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What's in Store?

Author: Juliet Porton
December, 2011 Issue


Coddingtown Mall’s owners are hoping to turn the page on the center’s history with a combination of infrastructure improvements and a renewed pursuit for name brand tenants.

 
A lot has changed since Hugh Codding first opened Coddingtown Mall as an open-air shopping center in 1962. With the construction of other area malls over the years, the advent of Internet shopping, the more recent economic recession and a steady exodus of tenants, Coddingtown has struggled to remain a draw to local shoppers.

Now, the mall’s owners, Simon Property Group and Codding Enterprises, are hoping to finally turn the page on that chapter of the center’s history with a combination of infrastructure improvements and a renewed pursuit for name brand tenants. The hope is that, through investment in Coddingtown Mall, both their own businesses and the economic outlook for the area can benefit. Here’s a look at what local shoppers can expect.

Coddingtown underwent its first major remodel in 1979, becoming one of the first enclosed malls in Northern California and adding its now-signature redwood ceiling and skylights. Over the years, large retailers like Liberty House, Emporium and Gottschalks have come and gone. In 2005, Simon Property Group acquired a 50 percent interest in the mall, and began a shared ownership with Codding Enterprises. Simon, headquartered in Indianapolis, is the biggest commercial real estate company in the United States and owns retail property all over the world, including local properties such as Santa Rosa Plaza and the outlet malls in Petaluma and Napa.

The city of Santa Rosa has itself grown, decade by decade, to encompass a larger, more diverse group of residents. Today, the revolving Coddingtown sign remains, now a registered historical landmark, as do the memories of Coddingtown Mall as the first stop for generations of Sonoma County shoppers looking for the perfect back-to-school outfit, holiday gift or just an enjoyable afternoon of people watching. As a publicly traded company, Simon could not release current sales or vacancy rate information, but it’s apparent to most visitors that patronage has dwindled over the years. Now the mall’s owners are eager to bring those consumers back. “One of the reasons we partnered with Simon [in 2005] was to complete a major remodel of Coddingtown,” says Lois Codding, vice president of leasing for Codding Enterprises. “It needed to be done if we wanted to stay competitive within in the market.”

A family-friendly environment

The majority of Coddingtown’s renovations were scheduled to be wrapped up by the day after Thanksgiving (Nov. 25), also known as “Black Friday” and traditionally one of the busiest shopping days of the year. Kimberly Hall, area director of marketing and business development for Simon in Santa Rosa, says the first changes visitors will notice when visiting the mall this holiday season will be the redesigned entrances on Guerneville Road and Cleveland Avenue. Inside, shoppers will be greeted with new carpeting and tile, new lighting fixtures and fresh paint. Restrooms have been remodeled and moved, with the addition of a private family restroom with a diaper changing area and nursing station. Additional common area soft seating has been provided throughout the mall, perfect for bag-toting spouses or those just taking a break between stores. Families will also appreciate the addition of a large indoor children’s play area. Located between JCPenney and Whole Foods Market, the play area will give parents a resting spot where they can socialize and let their kids burn off some energy during their mall outing.

In planning the remodel, mall owners were particularly eager to incorporate ways to make the center more family-friendly. They hope that amenities like the play area, stroller rentals and expanded dining options will encourage families to spend more time at the mall. Simon also offers its Kidgits Club at Coddingtown, which already has nearly 500 members. For a $5 annual fee, children receive a t-shirt, special monthly treats, a birthday gift and invitations to all club events. Past gatherings, held at least once a month, have included a Halloween party, reading events and cooking classes for mini-chefs. This winter, Santa’s arrival, the opening of the play area and a holiday celebration are also scheduled.

Bringing in new tenants

The renovation of Coddingtown Mall is meant to do more than just supply a facelift to the nearly 50-year-old property. Executives at Simon and Codding Enterprises are hoping the revitalization will attract badly needed retailers to the center, particularly those that may be new to Sonoma County. Lisa Codding, chief operating officer and director of Codding Enterprises, believes the mall’s owners have an opportunity to fashion a center that appeals strongly to the 30- to 60-year-old shopper. “We feel Coddingtown has always been more of a family environment,” she says. “We’re hoping to differentiate ourselves a little more from Santa Rosa Plaza [also owned by Simon Properties] and Montgomery Village Shopping Center [owned by Lisa and Lois’ uncle, David Codding] and bring in more children’s stores, higher-end men’s fashion and grown women’s apparel.”

Hall says Simon is looking for new tenants that will contribute positively to the existing roster of more than 60 retailers. “I think, more than anything, shoppers are looking for variety—for something new and fun with the hottest brands,” she says. “It’s nice to have a mix of different retailers that fit well into the overall shopping experience.”

The opening of Whole Foods Market on the north side of the center in September 2010 was an important first step in Coddingtown’s revitalization process. Though delayed for several years due to economic concerns, Hall reports that the 47,000-square-foot store has definitely had a positive impact on the mall’s foot traffic since opening. With its loyal customer base and onsite tap room, Whole Foods has attracted shoppers that might have otherwise driven right by. “Having an upscale grocery store at Coddingtown brings in a whole new kind of customer and offers a unique shopping experience. It’s something our mall shoppers and other tenants really appreciate,” she says.

Wes Walston, team leader at Whole Foods Coddingtown, is looking forward to what the remodel means for the mall and for the community. A Sonoma County native, he remembers Coddingtown in its heyday and is eager for it to again be the attraction it once was to local shoppers. “I think if you build it, they will come,” says Walston. “People want to come here to shop again.”

