The Village at Valley Forge, a mixed-use urban style town center with retail, residential and hotel, will complement neighboring King of Prussia Mall, the largest retail center on the East Coast.

The Village at Valley Forge Adds Town Center
to High-End Retail in King of Prussia

KING OF PRUSSIA, PENNSYLVANIA --  How often does a 100-acre-plus parcel of vacant land become available for commercial development directly adjacent to the second largest mall in the country?  Once in a millennium, perhaps?  Well, that’s what’s happening in King of Prussia, Pennsylvania. 

      According to the International Council of Shopping Centers, King of Prussia Mall is the second largest retail center in the United States, only behind Mall of America in total building area.  Situated directly adjacent to King of Prussia Mall, a 136-acre golf course finally has been re-zoned to allow for mixed-use development.  The opportunity to build on the synergy and draw of King of Prussia Mall is almost too good to be true! 

      Divaris Real Estate is serving as leasing coordinator, consultant and development advisor for The Village at Valley Forge, a town center consisting of retail, residential, office, hospitality, entertainment, parking and cultural and civic elements in King of Prussia, Pennsylvania. The project will feature high-end retail, new-to-the-market specialty shops and an upscale merchandise mix of signature restaurants, home furnishings, lifestyle retailers, entertainment and fashion.

      The developer for the project is a partnership comprising of Northwestern Mutual and Realen Properties. The development will take place on the 136-acre site that is currently operating as a golf course, known as The Valley Forge Golf Club. It’s situated adjacent to The King of Prussia mall complex, which is made up of The Plaza at King of Prussia, The Court at King of Prussia and The Pavilion.   The complex – the two malls and surrounding retail — is one of the strongest retail hubs on the East Coast, and renowned for having some of the highest grossing sales volumes anywhere in the country. 

      The mall itself comprises almost 3 million square feet of space with eight major anchor tenants, including Macy’s, Bloomingdales, Neiman Marcus, Nordstrom, Sears, JCPenney, Strawbridge’s and Lord & Taylor. In addition, the mall features a great mix of high-end retailers, such as Hermes and Louis Vuitton.   With retailers like these in its line-up, its no wonder that King of Prussia Mall draws shoppers from as far as 50 miles away.

      “That is a strong attribute and asset that we intend to complement,” says Gerald Divaris, chairman/CEO of Divaris Real Estate, Inc.  “The idea here is not to compete but rather to create a synergy that will enhance and supplement what already exists.”

      The Village at Valley Forge is situated near and accessed via Interstate 76 as well as Highway 202, which falls right onto the site and provides access off Guthrie and East Swedesford Roads. It has great visibility from Highway 422 and, over the past ten years, the Pennsylvania Department of Transportation has spent close to $300 million on road improvements in the location, all of which will benefit the project.

      The Village at Valley Forge has gone through a long process of re-zoning and, ultimately, obtained its entitlements through a court ruling issued by the Pennsylvania Supreme Court. The plan for the development is to create a high-end, mixed-use project that will consist of approximately 850,000 square feet of retail space in an urban, street format, with a grid-street pattern, and parking in multiple parking garages. The retail component will be accommodated on one or two levels, with 3,000 residential units of varying styles and configurations above, and adjacent to the retail space and the open areas. In addition, the project will include a 350-room, four- to five-star conference and business-class hotel, with resort-style facilities.   It will be the first of its kind in the immediate trade area to offer fitness and spa facilities and services, planned activities and entertainment for vacationing families.  There will be a series of water features running through the property, connecting the residential and commercial components of the project. Adjacent to one of the lakes will be an amphitheater that can be converted to a skating rink in the winter months.

Plans call for a strong mix of home furnishings stores and high-end specialty restaurants, currently absent from the King of Prussia/Main Line market.

      Because of its size, the project will be designed by a number of architects, each charged with designing different buildings and creating a city center environment that ties the project together. With a strong sense of place, the Main Street will be anchored by unique tenants that are either new to the market or coming to the market for the first time. Negotiations are underway with a variety of exciting specialty stores and anchor tenants that don’t yet exist in the trade area. Plans also call for a strong mix of home furnishing stores, which is currently absent in the King of Prussia/Main Line markets, and a large number of high-end specialty and signature restaurants.

       “In that area, only four of Zagat’s top 50 restaurants are located outside of the city center of Philadelphia,” notes Divaris. “So there is a real opportunity to attract a mix of signature restaurants that either have celebrity chefs or special themes in terms of cuisine.”

      The demographics for the center are exceptional, featuring a primary trade area with an average household income of $108,000 and a per capita income at around $42,000. Roughly 50 percent of the market is in the $75,000 plus household category. Almost 14 percent of households are in the $75,000 to $99,000 bracket, with 37 percent at $100,000 or higher. The median age, within a 5-mile radius, is 37.6. And with an unbeatable location, great access and visibility, the project is anticipated to be a huge success when it opens in the spring of 2008.