Halpern Enterprises expands build to suit portfolio with two new Starbucks stores

Stores opening in Conyers, Ga. and at North Griffin Square shopping center in Griffin, Ga.

Two new Starbucks stores are coming to Griffin and Conyers, Ga. | Photo credit: Starbucks Corp.

Halpern to build 2 new Starbucks stores in Georgia | Photo credit: Starbucks Corp.

ATLANTA  (Jan. 25, 2017) – Halpern Enterprises is excited to announce two new freestanding Starbucks stores under development by its build to suit division led by vice president Marc Kirchhoff, CCIM.

The Starbucks at North Griffin Square shopping center is scheduled to open this summer and will be the only freestanding location in Griffin, Ga. Starbucks representative Dexter Patterson said, “We are excited to bring the Starbucks brand to the community of Griffin.”

The project initially faced several challenges. Starbucks’s site design requirements necessitated the existing parcel at the center to be subdivided, which meant a number of variances needed to be secured to accommodate their needs.

The site, which is extremely narrow, required Halpern to fit the store inside an existing parking lot with drive aisles on three sides that could not be moved. Under Kirchhoff’s leadership, the site was successfully designed to fit within the constraints. The project also required relocating a Bank of America ATM that was in the site’s path.

Rendering of the freestanding Starbucks location in Griffin

Rendering of the freestanding Starbucks location in Griffin, Ga.

“Starbucks is one of the world’s largest retailers in terms of their number of stores, and they have unique requirements that contribute to their success” said Kirchhoff, “We used our skill set to overcome some very challenging site and permitting requirements to deliver exactly what Starbucks desired. There is satisfaction when your team is successfully able to resolve issues and get stores built for your client.”

The second location on Salem Rd. in Conyers, Ga., saw significant challenges as well, as the municipality had placed a moratorium on sanitary sewer discharge. “Some communities reach limits where they need to reevaluate their infrastructure and capacities,” according to Kirchhoff, “but after several months we were successful in obtaining the authorization required to make the Starbucks store a reality.”

Another challenge in Conyers was the inability to secure a curb cut on Salem Road, the main thoroughfare. Halpern’s team created a shared access drive with a neighboring restaurant to create proper circulation and easy ingress and egress for customers, including the required stacking for cars in the Starbucks drive thru lane.

As for future projects, Kirchhoff said Halpern seeks restaurants and retailers who want to expand their brands through expert site selection, development, and construction services designed to meet their specific goals.

“We’re helping Starbucks expand their footprint one store at a time,” said Kirchhoff. “We go into markets, find the right site, and go through the permit and entitlement process so we can build stores for our clients.”

The 2,200 SF Starbucks in Conyers is scheduled to open in spring 2018 at the intersection of Salem Road at Ellington Road.

Media Inquiries
Kendall Ridley
770-508-3312 (O)
kridley@halpernent.com

About Halpern Enterprises

Headquartered in northeast Atlanta, Halpern Enterprises owns 35 retail properties located in Georgia, Florida, South Carolina and Tennessee. With leasing, management and maintenance staff assigned to each shopping center, Halpern’s tenants receive personal attention and high value for their rental dollar. Halpern is continually growing its portfolio, both through acquisitions and new development, and all Halpern properties are well located in high-traffic areas convenient to major residential developments. More information is available at www.halpernent.com.

 

As retail development stays hot, here’s what to keep in mind

by Mark Kirchhoff, CCIM

Marc-Kirchhoff-web

Marc Kirchhoff, CCIM, Vice President, Build to Suit Division

As we start this new year, the pace of retail development in the marketplace shows no signs of slowing down.

Gone are the days of speculative construction in geographic areas where growth is expected to take place. Instead, we’ve seen good sites and existing space in core markets utilized and absorbed, as retailers and restaurants steadily catch up to consumer demand.

Demand is so high that the RBC Capital Market Report recently estimated that around the country, retailers plan to open almost 80,000 new stores over the next two years — a staggering number. Restaurants are leading the charge in new development.

The focus on development continues to be on sites in dominant retail corridors, and since many users have essentially the same site criteria, it creates price pressure and a shortage of available sites. This means developers must become more creative in site selections.

