WS Development has acquired the 375,000 sq.ft. Northtown Plaza in Amherst located at the intersection of Niagara Falls Boulevard and Sheridan Drive. The company paid $18.5 million for the aging center in a deal that closed on Tuesday.
Northtown Plaza is Chestnut Hill, Mass.-based WS Development’s first project in New York. WS Development develops, owns, manages and leases an extensive portfolio of over 88 properties totaling more than 20 million square feet with an additional 4 million square feet under development.
WS envisions a $75 million redevelopment of Northtown Plaza that “builds upon its history as one of the most significant commercial locations in the regional market.” It is bringing the first Whole Foods Market to Western New York. Demolition of the 100,000 sq.ft. former BonTon store will begin immediately to make way for the 50,000 sq.ft. Whole Foods Market.
“Building on the momentum created by Whole Foods Market, Northtown Plaza will be refreshed and rejuvenated to serve the local customer with an offering that is currently not available, as well as draw new customers to the market from Southern Ontario and the Western New York region,” says Dick Marks, Partner, WS Development. “Our long term vision includes a well balanced mix of best-in-class local, regional and national retailers and restaurants,” Marks added.
But to make that happen, WS Development is looking for Amherst Industrial Development Agency (AIDA) assistance. Since retail projects are generally not eligible for AIDA programs, the company needs to show the redeveloped plaza will be a “tourist destination” that attracts people from outside the region.
The Buffalo News has the head shaking details:
“We believe a unique, vibrant retail destination includes a cultivated mix of local, regional and national tenants. We’ve been successful with this process in a number of centers,” said Andrew T. Manning, development project manager for WS, who is overseeing the Northtown project. “Our focus on redevelopment is bringing new-to-market stores that create a great mix and something new that we believe will be successful.”
WS Development has submitted initial paperwork to the Amherst Industrial Development Agency, seeking a mix of sales, mortgage and property tax breaks that could total $6 million to $8 million. According to the AIDA, the company says it needs that to make the larger redevelopment work. Otherwise, it might settle for a $15 million renovation of the plaza – new paint, new signs, repaving – in addition to the Whole Foods store.
But first officials need to see evidence that specific tenants can draw customers from more than 50 miles away. “It’s a very big stretch to say that retail is a tourist destination. Walden Galleria could probably make that claim,” [Amherst Town Councilman Steven] Sanders said. “If it really is a destination that is going to bring people, then I guess it’s something we’d have to look at. But I have a hard time believing that’s going to be the case.”