Divaris Solutions Biltmore Square Mall

Aerial Photo of Biltmore Square Mall in Asheville, NC

Asheville, NC
Plans for Biltmore Square Mall's renovation include high-end, off-price anchors, upscale outlets, expanded cinema, an entertainment-oriented component, high-end restaurants and a hotel.

HISTORY

The 500,000-square-foot Biltmore Square Mall in Asheville, North Carolina, is undergoing a major transformation. Though the existing structure will primarily stay intact, the content, focus and image of Biltmore Square is getting a much-needed renovation by Divaris Real Estate, Inc (DRE).

Biltmore sits at the confluence of Interstates 26 and 40 and is located across from the Biltmore Estate. The Pisgah and Nathalla national forests are located nearby, as well as the Smoky Mountains and the Blue Ridge Parkway.

The Asheville market attracts more than 13 million visitors annually and is one of the ‘Top 100’ places to live, as chosen by Relocate America in April 2007. It is also a ‘Top 15 Dream Town’ according to AARP.

Asheville has a year-round population of more than 600,000 and the average annual income is approximately $60,000 per household. Also, the city is home to a high number of empty-nesters and part-time residents that have a second home in the area. These groups tend to have a higher disposable income.

SCOPE OF ASSIGNMENT

The whole picture, tourists plus affluent residents, lends itself very well to the repositioning of Biltmore Square to better fill that need for both residents and visitors alike.

Asheville is currently lacking a high-end outlet and entertainment center. The fact that the city is so popular with tourists, coupled with the area’s demographics, makes the site a natural location for an outlet-oriented center.

RESULTS

After an extensive study, the conversion of the former Biltmore Square regional mall into an upscale outlet/off-price center with an entertainment focus will be the best direction for the property. With little added to the mall, structurally, DRE is looking to bring in hotel and entertainment uses and to utilize some of the excess land.

Preliminary contacts with prospective tenants have met with great excitement. An architectural team and cost estimators have started work on the project and an announcement of a new name, anchor tenants and its design is expected by early 2009.

When the renovation is complete, the center will feature a high-end, off-price anchor, along with numerous upscale outlets. There is an existing cinema complex at the center, which the company is planning to expand. The merchandising mix is being directed to attract an entertainment-oriented hotel and a few high-end restaurants.

Divaris is in the process of securing a funding source for the project through a private placement with prospective buyers, joint venture partners and financiers.