Gate Growth: Childress Klein Properties plans RiverGate expansion

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In a few months, something is going to happen in Charlotte’s real estate market that hasn’t happened in about four to five years.

Construction will begin on speculative retail space.

On March 19, the Charlotte City Council approved a rezoning request that will allow Childress Klein Properties to begin moving dirt on a 155,000-square-foot expansion of RiverGate at 12807 S. Tryon St.

CKP is the developer and owner of the 550,000-square-foot Steele Creek town center that opened on South Tryon Street about six years ago. Major tenants include The Home Depot, Target, Best Buy, Office Max, Old Navy, PetSmart and Books-A-Million.

“We are 100 percent leased,” said Childress Klein retail partner Chris Thomas. “The community is telling us they want to see new stores that we didn’t have the room to accommodate, and we are hearing from retailers who want to be there. We are responding to demand.”

At the same meeting, the council also approved a rezoning for 11 acres of adjacent land owned by Sarah Belk Gambrell. Childress Klein will develop the property for her into 100,000 square feet of office and professional space.

The RiverGate expansion will be built on 22 acres of vacant land adjacent to the current center, separated by Walker Branch Road. It is expected to open in fall 2013.

Because Childress Klein is in lease negotiations, Thomas would not name retailers the company is talking to. He would only describe the retailers’ offerings: home fashion, arts and crafts, cosmetics, health and beauty and specialty apparel and shoes.

“They are the retailers people in this area typically drive to SouthPark or Pineville for,” he said. “The expansion gives us the opportunity for different kinds of retail not represented there now. It will be complementary.”

Unlike many other local shopping centers and malls, RiverGate did not lose any major tenants, nor did vacancies increase much in the small shop space, during the recession. Thomas credited the strength of the southwest Charlotte market, noting that, unlike other areas, it was not “over-retailed.”

Thomas said plans are not far enough along on the project to put a price tag on the expansion. For instance, he said, some of the new tenants may choose to purchase the parcels on which they sit, as current tenants Home Depot and Target do.

Charlotte-based LandDesign is handling the land planning and landscaping for the site. Hodges & Associates Architecture out of Dallas is the architect and has worked with Childress Klein on other projects. The RiverGate expansion’s style will mirror the architecture of what is there now.  A contractor has not yet been chosen.

The site backs up to Walkers Branch Creek. Childress Klein built a trail system along the creek during construction of the original shopping center and will now expand it.

Meanwhile, in Rowan County, Childress Klein plans to open Westgate Commons at the intersection of Jake Alexander Boulevard and Brenner Avenue, the company’s first foray into the county. An Aldi grocery store debuts in April. Plans call for about 100,000 square feet of retail and office space.

Childress Klein has developed more than 40 million square feet of retail, office and industrial space in the Carolinas and Georgia since it was founded in 1988. It also has an Atlanta office.

Construction on the land owned by Gambrell will occur concurrently with the shopping center construction. Thomas said it will primarily be professional space, such as a bank branch and medical offices. The opening is slated for spring 2014. LandDesign will also handle the land planning. The architect and contractor have not been chosen.