Retail developer fills upscale malls

"They know how to bring in the tenants," said Phil Frame, a spokesman for Macomb County, Mich., where the Mall at Partridge Creek is under construction. "We think it will draw people here for sure."

A competing mall already exists in that county, the fastest-growing in Michigan with a population of 836,000. "This is going to be seen as a little more upscale mall and complementary to the other one," he said.

Taubman faces a similar situation in Salt Lake City, with The Gateway just three blocks west of Main Street. Company Executive Vice President William S. Taubman told the Deseret Morning News editorial board last year that he believes there is room for both.

"We think we can provide a unique and different experience, an experience that will be far more dramatic than what exists at the suburban malls today," he said. The Gateway will continue to appeal to a younger crowd, he said, while the new Main Street will attract the shopper between the ages of 25 to 40.

Taubman bills its retail space in regional malls across the country as the most productive in the nation, with sales last year averaging $503 per square foot. According to an International Council of Shopping Centers sampling, the strongest regional malls across the country average $392 per square foot.

"We've now experienced strong sales performance at our centers for over three years," company President and Chief Executive Officer Robert S. Taubman said when he announced second-quarter earnings in July. "Clearly, consumers are continuing to favor our regional malls."

Taubman in 2005 had net income of $44.1 million, compared with a loss of $5 million in 2004, but the figure included a $52.8 million gain on property sales. Consolidated revenue totaled $473.4 million, and unconsolidated joint-venture revenue was $297.3 million.

In the second quarter ended June 30, the company reported net income of $7.8 million, up from $1.6 million in the year-earlier quarter. Revenues were $139.3 million for consolidated businesses and $58.3 million for unconsolidated joint ventures.

Taubman Centers Inc. stock rose 38 cents Tuesday to close at $45.15. During the past year, the price has ranged from $28.15 to $44.92.

Last year, Taubman signed an agreement with gaming and entertainment giant MGM Mirage on a $7 billion mixed-use development in the heart of Las Vegas, including 500,000 square feet of luxury shopping.

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Contributing: Brice Wallace

E-mail: romboy@desnews.com