Back Bay moves to Natick
Grant: With completion targeted for September 2007, General Growth Properties will add more than 500,000 square feet of retail. Neiman-Marcus and Nordstrom will take up a combined 240,000 square feet. We will also build space for more than 80 high-end specialty stores, along the lines of a Tiffany and Louis Vuitton. We will also feature probably four quality, sit-down restaurants, such as a PF Chang’s, Cheesecake Factory, or Maggiano’s. These are just examples, since leases are not finalized. At about 1.7 million square feet, the new Natick Mall will be the largest in Massachusetts.
WBJ: What are some of the project’s distinguishing features?
Grant: The New York architectural firm of Beyer Blinder Belle has set out to design a very luxurious environment. The overriding architectural feature will be a large, rolling skylight extending down the spine of the mall. And there will be many upscale touches, such as marble floors on the first level and wood railings and wood floors on the second level. Neiman-Marcus designs its own stories, and the plan for Natick calls for gold, stainless steel panels, shaped like the folds of a skirt, which will wrap around the exterior. At the same time, we must ensure that the expansion melds with our existing space, so this month we are beginning a major interior renovation of our current complex.
WBJ: Can the region really support more retail space?
Grant: We wouldn’t have undertaken this expansion if Natick Mall wasn’t already one of our premier properties, generating around $300 million a year in sales. In terms of demographics, Metrowest is one of the most attractive areas in the country. Average household income tops $115,000, and 18,000 households have a net worth of more than $1 million. Our new upscale stores and restaurants should expand our prime trading area from a 30-minute radius to nearly 60 minutes..
WBJ: Why did you include condos in this project?
Grant: The idea of a live, work and play environment makes a lot of sense. In this area, there is a large population of affluent empty nesters who want to move from their large houses but still be close to families in the suburbs. This project gives them urban-like amenities, such as prime shopping and restaurants, within walking distance. The project will feature 215 units, ranging from 1 to 3 bedrooms and priced from $385,000 to $1.3 million. The architectural design by Cambridge’s ADD, Inc includes a 12-story tower, a 10-story tower, and a 9-story connecting structure. About 250 people have already put down reservation deposits.
WBJ: What’s the total investment for General Growth Properties?
Grant: More than $500 million in hard and soft costs. In addition, the costs to Nordstrom and Neiman-Marcus for their stories are probably about $100 million.
WBJ: How will the expansion impact the economy of Metrowest?
Grant: The mall now supports about 1,500 to 1,800 jobs, and the expansion will add another 800 or 900. During construction, about 1000 people from various disciplines will be employed, with Dimeo of Providence serving as prime contractor. Once all the new stores are open, annual sales could double to about $600 million by 2009 or 2010.
WBJ: What have been some of the project’s biggest challenges?
Grant: Development space is very tight, just 16 acres on the site of the old Wonder Bread bakery. The engineering challenges are tremendous, such as having to sink Natick Mall road by about 18 feet. We call it the Little Dig. We also will be creating two levels of underground parking beneath the new stores.
WBJ: How about the approval process with the town of Natick?
Grant: Overall, cooperation has been good. We are the largest taxpayer in town, and the expansion will add another $2 million annually in tax revenues. The governmental process here is exhaustive, and we are still working on approvals for parts of the project. I have worked all over the country, and certainly New England is the toughest when it comes to the time and costs involved in project review.
This interview was conducted and edited for length
by WBJ Chief Editor Larry Maloney
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