They once thrived but are now retail dead zones

Many have seen them. Driven or walked past them most days. Dotted across Hampton Roads are retail outlets and shopping centers in both heavily and lightly traveled parts of towns that seem to barely or never keep tenants.

Some sit idle, sometimes across from a more flourishing center, with few tenants. Others bear "for rent" signs, gutted parking lots and distressed storefronts.

We took a look at five "dead retail zones" that people in business and real estate say are lifeless for many reasons: the Midtown Shopping Center in Norfolk; the Victory West Shopping Center in Portsmouth; the Southgate Plaza Shopping Center in Chesapeake; White Marsh Plaza Shopping Center in Suffolk; and the location of the defunct Triple C Car Wash in Virginia Beach.

Jim Carroll, director of the Hampton Roads Chamber of Commerce's Small Business Development Center, said several things lead to the demise of a retail property.

"It's certainly not one predominant factor," he said. "It's a combination of things."

Those include a mix of stores, competition, reputation, loss of an anchor store, economy and even crime, he said.

Anne Crenshaw, president-elect of CREW Hampton Roads, a women's commercial real estate group, said oftentimes a retail complex becomes a victim of new development.

"What generally happens is you get a more affluent population and transportation corridor," she said. "The economic region goes down and everything suffers, including retail."

H. Blount Hunter, a retail consultant based in Norfolk, said too much traffic might be a bad thing because congestion makes it likely that some people will bypass or avoid a shopping complex.

Some landlords might also intentionally keep space open because it will help them execute a larger strategy for repositioning the property or changing the tenant mix, Blount said.

"Sometimes filling vacancies is just a matter of time," he said. "Not all vacancies are chronic vacancies."

Craig Cope, president of Hampton Roads Association for Commercial Real Estate and vice president of Liberty Property Trust, said many factors should be addressed when building a retail center and keeping it afloat.

"It starts with the big picture," Cope said, citing affordable housing and retail such as grocery stores. "And works its way down." Learn more about five dead zones on Page 5. Many have seen them. Driven or walked past them most days. Dotted across Hampton Roads are retail outlets and shopping centers in both heavily and low-traveled parts of towns that seem to barely or never hold their tenants.

Some sit idle, sometimes across from a more flourishing center, with few tenants. Others bear "for rent" signs, gutted parking lots and distressed storefronts.

We took a look at five "dead retail zones" that people in business and real estate say are lifeless for many reasons: the Midtown Shopping Center in Norfolk; the Victory West Shopping Center in Portsmouth; the Southgate Plaza Shopping Center in Chesapeake; White Marsh Plaza Shopping Center in Suffolk; and the location of the defunct Triple Car Wash in Virginia Beach.

Some of those reasons are money, politics, crime, reputation. The list goes on.

Craig Cope, president of Hampton Roads Association for Commercial Real Estate, said many factors should be addressed when building a retail center and hoping to keep it afloat.

Among them: Is the center near affordable housing? Is there a mixed use of housing close by? Are there local amenities, such as public transportation, a gym and grocery store?

"It starts with the big picture and works its way down," said Cope, who's also vice president at Liberty Property Trust, a large national property owner and manager whose local office is based in Virginia Beach.

Jim Carroll, director of the Hampton Roads Chamber of Commerce's Small Business Development Center, said several things lead to the demise of a retail property.

"It's certainly not one predomin ant factor," he said. "It's a combination of things."

Those include a mix of stores, competition, reputation, loss of an anchor store, economy and even crime, he said.

Anne Crenshaw, president-elect of CREW Hampton Roads, a women's commercial real estate group, said oftentimes a retail complex becomes a victim of new development.

"What generally happens is you get a more affluent population and transportation corridor," she said. "The economic region goes down and everything suffers, including retail."

1. White Marsh Plaza Shopping Center, Suffolk

For a few years, LC Harden Sr. was the only tenant in the White Marsh Plaza Shopping Center in Suffolk. His barber shop, Different Strokes, sits off to the side of the center, down from a restaurant and church. He’s been there for 10 years.

The lack of foot traffic has definitely affected business, said Harden, who described the center as deserted and lonely.

