Change is in store for The Block at Orange.
New owner Simon Property Group Inc. of Indianapolis has been working on plans for the mall since it acquired Maryland’s Mills Corp., The Block’s prior owner, last year.
Specifics could come within the next few months. Early plans call for a mall expansion with the possibility of condominiums.
The city of Orange approved the retail expansion and possible housing when Mills owned the Block,and before the housing market turned last year.
Simon is likely to add 120,000 square feet of retail space by expanding into a parking lot in front of Alcatraz Brewing Co. restaurant.
The 800,000-square-foot outdoor mall is one of a few with a skateboard park as an anchor.
Cypress-based Vans Inc. has a 46,000-square-foot indoor and outdoor skatepark and shoe and clothing shop there.
The Block also has Lucky Strike Lanes, an upscale bowling alley, a 30-screen AMC movie theater and a Dave & Busters, one of the top tenants at the mall.
“Within our portfolio, it stands out,” said Scott Mumphrey, president of the Mills division for Simon, referring to The Block.
The Block is big on entertainment, which has made it a hangout for teens, sometimes at the expense of other shoppers.
Simon is looking to pick up where Mills left off, still focusing on young shoppers but with well-known names. It has courted retailers such as Steve & Barry’s, Forever 21 and outlets.
The retail slowdown that took hold during the holidays won’t necessarily affect retailers’ plans to expand, Mumphrey said.
Retailers generally make plans 12 to 18 months out, he said. They’re now planning for 2009 and 2010 openings, according to Mumphrey.
Other deals for The Block have been in the works since 2006.
In a few months Simon expects to announce a couple of marquee fashion stores for The Block.
The company is Orange County’s largest mall operator. It also owns Brea Mall, Westminster Mall, The Shops at Mission Viejo and Laguna Hills Mall.
Orange officials are anxious for The Block to ramp up.
Naturally, the city would like to boost the $1.6 million or so in yearly sales tax it gets from The Block. The mall does roughly $150 million in annual sales.
The city also has a vested interest.
Orange provided $19 million in financing to help build the mall, which cost $165 million to develop when it opened in 1998.
The Block, formerly known as the City Shopping Center, sits on 74 acres near UCI Medical Center and Angel Stadium of Anaheim.
The city deal was structured so that as the mall’s sales go up, the city reaps more revenue, said Jim Reichert, economic development director for Orange.
The mall fared relatively well last year, even as the economy began to slow, Reichert said.
The opening of Victoria’s Secret and Hollister helped boost sales, he said. The mall is about 95% full, according to Reichert.
This year is going to be tougher, according to Mumphrey.
“But we’re better poised to endure an economic slowdown,” he said.
The Block has more discount and outlet stores than other malls. They include Off 5th-Saks Fifth Avenue Outlet, Ann Taylor Outlet, Steve & Barry’s and Old Navy.
On one recent weekday afternoon, many of the shoppers at The Block were healthcare workers in scrubs from UCI Medical Center and businessmen in ties.
There were some tourists snapping photos.
“The traffic that we get is exceptional,” Mumphrey said. “What we need to do is keep the people there longer. If you get the family, you’re going to get generations over time.”
The mall benefits from being near the Disneyland Resort. The Anaheim Resort Transit fleet of trolleys for hotel guests unloads right behind the theaters.
Hilo Hattie, which sells Hawaiian clothes and gear, is one of the biggest draws for tourists, said Wayne Williams, director of marketing for The Block.
The Block has been laying the groundwork for expansion by boosting security, sprucing up the mall and bringing in more community events.
They include the Orange Police Department’s Community Organizations and Public Services Expo and Fibromyalgia Awareness Day.
A portion of tenants’ rents go for local marketing.
The mall operator also is bringing its Simon dTour Live summer concert tour to The Block and Laguna Hills Mall. Acts still are being booked.
Past performers include teen favorites Plain White T’s and The Jonas Brothers.
Security has been a problem for The Block, with crowds of young people putting off older shoppers.
Now security guards have radios, Segways and other vehicles to move around the mall, Williams said.
The Block got rid of some of the advertising signs that dotted the mall. They served as obstacles more than anything, according to Williams.
The mall also is redoing advertising on pylons throughout the mall and in the parking lot. There are 16 small pylons and six as tall as palm trees.
Some of them have dated ads for Cingular Wireless, which now goes by AT & T; Wireless.
Williams estimates the mall’s expansion could take three to five years.
