Officials with Gulfstream Commercial Services said Monday that their plans for Towne Square Mall are nowhere near fully developed, but that their commercial real estate brokerage company has many ideas for revamping Owensboro’s largest retail facility.
It was announced in early December that a local investment group, TSM Holdings, LLC, purchased Towne Square Mall, and that the deal was brokered through Gulfstream. According to Gulfstream Chief Operating Officer Ed Ray, creating a diversified space will be Gulfstream’s main focus for the mall.
“Right now we’re evaluating exactly what our vision will be, and how we achieve that, and how we fill up that space with a meaningful mix,” Ray said. “There will certainly be a retail component we’ll strive for, but you have to diversify the space to keep it viable.”
It’s going to take some time for Gulfstream and TSM Holdings to develop a detailed plan for Towne Square Mall, but part of that process includes figuring out, not only what Owensboro’s needs and wants are for the space, but what the needs and wants are for those who’d travel to the mall from outside of Owensboro.
“In our market, what’s the best decision for us?” Ray asked. “We want to look at malls that are succeeding in other cities. We don’t have a definitive plan, but we are taking into account the feedback and input people are sending to us.”
Some of the most common ideas Ray has heard include adding more restaurants and boutiques to the mall. Others have suggested bringing back stores that used to reside inside Towne Square Mall, he said.
“People want to go in and eat. They’re excited about the opportunity for another restaurant to be in the mall,” he said. “We want anchor stores to continue there too.”
Ray said it’s possible that part of the mall could serve a function for senior citizens in the community, especially since there’s a growing number of locals in that age demographic.
“We’ve got to be cognizant of the fact that seniors are vital and important to our community — they like having activities, and that should come from both the public and private sectors,” Ray said. “When we look at ways to pull together the best and most practical components for the space, we’re open to almost anything that’d make it work for everybody.”
Other ideas Ray and his team have talked about include the addition of hair salons and bringing in medical service providers and other service-type industries to the building.
“There’s no tire services south of the bypass on Frederica aside from Sam’s and Walmart, and people have told us they liked it when Sears had auto and tire services [at the mall],” he said.
Mixing these types of service-related businesses with more retail and restaurants could be key to creating a long-lasting mall that can be enjoyed by different age groups, Ray said. In fact, some brokers with Gulfstream just returned from a trip to New York, where they spoke with dozens of retailers about bringing their businesses to Owensboro.
“We have brokers who are pros at filling commercial space,” he said. “If you walk through Towne Square Mall right now, you might notice it’s a little cleaner inside, and we’ve opened it up some. It’s about making little changes as we work to develop our plan.”
While Gulfstream has listened closely to ideas about what to put inside the mall, they’ve also heard feedback on what not to put inside the mall.
“We’ve heard people say they don’t want another church or a flea market there — several people have said that,” he said. “However, it is a business venture, and there’s a viable mix that might include a religious venue. Nothing’s been taken off the table so far.”
As for rent prices and other costs associated with opening a business at Towne Square Mall, Ray said Gulfstream is currently working on a pricing structure.
“We’re taking each inquiry on a case-by-case basis because your location inside the mall goes into [the price], but what someone pays per square foot isn’t the whole equation,” he said, adding that maintenance, custodial, utilities and infrastructure improvement costs all play a part in determining rent.
“We’re trying to structure it right now so that it’s an attractive price point, but we want the right mix,” he said. “If we have to hold off at times, we will. But the price will be determined on a space-by-space basis.”
