At age 48, David Anderson has been a shopping center boss around the country. Now, he's come to Atlanta from Houston to try to boost the fortunes of Atlantic Station, polish its tarnished image and turn the mixed-use complex into what its planners dreamed.
He's been on the job for just a few months as vice president-general manager, moving from managing the Houston Galleria, a 2.4 million square foot retail, office and hotel space complex.
Before that he ran the Edison Mall and Coconut Point complex in Fort Myers and Estero, Fla., and was mall manager for Towne West Square in Wichita, Kan.
Anderson's current employer is North American Properties, which owns 586,000 square feet of retail space at Atlantic Station. It's partnered with CBRE Global Investors, which also owns the vacant land and office towers. The companies bought the 138-acre project for $173 million in 2010 at a time when retail sales were plummeting, along with prices of office space.
Q: In the real estate climate that's existed since about 2007, companies like yours have been extraordinarily careful in purchases. You looked at more than 200 possible deals before buying Atlantic Station. What looked good here?
A: Atlantic Station was an underperforming asset in the most dynamic market, Midtown Atlanta, in the region. We acquired it for 23 cents on the dollar, which afforded us the ability to invest the dollars necessary to be successful. The proof is in the pudding — sales increases that outpace the industry.
Q: At the time of the purchase, Atlantic Station had lost its luster. Crime was a problem. What did you do?
A: We saw it as a turnaround situation. We have closed clubs that were bringing in late-night partying, signed 15 new leases in the past 15 months with boutiques and restaurants, and dramatically increased public safety. This has led to a 15 percent increase in sales. We have more than 50 stores.
Q: Tell me more about the security situation.
A: We have a strictly enforced code of conduct, upgraded our staffing and made huge strides. We have more off-duty Atlanta police officers and have increased our private security force. It's all about presence. And it seems to be working because retail sales are up. We even have a curfew. If you are under 17, you must be accompanied by an adult after 9 p.m. Individuals under 21 are not allowed on the property after 11 p.m. We are trying to attract moms and kids. We invested $2.5 million to improve parking.
Q: Is this your major challenge trying to change the perception about crime?
A: Probably. We have made some huge strides, and the overall perception has drastically changed. We want people to be polite, and have signing posted throughout the property. We want people to refrain from making loud noises. Our officers are following a pretty comprehensive list of rules intended to make our customers and the residents feel more comfortable. We have signs up that remind people to act responsibly, be polite, refrain from making loud noises.
Q: Atlantic Station has been criticized in the past for trying to be all things to all people. What is your target market?
A: The average household income within three miles of Atlantic Station is about $92,500. Many people are affluent, educated. That's our primary demographic. Generation Y. But we cater to young and old and families. We have community meetings and have formed advisory boards. We make changes based on feedback. We are hosting a lot of events, such as a major tennis championship coming up soon. It will attract 50,000 people. We have over 200 events on an annual basis here.
Q: What percentage of your retail space is leased?
A: It's in the high 80s in percentage terms — 86 percent, from 74 percent a year ago.
Q: How much are sales up?
A: An average of 15 percent in the first quarter of this year, compared to the same period in 2011. More than 10 of our retailers and restaurants are up more than 25 percent over the same period, with a handful more than 40 percent.
Q: What does that say about the economy?
A: I think our strong sales are an indicator, definitely, that consumer confidence is up. Based on our barometers and traffic trends, I think we are heading in a positive direction. But I think there are still challenges with the overall economy.
MEET DAVID ANDERSON
Job: General manager of Atlantic Station
Age: 48
Family: Divorced, two teenaged sons
Lives: East Cobb
Hobbies: Music, golf, fishing, drumming
Most recent book: "Good to Great," by Jim Collins
Favorite movie: Moneyball
Please send suggestions for candidates to interview to writer@billhendrick.com
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