“It looks like nothing’s here. … There’s no action,” he said. “A lot of people would say, 'I didn’t even know you were here.’”

Less than a decade ago, the White Marsh center used to buzz with a laundromat, gift shop, restaurant and Food Lion. Now it sits nearly lifeless, with abandoned storefronts and a distressed parking lot.

Last year, the 7.09-acre property was assessed at a total of $877,400 – $549,100 for the building and $328,300 for the land, according to city records.

There are seven tenants in the center, which is owned by Big Bear LLC. But a couple of those stores are empty or in transition.

Michael Shapiro, director at GVA Advantis, the plaza’s leasing agent, said business decreased when the Food Lion moved to another part of town about six years ago.

“Take the anchor tenant out and the other businesses can’t afford to be there because no one is shopping,” Shapiro said.

Food Lion will continue to pay rent on its 25,000-square-foot space until September, Shapiro said, adding that he doesn’t even have a key to show the spot to potential tenants.

“I have to call the Food Lion representative,” he said. “It makes it very difficult to get someone in the space.”

Nasir Awadallah hopes to pick up where the Food Lion left off. He is preparing to open a grocery store and deli in August. Awadallah, who owns two groceries in Hampton and Virginia Beach, said the neighborhood badly needs a food store.

“Hopefully, with the store being here, we can generate more business and revive the shopping center,” he said.

2.  Victory West Shopping Center, Portsmouth

Sonny Painter, owner of Westgate Barber Shop, has run his business for 28 years in the Victory West Shopping Center. The longest-running tenant said the shopping center does well.

He admitted, though, that more business would do wonders.

“If he could get a small store that could get in here, it would help a lot,” Painter said.

The Victory West Shopping Center off Airline Boulevard was a booming retail hub more than 40 years ago. As anchor stores such as department store Zayre and pharmacy Revco left, other businesses followed.

Through the years, the center has succumbed to violence and panhandling, residents say. A few blocks down sits the Airline Marketplace, a more vibrant shopping center that features a Food Lion and several other businesses.

The Victory West Shopping Center, which consists of three parcels totaling 17.3 acres, now has six vacancies out of 26 storefronts. It’s owned by ZWay II LLC and was assessed at $4.5 million last year, said Mike Zarpas, the owner and developer.

Ruby Kesler, a retiree living in the Simondale neighborhood , has been shopping in the center since 1970. In a different era, the center had much more traffic, she recalled.

“I don’t guess the little corridor has done badly through the years,” she said of the center. “They’ve got a lot of small stores, but they don’t seem to stay that long.”

Zarpas, president of Global Real Estate Investment, a redeveloper of the property, said the center is “one of the bright spots in my portfolio.” He bought all of the parcels since 2003.

He said gas prices and the economy have affected his tenants, but he maintains that he’s done a good job with it. Zarpas, who specializes in revitalizing older retail hubs, said he plans to attract family-entertainment businesses, including a high performance automobile clubhouse for antique and sports cars.

One of the things that attracted Zarpas to the property was its interstate access. It’s a short distance from Interstate 264. Still, Zarpas admitted that he’s working hard to breathe life into the center.

“When we bought the property, it was left for dead,” he said. “We take the extra risks and challenges and give the neighborhood what they deserve.”

3. Southgate Plaza Shopping Center, Chesapeake

Antonio Nortesano’s restaurant, Frank’s Pizza, is one of two tenants in the Southgate Plaza Shopping Center. There also used to be a barbershop, a bank, a dollar store and even a bingo business .

In 15 years, Nortesano has seen them come and go.

“The shopping center went down and down and down,” he said, glancing at vacant storefronts.

The parcel, off of Bainbridge Boulevard, resembles a ghost town. The parking lot is filled with potholes. “For Lease” signs hang in windows

Leasing agent William Cairns said the local civic league has prevented him from recruiting businesses to the location. Members blocked several permits that would have brought strong retailers such as Wal-Mart and Rally’s to his center, he said.

“The civic league has stopped that area from growing,” said Cairns, who said he bought the center about 2½ years ago.

