The Riverwalk has been stripped to exposed concrete and beams, all evidence of a 1980s-era shopping mall hauled away.
By summer next year, developers with The Howard Hughes Corp. hope their new tenants in the planned Outlet Collection at Riverwalk will be open for business in a transformed space.
The Dallas-based development company gathered city and business leaders Tuesday for a hard-hat tour of the $70 million construction project. Among the crowd were Mayor Mitch Landrieu and council members Kristin Gisleson Palmer and LaToya Cantrell, whose districts intersect at the half-mile-long property.
"The Riverwalk has been an essential part of the New Orleans riverfront for decades, welcoming visitors to the city," David Weinreb, Howard Hughes chief executive officer, told the crowd. "But as the city experiences a rebirth as one of America's greatest cities, the Riverwalk is poised to transform along with it."
Developers say the Riverwalk will now be the first outlet mall in a downtown setting, in a city in need of more retail options. Construction is expected to be complete by late spring or early summer of next year.
For two years, the company worked to attract tenants, developers said. A key element in making it work was expanding the building, which narrowly snakes along the river. In some areas, the original shops were only 20 feet deep from their entrances. But national retailers demand bigger spaces of 65 to 90 feet in depths, developers said.
The renovation will add 50,000 square feet, bringing it to a total 250,000 square feet. In some areas, the mall is widened 30 feet toward the land side and 90 feet toward the river.
"When people think of outlet malls, they picture the typical suburban or rural settings, not the heart of a downtown area," Weinreb said. "It was uncharted area to lease a downtown outlet center, particularly so close to a great first-class retail experience."
A short walk away, The Shops at Canal Place offers high-end, pricier retail options, including Saks Fifth Avenue.
Cantrell joked that she could only visit Saks "when it was a good sale, or even a damn good sale," but an outlet mall is "speaking my language."
"So from the front door to the back, I know that not only will I be here, but the residents will be here and our visitors will have a great place to hop and have a wonderful time," Cantrell said.
The original Riverwalk Marketplace opened in 1986 in an area used in the 1984 world's fair. More than a quarter-century later, the mall remained largely the same.
Michelle Waak, Howard Hughes vice president for leasing who first proposed redevelopment, said for many years, the Rivewalk was a successful, full-priced mall.
"When it came back after Katrina, it really didn't come back in the same fashion that it was prior to Katrina," Waak said. "As we were walking through, we just knew it couldn't sustain the way it was. It's an iconic location. It's an iconic property. We just felt that i has a better use."
The company took over the mall in 2011 after the previous owners, General Growth Properties, filed for bankruptcy protection.
Among the new tenants are 10 retailers expanding into Louisiana for the first time, including Neiman Marcus with its bargain version Last Call Studio.
Wayne Hussey, Neiman Marcus senior vice president of properties and store development, was also on the tour. He said when deciding to come to Louisiana, his company took a hard look at its customer data.
"We have a very strong customer base already in the state of Louisiana," Hussey said. "Now, they shop in Dallas. They shop in Houston. They shop in Atlanta. They shop in Las Vegas. They shop online. We want them to shop here."
Other tenants include: Tommy Bahama, Sunglass Warehouse, Red Mango, New Balance, Gap, Guess, Kay Jewelers, Clarks, U.S. Polo Assn., Hartstrings Childrenswear, Forever 21, Chico's, Crocs, American Eagle and Steve Madden. Coach will open a factory store and a men's factory store.
Company officials said the new space is 94 percent leased, with room for another six to 10 stores, and financing on the project closed last month.
While Howard Hughes' project came closer to reality, another group of developers recently walked away from plans for an outlying outlet mall in eastern New Orleans, at the site of the shuttered Six Flags amusement park.
Provident Realty Advisors and DAG Development said the market couldn't support two such outlet malls. The Industrial Development Board and the city are now preparing to select a new plan for the city-owned property.
The New Orleans Business Alliance recently issued a study that found New Orleans residents spend $1.9 billion on retail goods in neighboring parishes every year, more than the $1.48 billion they spend inside in the city.
City officials point to a growing list of national companies moving in: jeweler Tiffany's, low-price fashion H&M, Costco and new Wal-Mart stores, among others.
"It sends a huge signal that a company like Howard Hughes Corp. would invest in the city of New Orleans," Mayor Landrieu said. "Other retailers have seen it this way, but you guys are a flagship."
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