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Centennial has confirmed that it intends to demolish part of The Shops at Willow Bend within the next year as the first step in a broader repositioning of the property. The partial teardown is designed to clear the way for a large-scale mixed-use redevelopment that will introduce new retail, restaurants, housing, office space and an on-site hotel at the mall site.
The Shops at Willow Bend has been a regional retail destination for more than two decades. The center originally opened on August 3, 2001, during a period of robust development for enclosed regional malls. Over time, however, the property encountered financial challenges that culminated in a loss of ownership by its previous sponsor.
In March 2020, then-owner Starwood Retail lost control of The Shops at Willow Bend after it was unable to refinance a $135.7 million loan secured by the property. The failed refinancing effort underscored the growing difficulty of recapitalizing older mall assets amid shifting consumer behavior and lender caution toward traditional brick-and-mortar retail. Following that event, the mall was characterized as troubled, reflecting both operational headwinds and capital structure stress.
Centennial stepped in and took over the property in 2022. Since assuming control, the company has moved toward a strategy that reduces the mall’s reliance on traditional department store anchors and increases the mix of uses on the site. The planned demolition of a portion of the existing mall footprint is a central component of that approach and is expected to unlock development parcels for new vertical product.
Once demolition work is finished, Centennial plans to begin construction on the residential and retail components of the new mixed-use district. The introduction of housing, additional stores and restaurants, along with future office space and a hotel, is intended to reposition the asset from a conventional enclosed mall into a more diversified, open-format environment that can support multiple demand drivers.
The transformation comes as several longtime anchors have already exited or announced plans to leave The Shops at Willow Bend. National department store brands such as Macy’s, Dillard’s and Neiman Marcus have closed or signaled their intention to close their locations at the property. Even with these changes, the mall continues to host a number of operating retailers and service providers.
Notable remaining tenants include Crate & Barrel and Equinox. According to Centennial, these businesses are expected to remain open and continue serving customers while the partial demolition and initial redevelopment phases are underway. Their ongoing operations will help maintain a measure of activity and customer traffic at the site during the early stages of the project.
The post Centennial to Demolish Part of The Shops at Willow Bend for Mixed-Use Redevelopment appeared first on CRE Market Beat.
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