Gerald Johnson, president of the South Norfolk Civic League, offered several other reasons the center is struggling. Money is one of them.

“I don’t know that the owner has enough financial backing to upgrade the shopping center to attract businesses,” Johnson said. “I think it all comes down to the finances.”

Johnson said the league stopped a cell tower application because it felt it was out of place for that location. And Wal-Mart and Food Lion representatives wanted Cairns to make improvements to the center, but he didn’t, Johnson said.

The 13.248-acre property is assessed at about $1.4 million , according to city records.

Some still see potential in the property. Robin Barry, owner of Bill’s Flea Market, the former Virginia Beach landmark, plans to move her business to the center in July. The flea market was destroyed by fire in March.

And Tom Hollowell plans to open a bistro and catering business in the center next month. He maintains that the neighborhood needs it.

“I’m looking to bring business back up in that area,” he said. “We have a lot of potential.”

4. Midtown Shopping Center, Norfolk

Before Southern Shopping Center was hip in the 1950s, and prior to sometimes trendy Janaf Shopping Center, there was the Midtown Shopping Cent er.

At the intersection of Granby Street and East Little Creek Road, the retail hub was a pivotal place of Norfolk business during the 1940s.

“We used to be the Times Square of the South,” said 78-year-old Nellie Francis, a 33-year Wards Corner resident and manager of the center’s Sarah’s Hallmark, one of a handful of stores left.

The center was eclipsed by other retail centers such as Southern Shopping Center and The Gallery at Military Circle, previously Military Circle Mall.

Midtown Shopping Center has struggled to attract tenants. It has several vacancies in contrast to the more vibrant shopping center across the street.

For 61 years, Midtown Development Corp. has owned the Midtown Shopping Center. The 4.6-acre property was assessed at $7.1 million last year, according to city records.

One of the center’s most popular tenants was Uncle Louie’s Restaurant. Famous for its savory Reuben sandwiches and seasoned egg salads, Uncle Louie’s was the center of civic, leisure and business activities for 21 years.

The eatery gave birth to the community group Wards Corner Partnership and hosted many political shindigs and other parties. The restaurant closed abruptly in 2005.

Three years later, that space and several others in the shopping center remain empty.

Larry Hecht, the center’s retail leasing agent at Harvey Lindsay Commercial Real Estate in Norfolk, said that although the building is older and requires work and a substantial financial investment, he has received calls from prospective tenants.

Hecht said he is waiting for the right people to come along. As a Norfolk native, he’s hoping for a turnaround.

“There’s still a lot of traffic that funnels through Granby Street and Little Creek Road,” Hecht said. “There’s money to be made there.”

5. Former Triple C Car Wash, Virginia Beach

Birdneck Road is traveled by some of the wealthiest people in the city and known as a gateway to the resort area. It’s also loaded with stagnant commercial propertie s .

The intersection of Virginia Beach Boulevard and Birdneck Road has one of them. It’s blotched with an old mark of the past: Triple C Car Wash.

Only a few months ago, the car wash and detailing business worked wonders on many area rides. It closed in February.

The property is different in some ways from other locations that have aged badly and have multiple store fronts. In the 1960s, it housed a used car lot and in the 1970s a gas station, said Kitchie Murphy, a beneficiary of the trust that now owns the property.

Tracy McIntyre, who ran the detailing business for six years, said his business closed because of high rent. Now signs that read “No Trespassing” and “Keep Out” adorn the dirty windows. The property sits idly while traffic zooms by and planes fly overhead.

McIntyre reminisced as he held up a gray long-sleeved sweater emblazoned with his old company name. “It makes me think about where we came from,” he said.

He recalls spiffing up cars for high-profile clients, such as rapper Pharrell Williams and singer Chauncey Black.

The three-quarters of an acre, owned for 84 years by the John Wesley Murphy Trust or family members, is assessed at $595,598.

Patricia Berson, co-trustee for the Murphy Trust, wouldn’t go into detail but said the trust is in negotiations related to the property.

“We’ve had a lot of interest in that piece of property ,” she said.

 Jennifer Jiggetts, (757) 446-2033, Jennifer.Jiggetts@pilotonline.com