A Texas developer plans to demolish much of the Shops at Worthington Place, in an effort to save the struggling mall property.
Under the plan, which is scheduled to come before the Worthington Planning Commission Thursday, the north and west sides of the mall will eventually be torn down – about 120,000 square feet of the 138,000-square-foot building.
The mall’s owner, the Dallas firm Direct Retail Partners, plans to initially demolish the north end of the mall, about 85,000 square feet, and replace it with a 125,000-square-foot office building, up to 10 stories high, including a parking garage.
In a second phase, the west side of the mall would be removed and replaced with another office building of similar size to the first, a 120-room hotel or a 100-unit residential building, a 30,000-square-foot office or retail building, and an outdoor plaza.
Traffic inside the 15.7-acre property would be significantly shifted, including adding a north-south road through what is now the middle of the mall.
The proposal comes less than a year after Direct Retail Partners acquired the mall, on the southwest corner of U.S. 23 and Interstate 270. Early this year, company officials said they planned to renovate the property.
In a letter proposing the renovation, the company described the changes as essential to saving the 46-year-old development.
While much of the mall appears occupied, Direct Retail Partners described the property as 45% “economically vacant” and said it is operating as a Class C or D property.
The mall’s 34 tenants include Talbots, Panera, Orvis, Kenneth’s Hair Salon, First Watch, Aladdin’s Eatery, Piada, Howard Brooks Interior and Lume Family Eyecare. One of the mall’s longest tenants, Urban Baggerie, recently closed.
Direct Retail Partners said the previous owners’ renovation opening the mall helped tenants on the east side of the property – most of them restaurants – but that the rest of the mall struggles from a tired design.
“Unfortunately, the performance of retailers on the western side of the mall and those with interior access only is dismal,” Direct Retail Partners wrote in a letter accompanying its proposal.
“The poor performance of these tenants is the result of an outdated design that limits visibility and creates a poorly defined vehicular and pedestrian flow throughout the property. Without significant design improvements, it is anticipated that the interior corridor of the mall will need to be closed to eliminate the financial drain on overall operations.”
The company noted, however, that the success of some tenants and the mall’s high-traffic location off two major arteries make it ripe for a turnaround.
“Indoor malls that are in superior locations and markets like The Shops have been successfully revitalized by converting them to mixed use “live, work, play” developments,” wrote Direct Retail Partners.
Even though office space is struggling now during the pandemic, Direct Retail Partners noted that Worthington has a shortage of new Class A office space. The company will find itself competing for office tenants with a new development rising immediately across the street on the site of a former Holiday Inn.
The city’s Planning Commission and Architectural Review Board is scheduled to hear Direct Retail Partners’ request to rezone the property from commercial shopping center to planned unit development. Worthington’s planning department has recommended tabling the request until more information can be gathered.