Hartford Business Journal

6 HARTFORDBUSINESS.COM | NOVEMBER 11, 2024 Deal Watch Whole Foods market is a newer tenant at The Shops at Evergreen Walk in South Windsor. CONTRIBUTED PHOTO Turnaround Effort Outdoor shopping center Evergreen Walk reverses high vacancy rate by shifting focus to experiential offerings ties, including dining and fitness, in addition to shopping. Recent additions to the property reflect this strategy shift. Whole Foods has replaced Highland Park Market, serving as a stronger anchor to drive daily foot traffic, while the Goddard School and new health and wellness tenants have further diversified the property's offerings, Brandes said. Evergreen Walk has also capital- ized on the increased demand for outdoor spaces brought on by the pandemic, adding walking trails and expanding outdoor dining options. The new Golf Lounge has proven popular, further enhancing the center's experiential appeal. The 12,000-square-foot indoor facility has 11 bays with golf simula- tors that give golfers the experience of playing at more than 300 courses from around the world. It also features a full restaurant and bar. Evergreen Walk's "barbell" design, with anchor stores at both ends of the property and a long "Main Street" span in between, allows for flexibility in accommodating various tenant sizes, Brandes said. Rather than expanding Evergreen's footprint, Brand Street has focused on adapting existing spaces to meet tenants' changing needs. That has included combining two smaller retail spaces to create a larger one, or subdividing one larger space into two smaller ones, Brandes said. George McKerrow, CEO of Ted's Montana Grill, which has been a tenant at Evergreen Walk since 2005, said the shopping center's new tenant mix has helped attract more customers. While restaurants were hard hit by the pandemic, sales at Ted's Evergreen Walk location have recovered strongly, to about 80% of By Hanna Snyder Gambini hgambini@hartfordbusiness.com T he brick-and-mortar retail sector took a major hit from the emergence of e-commerce, before the pandemic delivered another blow and forced shopping centers throughout the U.S. to close for months. By 2021, following the height of COVID-19-related lockdowns, The Shops at Evergreen Walk in South Windsor recorded the highest vacancy rate in its history of around 50%, according to one estimate. Since then, the outdoor lifestyle shopping center has experienced a strong comeback, adding 14 new tenants in the last 18 months, which has brought the 350,000-square-foot property to a record-high occupancy rate of 90%. The turnaround, experts said, has been driven by a new management team and strategy for attracting customers, with a greater focus on experiential offerings and commu- nity integration to stay relevant in the face of online competition. The Shops at Evergreen Walk is owned and managed by a joint venture between Prudential Investment Management, part of the original development team, and Greenwich-based Brand Street Properties. Paul Brandes, principal of Brand Street Properties, had previously been affiliated with Charter Realty & Development, which took over management of Ever- green Walk in 2020. He has since started his own company. Brand Street Properties also co-owns and/or manages Blue Back Square in West Hartford, and West- port's Bedford Square, a mixed-use residential and retail development. Since taking over management of Evergreen Walk, Brandes has led a rebranding effort that has included a new name, website, logo, signage and outdoor enhancements, as well as a shift in retailer mix, he said. New tenants that have been added in the past few years include Shake Shack, Golf Lounge 18, La-Z-Boy, and new anchor store Whole Foods. Two more retailers, Lululemon and J Crew Factory, are set to open in late 2024 or early 2025. Changing marketplace Originally conceived as a New England village-style outdoor shop- ping center, Evergreen Walk debuted 20 years ago. It now has roughly 70 retail sites, including 14 of its original tenants. Brandes said Evergreen Walk's evolution mirrors the broader shifts in retail strategy over the past two decades, moving toward experiential tenants that drive repeat visitors. "Whether you're selling a product, services, dining or offering health and fitness options, you want to create an experience that's satis- fying, enjoyable and becomes part of people's repetitive routine," he said. "This project is part of that evolu- tion," Brandes notes, highlighting the transition from traditional mall retailing to outdoor lifestyle centers that become a hub for daily activi- NEW EVERGREEN WALK TENANTS These businesses have opened in the past 18 months: Whole Foods – Grocery Shake Shack – Food/beverage La-Z-boy – Home furnishing Sunglass Hut – Apparel Lenscrafters – Apparel Golf Lounge 18 – Entertainment Blue Mercury – Beauty Nike – Apparel The Goddard School – Early childhood learning center Deka Lash – Beauty Lovesac – Home furnishings My Salon Suite – Beauty Kung Fu Tea – Food/beverage Massage Envy – Health/wellness Source: Brand Street Properties Paul Brandes

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