of its mission to win back what it has lost.
The mall's owners spent $12 million revamping everything from the entrances to the floors. Shoppers can now dine at a 600-seat food court, illuminated by new skylights and accented with palm trees. They'll also find new tenants, like Victoria's Secret and Elite Child.
And more are to come.
``Welcome to the new Military Circle,'' said general manager Rick Polley, beaming as he showed off his sparkling shopping center to a crowd of city officials, merchants and others.
As part of the overhaul, the movie theaters inside the mall were removed. Added to the mall were water fountains, bright signs and nautical blue benches.
The $12 million face-lift doesn't include other merchants' renovations. For example, the Doubletree Club Hotel, located inside the center, spent $3 million in makeovers. Other merchants, like Hecht's, repainted their store fronts.
Built in the heart of South Hampton Roads, Military Circle opened in 1970 and dominated the region's retail market.
``It really is the finest of retail locations,'' said Harvey Lindsay Jr., who developed the mall. ``Together with Janaf (Shopping Center), the area has an enormous concentration of retailers.''
Despite the mall's central location on Military Highway just off Interstate 264, Military Circle began to lose shoppers to new malls opening across Hampton Roads.
By the '90s, Lynnhaven Mall in Virginia Beach had closed the gap to become the region's leading indoor shopping center.
What happened to Military Circle?
There's probably more than one reason why the mall lost customers, and then valuable tenants like The Gap. But it's clear to retailers that the mall's owners didn't invest in renovations.
``It was getting run down,'' said Sylvia Johnson, manager of Mitchell's Formal Wear. ``I think the new owners finally realized that we needed to do something to be competitive with the other malls.''
It took a decade, however, before major improvements were made. In 1986, mall merchants were promised a massive renovation by The Rouse Co., the center's previous owner. It instead delivered a scaled-down version.
The new owners, a group of pension funds managed by J.P. Morgan Investment Management Group Inc., and management company Urban Retail Properties announced bigger plans last year. J.P. Morgan of New York bought the mall from Rouse in 1994.
``It's wonderful,'' Johnson said. ``It's such a change from the way the mall used to be.'' ILLUSTRATION: Color photo by LAWRENCE JACKSON, The Virginian-Pilot by CNB