THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Monday, February 10, 1997 TAG: 9702080248
SECTION: BUSINESS WEEKLY PAGE: 10 EDITION: FINAL
TYPE: Cover Story
SOURCE: BY JANET DUNPHY, SPECIAL TO BUSINESS WEEKLY
LENGTH: 157 lines
The Bayside area of Virginia Beach is attracting million-dollar real estate investors, not just big chain retailers, but also mom-and-pop entrepreneurs who believe residents want the ease of shopping in their own community.
The developers and business people are focusing on the area south of the Chesapeake Bay between Little Creek Naval Amphibious Base and the Lesner Bridge. The section contains affluent neighborhoods, nice beaches and Bayville City Park, but no major shopping facility.
Although numerous strip retail centers are located throughout the area, few of them house nationally known retailers.
But not for long. Hannaford Bros. Inc., the Maine-based grocer that entered the local market more than a year ago with a superstore in the Pembroke area, is spending $6 million on its new Shore Drive location, a lakeside site formerly occupied by a seasonal produce stand.
Hannaford's 47,000-square-foot combination grocery-deli-pharmacy-bank will open this spring and employ some 150 people.
In addition, Rite Aid Corp. will soon begin construction on an 11,000-square-foot, $2 million ``neighborhood drugstore'' at Independence Boulevard and Pleasure House Road where the Robbins Corner Garden Center, a hot dog stand and barbershop have stood for as long as most residents can remember. It will employ 20 people.
Other vacant land is also being brought up, like the two acres recently acquired by the Eckert family, owners of Baylake Pines Private School on Shore Drive. The vacant property, formerly home to an open-air flea market, is next door to the school.
``I personally think land is a good investment,'' says Joan Eckert, explaining that it will either be used to expand the school or leased. The school occupies nine acres along Shore Drive.
Five acres sandwiched between Shore Drive and First Court Road adjacent to Bayville Farms Park are earmarked for an $8 million retirement home, to be called Baylake Assisted Living.
Construction should begin by midsummer, according to Steve Claytor, director of development for the project's owner, Retirement Unlimited Inc. About seven acres still remain vacant in the parcel.
A half-mile west, construction continues on the Hannaford Food and Drug Superstore.
``We think this is an underserved market. We also think this is an area that other chains have overlooked,'' says Susan Pierter, a Hannaford spokesperson. ``We see the potential for residential growth and the site has good access for customers.''
``The demographics are good there,'' said Larry Hecht, an agent with Harvey Lindsay Commercial Real Estate, referring to the community surrounding Bayside Shopping Center on Shore Drive at Pleasure House Road.
Lindsay manages the property. ``Shore Drive is a very heavily traveled road.''
Hecht admits he is concerned about the effect Hannaford will have on Bayshore Market, the center's anchor tenant, but he notes that the occupancy level there has been stable since the area was renovated seven years ago. ``All shopping centers have some turnover,'' Hecht adds.
The existing shopping centers in Virginia Beach's Bayside offer a myriad of services to consumers, including hair salons, travel offices, medical and dental practices, restaurants and insurance agencies.
Square footage rates range from $6 to $12, depending on the age and condition of the property. Several are owned and managed by husband and wife teams and partnerships who have renovated the properties themselves.
Sherry Dubay of Dubay Properties recently bought the Thoroughgood Commons and Church Point Commons shopping centers on Pleasure House Road from Jahn Summs, a local builder and developer. Dubay already owns 25 properties, two of which are restaurants in the Chesapeake Beach neighborhood.
``We're not a large leasing company,'' says Dubay, whose husband, attorney Hayden Dubay, is relocating his practice from Norfolk to Shore Drive. The couple plans to ``shop'' for tenants as space becomes available and hopes to find an optometrist or family practice physician to occupy a space in the future. They recently signed a lease with a children's clothing store; one space remains vacant.
``This is an established area and it's ready to move,'' says Dubay, who did extensive remodeling to each of the properties she already owns. ``We are really interested in keeping the synergy going in this community.''
Dubay, the mother of three, describes herself as a ``worker bee.'' She plans to improve the lighting at both centers, add more visible signage and give them more ambience with potted plants and shrubbery. More aggressive marketing is also in the works.
She says she likes the two shopping centers, a total of 50,000 square feet valued at $3.4 million, because they are a safe place to shop and offer the feeling of the old town square. ``Competing doesn't bother me,'' Dubay says. ``It keeps you on your toes.''
Nearby, Denise and Al Becker under the name Denise Becker and Associates also purchased property from Summs. North Independence Commons, on Independence Boulevard near the Pleasure House juncture, occupies under an acre and is 90 percent leased for the first time in 10 years. It has seven units and is valued as $270,000. Becker recently leased space to a coffee importer and a music store.
``For years, this has been a homey corner for the locals,'' says Becker, whose Heartland Tax Service occupies a space in the Commons. ``There have been a lot of positive changes in the area.''
Becker has upgraded the property since he closed on it in mid-October, reconfiguring office space that was previously split into cubicles. A car was is being built on the empty lot next door.
The new Rite Aid will be across the street from Becker and is scheduled for a June opening. It will offer a mini-food mart with fresh dairy products, a business center for faxing, copying and packaging and shipping and a drive-through pharmacy.
Some existing business owners are understandably apprehensive about the newcomers while other embrace the change. ``I think Rite Aid is going to help us,'' says Mike Chesson, who owns Robbins Corner Shoppes with a partner just north of the Rite Aid site. ``It's nice to see the area grow. It's going to be a thriving community.'' ILLUSTRATION: [Cover, Color photo]
LAWRENCE JACKSON
The Virginian-Pilot
Sherry Dubay of Dubay Properties, with her husband Hayden Properties
up property in Virginia Beach's Bayside area.
[Color Photos]
LAWRENCE JACKSON photos
The Virginian-Pilot
Sherry Dubay of Dubay Properties bought the Throughgood Commons and
Church Point Commons shopping centers on Pleasure House Road from
Jahn Summs, a local builder and developer. Dubay already owns 25
properties, two of which are restaurants in the Chesapeake Beach
neighborhood.
Patrons dine at the Gourmet Deli in the Church Point Commons
shopping center, which Dubay Properties has purchased. Sherry
Dubay and her husband Hayden plan to ``shop'' for tenants as space
becomes available and hopes to find an optometrist or family
practice physician to occupy a space in the future. They recently
signed a lease with a children's clothing store; one space remains
vacant.
Sherry Dubay says she likes the Church Point Commons and Throughgood
Commons shopping centers, a total of 50,000 square feet valued at
$3.4 million, because they are a safe place to shop and offer the
feeling of the old town square.
BAYSIDE BUYERS
The Bayside area of Virginia Beach, near Little Creek Naval
Amphibious Base, is attracting real estate investors, including:
Hannaford Bros. Inc., a Maine-based grocer, is building a $6
million Food and Drug Superstore on Shore Drive.
Rite Aid Corp., will soon begin construction on an
11,000-square-foot, $2 million ``neighborhood drugstore'' at
Independence Boulevard and Pleasure House Road.
The Eckert family, owners of Baylake Pines Private School on
Shore Drive, has bought two more acres next to the school.
Dubay Properties bought the Throughgood Commons and Church Point
Commons shopping centers on Pleasure House Road from Jahn Summs, a
local builder and developer.
Denise Becker and Associates
purchased North Independence Commons on Independence Boulevard
near the Pleasure House juncture from Summs.