McClintock Fountains bustling with expansion

If you’re looking for hopeful signs in the economy, you may need look no further than your own neighborhood.

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While the numbers rise and fall on Wall Street, often for no apparent reason, the best indicator of consumer confidence is often what you see every day.

That is why Kyrene Corridor residents can take heart in what’s happening at McClintock Fountains, a 25-year-old retail complex on the northeast corner of Warner and McClintock.

Later this month, RigaTony’s Restaurant will open at the site of the old 3 Margaritas, making it the fourth new business to open at the center since December.

And with negotiations to open another business at the site of the old KFC on the property, the shopping center is brimming with new life.

Although it would be premature to suggest that the economic crisis has ended, Steve Mariani, an executive with the company that owns McClintock Fountains, says what’s happening at the center is a positive sign.

“Anecdotally, at least, I think it’s an indication that we’ve at least arrested the slide on the retail front,’’ says Mariani, vice president of asset management for West Valley Properties, which owns eight shopping center in the Valley.

“Everybody seems to be getting their legs back under them, learning to operate in this economy. It just doesn’t feel as chaotic and panicky as it used to feel, even at the end of last year.’’

That is not to say you won’t find a lot of vacant storefronts across the Valley, of course.

In that respect, what is happening at McClintock Fountains may not be so much an indicator of an improving economy as it is a response to the current situation.

“There is no magic formula,’’ Mariani says. “It takes a lot of hard work to keep our tenants and customers happy.’’

In some cases, many of the company’s moves might have seemed counter-intuitive. In 2007, just as the retail industry began to fall, the company spent $1 million to renovate the 136,000 square-foot property.

The company’s commitment to maintaining its commitments to its tenants has never waned, Mariani says.

“A lot of owners, out of necessity, began to slash services, defer maintenance and cut contributions on the capital side,’’ Mariani says.

“But we’ve been doing this a long time. We realized that, even in this climate, there was something to be said for spending a little more money on our side because over time we knew it would strengthen our properties as other properties began to fall away.’’

Beyond that, the company has been aggressive and creative in attracting new tenants.

“It has to work for our tenants, too,’’ Mariani says. “We can’t make the deals we made a few years ago. With our re-pricing, we’re getting probably 20 percent less on leases than we did before. While some companies aren’t willing to do that, we know that we have to be sensitive to the realities out there.’’

Certainly, the price point has helped attract new business.

“To be honest, we would not have been able to afford what the rates were two or three years ago,’’ says Dave Donaldson, who opened his business, Donaldson Watch Repair, in December.

“We loved the location and kept coming back to it, but it still had to be something we felt we could afford to do or it wouldn’t have worked.’’

Erika Lucas-Goff, a principal in Hunt Real Estate ERA, which recently moved into the center, says that, as in most real estate, location is an important factor.

In this case, she said, moving into a more high-profile center already has played a role in the company’s growth.

“For us, it’s great as far as the visibility is concerned,” she said. “We love being on the Tempe- Chandler border, right in the middle of our target market.” It is more convenient for clients than two previous locations, she said, and, because of its larger size, has allowed the company an opportunity to grow in the years to come.

“We’ve been extremely pleased with the number of new agents we’ve been able to attract as a result of our expansion, and the management people at the center have lived up to all of the promises they made. It’s been a great move for us.”

According to the management company, the arrival of new businesses has helped keep McClintock Fountains well ahead of the 14.5 percent vacancy rate that is average for retail centers. The success of the center is based partly on finding tenants who bring new energy to the development, says Mariana. “One of the pillars of success in a retail center is being careful to select the right tenants,’’ Mariani says.

“When the economy is down, there is a great temptation to bring in anything you can. But that’s short-sighted.

“We’ve turned down tenants that were perfectly legitimate, well-capitalized businesses because we just didn’t feel they added the right elements to what we had. We want to have the right mix and create a buzz that benefits everybody. It goes beyond the customers. We want to create a synergy among our tenants where they feel like they are all in this together.

“I think that’s what you’re seeing at McClintock Fountains. That’s why we’re so excited about what’s happening there.’’

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