Empty Promise

by MICHAEL MISHAK

 

The Criteria:
When Urban Partners surveyed the Avenue last fall it found 11 vacant storefronts. Considering two adjoining storefronts advertised as office space, the number jumps to 13. According to Jim Hartling, founding partner of Urban Partners, the firm used the following guidelines to designate vacancies: A storefront in which there is not an open store, nor the apparent sign of recent construction aimed at a near-term opening.

7908-10 Germantown Ave. Vacant: Summer 2001 Previous Tenant: Red Brick Resale 7924 Germantown Ave. Vacant: March 2005 Previous Tenant: Allstate Insurance 7926 Germantown Ave. Previous Tenant: Office Space 8001 Germantown Ave. Vacant: Late 1998-Early1999 Previous Tenant: New Spring Cleaners 8042-44 Germantown Ave. Vacant: September 1997 Previous Tenant: Under the Blue Moon

8117 Germantown Ave. Vacant: Fall 2004 Previous Tenant: Artisans Too 8133 Germantown Ave. Previous Tenant: Unknown 8331 Germantown Ave. Previous Tenant: Unknown 8401-03 Germantown Ave. Vacant: March 2003 Previous Tenant: Manner & Knoll

8430 Germantown Ave. Vacant: December 2004 Previous Tenant: Simply Cottage 8500 Germantown Ave. Vacant: Summer 2004 Previous Tenant: Fleet Bank 8600 Germantown Ave. Vacant: December 2003 Previous Tenant: gap 8620 Germantown Ave. Vacant: March 2003 Previous Tenant: Artscape

As the Chestnut Hill Business Association and the Chestnut Hill District slowly digest the results of a retail market study released earlier this month, local merchants and consumers are cautiously optimistic about a strategy that could fill the Avenue’s vacant storefronts.

That study, conducted by the Urban Partners firm, found the neighborhood’s merchants and shoppers identified the issue of vacancies as their chief concern in the Chestnut Hill business district.

The Urban Partners assessment, which surveyed Germantown Avenue from Mermaid Lane to Rex Avenue, in addition to a few side streets, listed 11 vacant storefronts last fall, five of which were located on prominent corners. According to a Local analysis, the total number of vacancies jumps to 13 when including two storefront properties advertised as office space.

The vacant storefronts dot seven of the business district’s 11 city blocks, stretching from 7908-10 Germantown Ave., the former home of Red Brick Resale, to 8620 Germantown Ave., the former home of Artscape.

Five different landlords own the 13 properties. Bowman Properties holds nine, followed by Chestnut Hill Real Estate, Hampton Assoc., Crossett Estrella and Henry and Francis O’Donnell — all owning one.

“The problem isn’t numbers,” said Jim Hartling, founding partner of Urban Partners, in an interview on Monday. “It’s the number of corridors.”

The properties most frequently cited by merchants and shoppers surveyed by his firm were those located on prominent corners, he said, including the former homes of: Gap at Evergreen Avenue; Fleet Bank at Highland Avenue; Manner & Knoll at Gravers Lane; Under the Blue Moon at Abington Avenue; and the Spring Cleaners at Willow Grove Avenue.

The 8000 block of Germantown Ave. houses the business district’s two most long-term vacancies. The property at 8042-44, formerly Under the Blue Moon, has been empty since September 1997; fliers advertising last fall’s Preservation Potpourri adorn brown-papered windows. The first floor space at 8001 has sat vacant for nearly as long, since the Spring Cleaners relocated across the street more than six years ago; yellowed signs announcing Shundeez Persian Restaurant have wrinkled since their posting last fall. Both are owned by Bowman Properties.

The vacancies, especially those of a long-term nature, contribute to an overall negative view of the shopping district, according to the retail market study. Seventy-seven percent of surveyed merchants cited recent negative changes in the district, placing vacancies at the top of the list. While the perception was more positive among shoppers, 52 percent still cited recent negative changes, taking issue with the empty storefronts.

Other vacancies are more recent. Simply Cottage left 8430 Germantown Ave. last December. Artisans Too closed shop at 8117 Germantown Ave. last fall. Fleet Bank relocated from 8500 Germantown Ave. last year. Artscape at 8620 Germantown Ave., owned by Chestnut Hill Real Estate, closed in March 2003. That same month Manner & Knoll relocated from 8401-03 Germantown Ave., moving into the former Wooden Train space at 8433 Germantown Ave., which itself had been vacant for about three years.

Following a national trend, Gap left Chestnut Hill in December 2003. According to the Board of Revision of Taxes, Hampton Assoc. — the New York firm that owns 8600 Germantown Ave. — owes $38,087 in delinquent real estate taxes from 2003. The city has placed a lien on the property.

The vacancy timeline for some properties remains unclear. At 8133 Germantown Ave., a “RESTORATION IN PROGRESS” sign sits on the floor behind dark windows; the interior is unfinished. The space at 8331 Germantown Ave. is advertised as either retail or office space. Blinds are drawn at 7924 and 7926 Germantown Ave., adjoining office spaces, the former of which recently housed Allstate Insurance.

