Crossroads ready to start renovations

BOULDER – While the new regional mall under construction up U.S. 36 from here has announced a litany of tenants, Boulder Crossroads is preparing to name more new tenants at a groundbreaking for its renovations on Oct. 22.

The Macerich Co., owner of Crossroads, earlier announced anchor Century Theaters as well as a 2,500-square-foot Chipotle Mexican Grill. Macerich will strip the roof off the south end of the mall, creating outdoor promenades, and will renovate the facades there as well.

Westcor, owner of Broomfield’s FlatIron Crossing, so far has announced Foley’s, Lord & Taylor, Nordstrom, Dillard’s, Wild Flower restaurant, Canyon Café, Galyans Trading Co., Organized Living and Edie Bauer.

“We don’t have any worries. Our intent was never to compete directly against FlatIron (Crossing) anyway – that’s designed as a super-regional center,´ said Macerich executive John Genovese. He said Macerich’s intent is to create a project that serves the Boulder population as well as students at the University of Colorado, and that Macerich’s approach is not to announce tenants until deals are signed.

Tenants Macerich has been trying to attract, although not confirmed, have included Wild Oats, a sporting goods retailer like Gart Brothers or REI and “lifestyle” retailers such as Old Navy and Bed, Bath & Beyond.

Crossroads is not going to compete “in kind” with FlatIron Crossing, says Boulder council member Dan Corson. That Macerich hasn’t announced a long list of tenants is a non-issue, says Corson, who is trying to downplay any scenario of a shopping malls “battle.”

“My take on the whole thing is that we need to do it differently here,” Corson says, “and we need to talk about a long-term economic plan that involves more than Crossroads Mall.”

City Attorney Joe de Raismes also does not see a lack of tenant names in the news as any big deal. “I haven’t been worried about it,” he says. “If somebody else is worried about it, I don’t know about it. As far as I know they’re proceeding apace and plan to open on time. … (Watching for tenant announcements) is like watching the stock market. It’s not worth it.”

But Byron Koste, director of the University of Colorado Real Estate Center, says while it certainly doesn’t mean the world will come to an end, yes, Boulder residents should be concerned.

“I don’t think we know yet that it won’t work,” Koste says. “We all have to realize the significance of FlatIron (Crossing). It is not a direct overlap. But there are many tenants that will be choosing one or another, and they will not be doing both. To say that there is no overlap is a mistake.”

City Manager Ron Secrist says Macerich officials have shared with him names of potential tenants and pending leases, and he knows they are “working very hard” to attract the right mix. What he sees is a difference in strategies here: FlatIron Crossing is all-new and a regional mall attempting to capture a particular market; Westcor regularly will try to keep excitement up for the opening. Crossroads will use a different approach to highlight tenants.

“It is a matter of concern,” Secrist says, “so I’m not downplaying it. Tenant mix is a very important aspect of (the redevelopment). But there’s no reason to believe it’s not something that (Macerich is) working on.”

A developer of several highly successful retail projects in Boulder, Jim Loftus says – depending on the size of a project – a smaller developer might not be able to break ground without having signed tenants. But a developer the size of Macerich may use ongoing construction to encourage uncommitted tenants. And, because of its size, Macerich probably doesn’t need a loan to break ground; it may not need a glut of tenants beforehand.

“I’m sure they’d like them,” Loftus says, “but it wouldn’t prevent them from breaking ground. I can’t imagine that it would.”

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