The retail battleground in North Phoenix has shifted.
The affluent area is highly coveted by developers. The Macerich Westcor division's Palisene project and DMB Associates' One Scottsdale, as well as Related Urban Development and the Thomas J. Klutznick Co.'s City North, have competed for retail tenants.
With City North securing commitments from Nordstrom, Bloomingdale's and Macy's West, Macerich and DMB have decided they will have a better chance of realizing their goals by joining forces.
"We didn't want to contribute to the fragmentation of luxury up there," said Bob Williams, senior vice president of development leasing at Macerich. "The competitive landscape with the projects within 5 miles of each other wasn't going to be supportable. We asked ourselves, how do we take a leadership role and resolve this? We're a perfect match" for DMB.
Macerich Partnership LP, the operating partnership of Macerich, and DMB Associates said they have complimentary strengths and skills. DMB leads on the luxury residential, office and hospitality fronts, while Macerich has deep experience with retail development, leasing and operations.
The first venture in the Macerich-DMB alliance will be One Scottsdale, a 120-acre project on the northeastern tip of the Scottsdale Road corridor. The venture will focus on the retail core of the project, which makes up 55 of the 120 acres, with the rest for homes, hotels and offices. The project has approval for as much as 1.8 million square feet of commercial space, which "will allow for a significant amount of luxury retail opportunities," Williams said.
Robert Mayhew, vice president of DMB Commercial, said, "City North has done a good job of procuring department stores. We haven't been pursuing mass retail. We're looking at a narrow segment. We haven't tried to be the million- or 2 million-square-foot mall. We've been focused on luxury retail with 25 percent of our gross leasable space coming from restaurants. There's been a proliferation of retail in the market, and that's why we've concentrated on luxury."
Scott Nelson, vice president of development at Macerich, said Palisene's retail lineup will compliment One Scottsdale. "There's an opportunity for both [projects] to be successful," he added. "We might go after global names at One Scottsdale and local retailers at Palisene. The goal is for [those projects] to become the luxury address for North Scottsdale Road."Macerich, which owns Scottsdale Fashion Square and Biltmore Fashion Park in Phoenix, believes it has a pool of luxury tenants eager to expand in the market.
"We're bringing Michael Kors, Jimmy Choo and Carolina Herrera to Arizona," Williams said.
The plans for One Scottsdale and Palisene remain flexible. "One Scottsdale could get a little bit larger," Nelson said. "We have the potential to have department stores or anchor stores, but nothing's been formalized. We'll be talking to those players. We believe that 2010-2011 or 2012 is when our retailers would like to see themselves here."
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)