Parbreakers, a golf shop, is expected to open next month at 8609 Germantown Ave., the former home of La Vie Creatif. The property, owned by Chestnut Hill Real Estate, had been vacant since last fall, but is not included in the Local’s list of current vacancies.

Engaging landlords

The district’s revival will depend on changing a process that has been largely reactive to changes on the Hill, Hartling said. That process, he said, should engage property owners directly. “If you’re doing that, you’ll be ahead of the curve when vacancies come,” he said. “You’ll be programming in a more immediate way, and not just reacting.”

The neighborhood’s key agencies — Chestnut Hill Business Association, Chestnut Hill District and Chestnut Hill Community Association — should form a partnership with local landlords to proactively recruit quality retailers, Hartling said.

Such a relationship is essential to revitalizing the Lower Hill, he said, which may involve restructuring real estate to make small spaces more attractive. “I think there needs to be a more positive climate for the landlords to discuss doing those kinds of things in the context of helping to recruit the kinds of tenants Chestnut Hill needs,” Hartling said.

While other business districts, including South Street and Roxborough, have hired a retail recruiter to do most of their legwork, Chestnut Hill may not need as much effort. Well positioned as “the grandparent of commercial district revitalizations,” Chestnut Hill has already laid the groundwork for high-end shopping, Hartling said.

“In other districts, there’s a reaction to simply getting better quality,” Hartling said. “In Chestnut Hill, you’re past that point. It’s a question of dealing with the very particular circumstances of businesses that will do well in this marketplace, picking among businesses of quality.”

Unanswered questions

The Local sought comment from four landlords — two local, two out-of-state — about their empty storefronts and the partnership strategy being advanced by Urban Partners. Those attempts were unsuccessful.

Phone calls to Hampton Assoc., the New York firm that owns 8600 Germantown Ave. (the former home of Gap) and Crossett Estrella, the Rockville, Md. firm that owns 8500 Germantown Ave., went unreturned at press time.

Sanjiv Jain, of Chestnut Hill Real Estate, declined to comment on the record for this article.

After requesting and receiving a list of questions from the Local, Richard Snowden, general partner of Bowman Properties, referred a reporter to CHCA president Maxine Dornemann, with whom — according to Snowden’s assistant — he had just spoken. Reached by phone, Dornemann declined to discuss details of their conversation on the record.

According to Hallwatch.org, an Internet-based city records watchdog, approximately 140 entities own the 206 properties along Chestnut Hill’s central business strip, from the 7600 block to the 8700 block of Germantown Avenue. The records are taken from Philadelphia’s Board of Revision of Taxes. According to the Web site, the records are current as of November 2004.

Bowman Properties is the single largest landowner, with 32 properties, holding more than 15 percent of the Avenue’s real estate. The next largest landlords are George Woodward Inc. and Chestnut Hill Real Estate, each owning six properties.

Excluding Bowman, ownership of Avenue properties is diverse and spread out among a long list of individuals.

As the business district’s largest landowner, Bowman Properties is uniquely positioned to shape Chestnut Hill’s commercial future. Snowden’s role as a major player is clear. As Bowman’s guiding force, he seemingly remains steadfast to his vision, patiently waiting for the right kind of tenants.

In 2001, Snowden told the Local: “If I wanted to have a tenant in every building I have empty in Chestnut Hill I could do it immediately. I’ve had four calls in the last week for cell phone stores. I won’t rent to cell phone stores, or nail salons. I turned down two tattoo parlors. … You know, what I try to do is put in a business I think ‘our audience’ will appreciate. It’s expensive for us to take this posture. All I have is space and time. Every day a space is empty I lose time. If you put the wrong tenant in a block it’s like tooth decay. I’m waiting for the right tenants.”

Though Snowden’s vision may be consistent with what many Chestnut Hill residents would like to see, the waiting game can be problematic, Hartling, the planning consultant, said. “At what point do you say, ‘We need to put something in there even if it’s temporarily?’” he said.

An open dialogue between community agencies and landlords goes a long way, he said.

A model

A proactive approach to retail recruitment has worked in neighboring high-end business districts of comparable size. Both Manayunk and Haddonfield, N.J. have found that engaging property owners in the hunt for quality tenants has paid off.

Manayunk

Manayunk’s Main Street rose to prominence throughout the 1990s but watched its hot spot status cool after City Council imposed a five-year moratorium on the development of new restaurants and bars in 1997.

Still, despite recent negative press, those leading the current development efforts say the business district is doing well and refining its image.

According to Kay Sykora, executive director of Manayunk Development Corp., the Manayunk business district has about five vacancies along the Main Street strip. The district claims approximately 150 businesses, about half of which are storefront operations, Sykora said.

With current retail trending toward “big-box stores” and malls, smaller business districts must major in specialty stores, she said. “You need to be more exotic,” Sykora said. “It’s challenging.”

In the constantly evolving world of retail, small districts have to counter the area’s major commercial developments, she said. Manayunk has already made at least three such adjustments, Sykora said. As the King of Prussia Mall flourished, Manayunk felt the impact, she said. “You’re never done,” Sykora said. “A study is just a moment in time.”

