Montgomery development news

[thoraudio]

I know, Wal-mart = the devil... yadayadayada.

The Ann St. area (along with High St.) has been a low - moderate income area for a while, being bypassed by retail by growth in the 50's-60's. South of I-85 Ann Street turns into Zelda Rd, which is the closest thing Montgomery has to a dense, property scarce, development area. Zelda Rd. has several shops, restaurants, etc... punctuated by a new Publix and Starbucks.

The Wal-mart is going on the Ann St side, but is further establishing this area as Montgomery's 'mid-town', with continued development thats not in the core, but not in the far reaches either.

This area will also have Montgomery's worst traffic by far

Values surge on Ann Street

By David Irvin
Montgomery Advertiser

Properties surrounding a 45-acre retail project on Ann Street are ballooning in value as developers work to finish a brand new Wal-Mart Supercenter and other stores by late summer.

In addition to the world's largest retailer, the Midtown Plaza will have 100,000 square feet of retail space, with retailers like Ross Dress for Less, Office Depot and Dollar Tree. Most of the buildings are up but the parking lots haven't been paved.

Because of the traffic the plaza is expected to generate, some adjacent homeowners are trying to cash in by luring commercial developers to pay exorbitant prices for their homes.

However, just how much business is likely to flow over from the plaza to the other side of Ann Street is not certain, and how much owners can make is up for debate.

"It's almost impossible to invest over $30 million in an area of a community like this without getting a benefit for the community," said David McClinton, senior vice president of development for McClinton and Co., which is developing Midtown Plaza.

According to other developers in the area, properties that were selling for $40,000 two years ago are now selling at more than $160,000. Depending on the lot, it could go for between $10 and $20 per square foot on Ann Street.

"The ones that are still there, they are holding out for top dollar, and it remains to be seen if they are going to get it," said Bill Palmer, owner and president of the Palmer Companies.

Some homeowners may be aiming too high.

"At one time, there was a half acre that a guy was asking $1.5 million for, and that to me is unrealistic," said Stephen Saunders, the CEO and owner of Saunders Realty. "I think you will see one or two spillovers, but I don't think it is going to be as much as what you want to see."

Saunders said McClinton and Co. is best-positioned to land any national retailers or restaurants shopping for space. However, McClinton said 98 percent of its property has been leased, which means any additional retailers will have to locate somewhere else.

Some of the homes adjacent to the plaza have sold two or three times since 2004 as opportunistic "flippers" tried to realize quick gains on the project. Palmer's company is marketing an old home on the corner of Ann and Locust streets, and "we've got some serious interest in that property," he said.

Palmer anticipates all the homes still on Ann Street across from the development will eventually be replaced by businesses. Popeye's Chicken has moved into the block. Homes deeper in the neighborhood probably won't appreciate so sharply, he said, although long-term development should lead to general appreciation in those neighborhoods.

The plaza project is on pace to be finished by mid-October, though the Wal-Mart is set to open in late summer. To facilitate more traffic, lane expansions on Ann Street have occurred and additional expansions are planned as well as traffic lights in key intersections.

For some residents, it's just nice to have the development so close.

"I guess it doesn't really bother me, 'cause it will be easier to go to the store," said Misty Merrill, who has lived two years across from the Midtown Plaza site on Ann Street. "It's already a busy street, you know."

The Wal-Mart Supercenter is expected to open with 650 to 700 employees.