Atlantic Station has landed a new anchor tenant after recent retail closures at the project sparked outcry from some of its residents.
Seattle luxury fashion retailer Nordstrom said Thursday it will open its off-price store Nordstrom Rack at the Midtown development this fall.
The store will fill 28,000 square feet, taking the space of a former DSW shoe store that closed recently. A building permit application filed in Atlanta shows the buildout could cost nearly $1.5 million.
“This addition further underscores the strong leasing momentum and the continued evolution of Atlantic Station’s retail experience,” Vikram Mehra, senior managing director at global real estate firm Hines, said in a press release. Hines bought the retail town center of Atlantic Station in 2015 with capital partner Morgan Stanley, later developing new office buildings at the project.
Credit: sour
Credit: sour
The new Nordstrom Rack will become the eighth in metro Atlanta and only the second inside the Perimeter. The other is in Buckhead. Nordstrom also has two traditional department stores, located at Perimeter Mall and Phipps Plaza, and employs a total of 700 people in the state.
Nordstrom Rack carries merchandise from top brands sold at the upscale Nordstrom stores, with prices up to 70% off. The store inventory includes apparel, accessories, home decor, beauty products and shoes.
An Atlantic Station spokesperson said Nordstrom Rack will serve as a “powerful traffic driver” for local and regional visitors, complementing original anchor tenant Dillard’s.
“Atlantic Station will feature two highly reputable national retailers effectively bookending the retail corridor,” the spokesperson said in a statement to The Atlanta Journal-Constitution.
Atlantic Station has been known for its concentration of more mainstream retail such as Target, Old Navy, Victoria’s Secret and H&M.
Credit: arvin.temkar@ajc.com
Credit: arvin.temkar@ajc.com
The new lease comes as Atlantic Station residents have said they feel rattled by recent closures, notably the sudden loss of a Publix grocery store, which shuttered two days after Christmas. Other tenants DSW and Banana Republic closed early this year.
A few dozen residents in December held a protest over the Publix closure. A petition with more than 1,800 signatures is calling for Trader Joe’s to take its place.
The Atlantic Station spokesperson called the Publix closure unexpected and said it will take time to transition.
“That said, we’ve had productive conversations with several prospective operators — including both national and locally-based grocers — who have expressed strong interest in the space,” the spokesperson said in the statement. “While we’re not in a position to make an announcement just yet, we’re encouraged by the level of engagement and remain focused on securing a strong, long-term operator that meets the needs of the community.”
It’s not uncommon to see tenant turnover at projects as leases expire, or as landlords or retailers shift their strategy. For example, Ponce City Market has recently reshuffled some of its food hall vendors.
Atlantic Station is home to about 6,000 residents and has its own ZIP code. The project, which transformed a former steel mill into a mixed-use minicity, recently celebrated its 20th anniversary.
Atlantic Station says it has other new tenants set to open this year, such as restaurants Playa Bowls and Gocha’s All Day from restaurateur and television personality Gocha Hawkins.
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