1. How is the focus on high-quality locations impacting the real estate development process?

High-demand locations continue to dominate. Consequently, available sites in these areas tend to get a high level of interest from buyers. In many cases, retailers and restaurants relocate from under-performing locations, which means more retailers are looking to move to the same prime spots.

These conditions are why it’s important to identify a range of sites that fit the criteria for the retailer you are working for. This is a strategy Halpern uses to locate sites and create value from the start of the development process for the clients we serve.

2. What can industry professionals do to manage rising costs?

As development and construction costs continue to rise, returns get squeezed. At the same time, sites often contain challenges to be overcome — which is why it’s critical to have quality architectural and engineering partners on your team who can help value-engineer a project from the start.

Ultimately, the retailer or restaurant makes a decision based on its own economic model. Those models vary across the board, so it’s important to have quality partners from the start to maximize a project’s potential value.

3. What are the sweet spots in the marketplace right now?

Outparcels and parking lots where you can build represent some of the best options for creating successful projects in prime locations. “Carve-outs” are situated within the parking lot of a retailer, and though they are more complex projects to complete, they can yield good results for the developer and retailer.

4. What are some smart strategies developers should use in the year ahead?

If a site holds more potential for a different type of retailer than with the current retailer, it could make economic sense to buy the site with an existing tenant and relocate the tenant, or buy out the lease and repurpose the property for a better user.

In one example from my experience, an owner replaced a large casual dining chain’s location in Columbia, Missouri, with a new Chick-fil-A, which required scrapping the existing building and having the new location built from scratch. The payoff: The Chick-fil-A that replaced it has significant drawing power for the center and creates new traffic that would not be there otherwise.

Doing this is more complicated from a legal and planning perspective, but it’s worth considering as it can create substantially more value for both the retailer and developer.

Chick-fil-A location in Columbus, MO

“This was a challenging site and Marc Kirchhoff’s assistance to navigate the approval complexities proved instrumental in getting this deal across the finish line and our new store open in Columbia, Mo.” – Lynmarie Eade, Manager, Real Estate, Chick-fil-A, Inc.

Marc Kirchhoff, CCIM, is a Vice President at Halpern Enterprises, leading the company’s build-to-suit retail development division which finds and develops sites for national tenants.

This piece was originally published in Shopping Center Business.

 

National-level retail real estate professional joins Halpern Enterprises to grow build-to-suit development division

National-level retail real estate professional joins Halpern Enterprises to grow build-to-suit development division

Marc Kirchhoff has worked with national retailers in over 30 states

ATLANTA, Ga. (Mar. 9, 2015) – Marc Kirchhoff, CCIM, a leading retail development expert, has joined Halpern Enterprises as Vice President.

Kirchhoff will spearhead Halpern’s build-to-suit retail development program, finding and developing locations for national tenants in the Southeast. He brings extensive retail real estate expertise to the company, having worked on projects in over 30 states on behalf of more than 50 national chains.

During his 19 years at Maly Commercial Realty in Columbia, Missouri, Kirchhoff was responsible for site selection, retail development and project management.  In particular, he started the Lowe’s Peripheral Land Program and was the National Broker for 10 years, assisting retailers and restaurants in creating the right fit for developments in 34 states.

At Halpern, Kirchhoff and the development team will be responsible for taking projects from start to finish – from site acquisition to leasing to construction – for national retailers. The company has been expanding its development capabilities for several years, and Kirchhoff will lead the build-to-suit effort.

“We see a major opportunity for growth in retail development for Halpern, and Marc’s experience is perfect for leading these efforts,” said Bill Brown, President of Halpern Enterprises. “Every project is different in terms of matching needs with locations, and that’s why Marc’s extensive experience in working with major retailers is so important.”

Kirchhoff graduated from the University of Missouri with a B.S. in real estate and finance. He is a CCIM, a member of ICSC and the Developers Forum.

About Halpern Enterprises

Headquartered in northeast Atlanta, Halpern Enterprises owns 35 retail properties located in Georgia, Florida, South Carolina and Tennessee. With leasing, management and maintenance staff assigned to each shopping center, Halpern’s tenants receive personal attention and high value for their rental dollar. Halpern is continually growing its portfolio, both through acquisitions and new development, and all Halpern properties are well located in high traffic areas convenient to major residential developments. More information is available at www.halpernent.com.