There has been an increase of redevelopment projects that aim to convert outlet mall centers into mixed-use spaces, especially within the South. This is mainly due to the recent massive population increases that have occurred over the past few years in these growing Southern communities. Outlet malls are generally situated in the far outlying regions of major metros that have traditionally been considered population deserts. However, the huge influx of new residents into Southern markets has resulted in a rising demand within these outskirt areas not just for housing, but also entertainment, retail and other types of services. Young millennial families are especially being targeted for these mixed-use outlet mall redevelopment projects that will ultimately provide a convenient walkable community. Two such projects garnering attention are the redevelopments of the St. Augustine Outlets in St. Augustine, Fla., and the Lebanon Outlet Marketplace in Lebanon, Tenn.
St. Augustine Outlets Redevelopment
The 31-acre St. Augustine Outlets — owned since 2006 by LVP St. Augustine Outlets LLC, an entity of developer Lightstone — received approval two years ago to be redeveloped into a mixed-use space.
The redevelopment, to be called St. Augustine Centre, will include approximately five retail outparcels, between 1.4 and 4.5 acres each. Texas Roadhouse is the first tenant announced and the steak restaurant expects to open a 7,831-s.f. location on a 2.06-acre outparcel by early 2025. Other types of tenants rumored to be courted for the additional parcels include restaurants, a movie theater that can house up to 10 screens and possibly a hotel with up to 400 rooms.
Additionally, up to 350 multifamily units on 14 acres are also in the pipeline, with a proposal for development by Flournoy Partners LLC that would consist of six separate four-story buildings and six corresponding garage buildings. An additional 200,000 s.f. of space may also be used for light industrial warehouse/distribution purposes. Plus, the overall site plan is factoring up to 100,000 s.f. for medical tenancy on a lot that was purchased by Baptist Health Properties in 2021. Construction already broke ground in April for a 23,879-s.f. freestanding building that will be occupied by the Baptist & Wolfson St. Augustine Emergency Room & Imaging Center. Expected to open sometime in 2024, the center will house both the Baptist Emergency for Adults and the Wolfson Children’s Emergency Center, for patients 17 and younger. The facility will also offer an outpatient imaging center for services such as X-rays, bone density screenings, ultrasounds and mammograms.
The former outlet mall site, situated about eight miles away from this historic downtown district of St. Augustine, is along a section of Interstate 95 that is expecting a 23% population growth by 2025 within a five-mile radius, as compared to 2020. On the opposite side of the highway from the site is a still-operating outlet center called the St. Augustine Prime Outlets, with tenants such as Nike, Adidas and Ann Taylor.
The immediate area, located about 45 miles from Jacksonville, Fla., is also witnessing other mixed-use developments, such as the 190-acre Elevation Pointe retail/office/residential project whose first tenant, Publix, will open by the summer of 2024.
Lebanon Outlet Marketplace Redevelopment
The 47.3-acre site that housed the Lebanon Outlet Marketplace received approval last November from the Lebanon Planning Commission to become a high-end mixed-use development that will ultimately feature retail, office and multifamily housing. The project is being undertaken by Regent Homes in conjunction with Lebanon Ventures LLC, an affiliate of Land Solutions Company, which acquired the outlet marketplace in May of 2022. With six phases in the plan, the project is expected to be completed by 2027.
The first phase should be done by late 2024 and will include a three-story mixed-use building that will have 7,200 s.f. of ground-floor retail, anticipated to be restaurants. The first phase will also feature up to 88 residential townhome units on 10 acres of land. High-end eateries, boutiques and convenience service stores are being targeted as tenants for the future phases.
There is one tenant from the original Lebanon Outlet Marketplace lineup that shall remain, albeit in a new space. As of September, Hope Baptist Church is now occupying a 15,000-s.f. space by taking over the former Gap Factory store and its two adjoining units. The church purchased the space from Lebanon Ventures LLC. A 30,000-s.f. portion of the same building has also been sold by Lebanon Ventures to the nonprofit Habitat for Humanity for its ReStore shop, which sells both new and used home improvement products and furniture. ReStore will open by late 2023.
This outlet mall site is situated about two miles south of the downtown section of Lebanon and is located just off of Interstate 40, a major thoroughfare that connects to Nashville, which is about 32 miles away. Lebanon has been experiencing a population growth of 5.95% annually since 2020, and the town continues to announce new manufacturing and distribution facilities opening in its vicinity, including centers for REI, New Balance and Walmart.