JCPenney, one of the mall’s most successful anchor stores, put its own money into a remodel of its store earlier this year, updating the décor and making room for a gleaming new Sephora shop on the ground floor. Sephora, an international cosmetics and perfume store chain, is also expected to draw its own upscale clientele through the doors, hopefully benefiting the other mall tenants.

Another big “get” for Coddingtown’s owners this year was BJ’s Restaurant & Brewhouse, which is slated to open in the summer of 2012 in a spot that was once part of the recently downsized Old Navy. BJ’s is expected to be one of the largest restaurants in Sonoma County when it opens, able to accommodate up to 270 people. The restaurant is part of a chain, started in Santa Ana, which is known for deep-dish pizzas, an extensive beer menu and a high-energy environment. “BJ’s will be the anchor restaurant that will attract other great restaurants to the shopping center,” says Lois Codding, who believes BJ’s extensive menu, sports bar and casual atmosphere will appeal to a wide demographic of Sonoma County diners.

Hall reports that Simon’s corporate leasing department is currently in talks with several companies about the large space near the mall’s north entrance, which will likely be divided. “With the addition of BJ’s and another family-friendly, full-scale restaurant at Coddingtown, along with Sweet River Grill and our other [existing] restaurant options, we’re looking forward to providing a great dining experience for visitors of all ages,” she says.

The transformations continue

Rumors have been circulating for some time about the future of the former Gottschalks location on the south end of the mall, but the owners say they can’t reveal their plans for the site quite yet. “We’re having some really interesting discussions right now and have a letter of intent signed with a major retailer. We’re hoping we can proudly announce that by early next year,” says Lois Codding. “I think it will be a great addition to the mall and to the whole Coddingtown area. People are going to be really excited about it.”

In the meantime, Codding Enterprises appears to be making headway on another nearby project, as well. In 2010, the company purchased the former Los Robles Lodge site, just south of the mall on Cleveland Avenue. The 3.5-acre property had been purchased by an Oakland-based developer that hoped to add residential units to the neighborhood, but the dismal housing market stalled construction. Now, Codding Enterprises has cleared the property and hopes to settle on a plan soon that will maximize its potential.

Lisa Codding says the company is currently exploring every possibility and hasn’t yet determined whether the land will be used for retail, housing or some mixture of the two. “We want to be sure that whatever option we decide to go with will be a nice complement to the area and will drive foot traffic to Coddingtown,” she says. She adds that, because the potential Gottschalks location tenant is a big one, it’s drawing a lot of additional outside interest to the Los Robles property.

The proposed placement of a SMART commuter train station on Guerneville Road, close to Coddingtown and the Los Robles property, also stands to bring new shoppers, diners and workers to the area. Codding Enterprises has long been a proponent of the Guerneville Road location, citing it as the most convenient and accessible of those under consideration. It also believes the station can benefit not just the mall, but the entire area. “I think it’ll be an improvement for the neighborhood,” says Lisa Codding. “Having public transportation like the SMART train so close to Coddingtown will drive a lot of businesses to want to come and surround the station and the mall.”

The SMART train will also be a valuable means of transportation for the many residents of the wider neighborhood and stands to draw office tenants eager for the convenience of nearby restaurants, retail and transportation options, adds Lois.

“The city has been very supportive and helpful in this whole process,” continues Lisa Codding. “It really believes in partnering with us to move forward and see that this area gets revitalized.”

Up next: Santa Rosa Plaza

Santa Rosa’s downtown shopping mall, Simon-owned Santa Rosa Plaza, is scheduled for its own renovation in 2012. Simon first announced its plans for a multi-million dollar remodel earlier this year, expected to affect many major aspects of the mall, both interior and exterior, including ongoing issues with the mall’s integration with the surrounding neighborhoods. It’s currently working through the approval process for the project with city planners. “The major interior construction won’t begin until after the holidays so as to not inconvenience shoppers or our tenants,” says Hall.

Santa Rosa Plaza’s remodel is also intended to attract new tenants to the nearly 30-year-old center, which currently houses more than 120 stores. The mall already scored a major win in 2010 by drawing Forever 21, an affordable, fashion-conscious retailer for men, women and children, to the first level of the vacant Mervyn’s department store space.

A long time coming

Representatives from both Simon and Codding Enterprises say Coddingtown’s recent remodel is a sign of their commitment to and optimism about retail prospects in Sonoma County. Lois Codding reports that mall merchants are excited to see the long-anticipated changes finally come. “It’s been promised to them for so long,” she says. “Obviously, the economy affected us like everyone else and we had to put things on hold, but tenants have been really pleased that we’re finally able to come back with Simon and address these issues.”

Hall says the two owners are eager for shoppers to experience the changes at Coddingtown Mall and are looking forward to announcing several new, long-term tenants in the coming months, in addition to temporary, seasonal retailers like Hickory Farms and Calendar Club. There’s also hope that the revitalization process, beyond providing construction jobs, can be a spark for additional local job creation. “Anytime there’s this much excitement about a renovation—especially at a property like Coddingtown, where there hasn’t been change in a long time—it generates a lot of positive interest among potential retailers,” says Hall, who also grew up shopping at a bustling Coddingtown. “The more people see, the more excited they’re going to be. I think, overall, this is going to be absolutely positive for Sonoma County.”


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