Renovation Report: Magnolia Plaza

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CORNELIUS – When Magnolia Plaza was built in the late 1980s and early 1990s, it had the character to match the sleepy lake town it served.

In 1990, the population of Cornelius was a hair more than 5,000, according to the U.S. Census Bureau. And the shopping center, at the intersection of Jetton Road and West Catawba Avenue, had a K&W Cafeteria and shops catering to the small town.

By 2012, the population had increased more than five times to 26,243, Census figures show. The once small lake-side town had transformed into a legitimate community for those who wanted Charlotte without living in the city.

But the shopping center also needed to offer more than what it had if it wanted to appeal to the new Cornelius. Publix, the Lakeland, Fla.-based grocer, saw an opportunity to come into the market and jumped at the chance to continue its expansion in the Charlotte-area grocery market.

B.V. Belk, the former owner and current manager of Magnolia Plaza with locally based BVB Properties, said changes had to be made if Publix wanted to build a store in the shopping center.

“There are quite a few tenants we’re moving so we can tear down the buildings and make way for the (Publix),” he said. “We’re tearing down the K&W Cafeteria and some of the building on the back side of the center.”

Growing Up Pediatrics is the most prominent tenant that will be moved to accommodate the Publix construction, Belk said. The pediatric clinic will move into a 4,500-square-foot space, he said.

Belk said the interior of the new space for the doctor’s office will require extensive renovations.

“Aquesta Bank used to be in that site, and after that we used it for a headquarters for the Republican Party during elections,” he said. “It’s never had anything like this clinic in it.”

Construction started around the first of the month on both the renovations of the relocation spaces and on preconstruction for the new Publix store. Belk said the renovations are set to be completed in the first quarter of next year. Joe N Guy Co., out of Atlanta, is the general contractor on the project, according to the Mecklenburg County building permits database.

But the renovations are only part of the story and are necessary only because Publix is coming in. The Cornelius store will be the fourth in Mecklenburg County, following stores to open in Ballantyne, South End and Mint Hill.

Maria Brous, spokeswoman for the supermarket chain, said the Cornelius store will be 49,000 square feet with a drive-thru. The store is set to open in late 2014, Brous said.

In order to get Publix at his shopping center, Belk sold Magnolia Plaza to Halvorsen Holdings, a developer based in Boca Raton, Fla. that regularly develops Publix stores. Belk still manages the property, which he said he expects to benefit from the Publix arrival.

“They draw a lot of national tenants to come into the center,” Belk said. “If you don’t have a Publix or Harris Teeter those tenants wouldn’t consider renting there.”

Project description: BVB Properties is renovating several spaces in Magnolia Plaza shopping center for tenant relocations due to new construction of a Publix supermarket.

Address: 8301 Magnolia Estates Drive, Cornelius

Vacancy rate: No vacancy after Publix is open, Belk said.

Renovation contractor: Joe N Guy Co.

Publix developer: Halvorsen Holdings

Project cost: $420,273 on the renovations; Publix cost hasn’t been disclosed

Construction started: Oct. 1

Expected completion: First quarter 2014 for the renovations; End of 2014 for Publix