While Chestnut Hill has kept its business association and business improvement district separate, Manayunk chose to combine its business association and community development corporation in the late 1980s. Dubbed the Manayunk Development Corp., the group would later administer the area’s business improvement district as well. “We were trying to do the same thing with two groups,” Sykora said. That pairing has leveraged significant government dollars, Sykora said. Among the secured funding was $3 million for streetscape improvement and $8 million for waterfront development, she said.

Most of the funds raised through Manayunk’s business improvement district are filtered back to the community development group, which administers a street-cleaning program, manages a strategic marketing campaign, and organizes major events like the annual arts festival. Also, the group serves as a liaison among Manayunk’s property owners, merchants and community groups, Sykora said. “It’s important to bring everyone to the table,” she said.

Still, complaints among Main Street merchants are not uncommon, she said. Not unlike Chestnut Hill, some Manayunk business owners perceive an uneven distribution of benefits from the business improvement district. Open communication goes a long way to mitigating that perception, Sykora said. “Merchants tend to see things in a tangible way,” she said. “You constantly have to tell people what you’re doing.”

Enacted in 1997, the Manayunk BID was renewed in 2002, Sykora said.

According to Sykora, Manayunk has benefited from its “unusual” relationship with Dan Neducsin, a developer largely credited with the area’s boom in the 1990s. In addition to being Manayunk’s largest property owner, Neducsin doubles as the area’s retail recruiter, she said.

In an interview last Friday, Neducsin said none of his approximately 40 commercial properties were vacant. That success, he said, results from adhering to a vision for Manayunk. “I look for unique shops,” Neducsin said. “I won’t go after things like the Gap. I’m not against chains. I’m against chains you can visit on every corner. You have to be different than the strip malls or the regular malls.”

Approached by Starbucks, Neducsin chose to rent space to Bucks County Coffee Co. and La Columbe instead. He said he has also turned down prospective tenants he considered a poor fit for Main Street, including a sex shop. “You have to stick to your guns,” he said. “I think about a store’s impact on the whole district.”

A residential base is vital to the mix, he said. Neducsin has plans to develop 200 condominium units on the site of the now-defunct Carmella’s restaurant. Carl Dranoff, another developer, also has plans for a 160-unit loft complex nearby.

Haddonfield

Like Chestnut Hill, Haddonfield, N.J. sought outside help to revive its downtown business district in 2003. The district had been suffering from a steady decline in both the quality and variety of retail stores, in addition to an increase in vacant storefronts.

The borough retained Downtown Works, a planning firm, to develop a retail recruitment strategy. On the firm’s advice, Haddonfield hired a retail coordinator to implement the plan.

In that part-time position, Lisa Hurd has boosted Haddonfield to regional repute in a little more than 18 months. Last year, Philadelphia Magazine voted the area “Best Revived Shopping District.”

“We were backsliding, and it doesn’t take long to backslide into a real problem,” she said.

The revival began with filling a number of prominent vacancies along King’s Highway, the borough’s main thoroughfare, Hurd said in an interview last Friday. “It’s distressing to retailers and consumers to see unfilled vacancies,” she said. “It sends out a negative vibe. It’s a red flag to shoppers.”

About eight months later, with the key properties filled, she concentrated on the rest of the district. She credits some of Haddonfield’s proactive property owners in part for the turnaround. Taking her cue from the borough-commissioned retail study, Hurd routinely visits surrounding business districts, including Chestnut Hill and Manayunk, encouraging stores to open additional locations. She targets businesses that produce repeat customers, ones that could reinforce Haddonfield’s position as the primary shopping destination for its local residents.

The process involves property owners, prospective tenants and the borough, she said. “In most cases, all three work hand-in-hand,” Hurd said.

Coordinating with local landlords, Hurd maintains a list of the business district’s leases and their expiration dates. The practice of anticipating vacancies helped her fill a round of empty storefronts after the Christmas season, she said.

Last year, Haddonfield also established a business improvement district.

According to Hurd, Haddonfield has welcomed more than 20 new retailers in the last 18 months.

“Our goal is to have a pipeline of great stores knocking at our door,” Hurd said.

Hurd said she’s been negotiating with some prospective businesses for more than a year. “You have to stay on top of it,” she said.

With the retail coordinator position, Haddonfield has reduced the confusion felt by many sole proprietors in other districts with multiple business-related agencies.

According to Hurd, Haddonfield’s vacancy rate is “way down.” Three out of about 200 storefronts are currently empty, she said.

Looking forward

With the Urban Partners study as a blueprint, the boards of Chestnut Hill’s business association and business improvement district are expected to begin crafting strategies next month. Meanwhile, the business association is developing a leasing package for prospective retailers interested in Chestnut Hill. “We still don’t have anything that tells the Chestnut Hill retail story,” Biemiller said. Nearly complete, the kit should professionalize the recruitment effort, she said.

“We really do need to be more proactive,” Biemiller said. “We’re not the only game in town anymore.”