Wheaton's Town Square struggles to fill retail vacancies

Not so long ago, Wheaton's Town Square enjoyed a mix of national chain stores and a full parking lot as an upscale shopping destination on the city's south side.

Mall ownership changed hands in 2015 when Chicago-based Tucker Development purchased the 203,000-square-foot property for nearly $57.3 million in a joint venture with Hutensky Capital Partners.

What a difference five years can make.

Town Square has suffered a retail exodus. Gap, Banana Republic, Charming Charlie, Express and, most recently, Victoria's Secret, all have closed. Starbucks, Frank Gironda Salon and other Town Square fixtures also moved to nearby shopping centers in Danada.

It's yet another example of a suburban mall struggling to adapt to the rise of online shopping and the decline of retail stalwarts. Now, the question is whether Town Square can reinvent itself.

"That center was the envy of many developers when it was first developed because it was so unique," said John Melaniphy, president of Chicago consulting firm Melaniphy & Associates.

Town Square opened in 1992 with a Prairie-style design. The open-air center notably lacked an anchor tenant and focused heavily on apparel.

Melaniphy expresses confidence in the owners, their experience and leasing contacts.

Tucker Development also owns a portion of Wheatland Marketplace, a Naperville shopping center where Amazon wants to open a grocery store. In Chicago, Tucker is redeveloping the site of a former Sears store at Milwaukee Avenue, Cicero Avenue and Irving Park Road.

"He's been involved in the industry for many years," Melaniphy said of the firm's CEO.

Tucker Development CEO Richard Tucker, Senior Vice President Teresa Connors and Hutensky Vice President Brad Miller did not return multiple requests for comment.

Wheaton officials say they're encouraged by renovations of Town Square. But officials also have raised concerns about its prospects, according to internal emails obtained by the Daily Herald through a public records request.

The city's economic development leaders meet periodically with mall ownership. One such meeting in February 2019 didn't allay staff concerns, emails show.

"We were VERY discouraged with them," Planning and Economic Development Director Jim Kozik wrote to a former city clerk. "They are giving themselves three years to re-tenant the center; they are actively looking for a large restaurant to provide the spark. They seem to have no urgency."

Remaining tenants say high rents also are driving away new business.

Cory Short, one of the owners of Red Mango, a frozen yogurt shop, said her rent payments have doubled since 2016.

"I just hope that we can get more business in here for the sake of everybody else so that people don't lose hope and lose their jobs," Short said.

Historically, Town Square had "very strong sales productivity," Melaniphy said. High visibility and enviable demographics still give the center an advantage.

The key is attracting more Internet-resistant tenants - "food and fashion and fitness and fun" - that entice shoppers to spend time at the center, Melaniphy said.

"We're seeing this all over the county," he said. "This isn't anything germane only to Wheaton."

Kozik said online speculation that owners want to tear down the center to make way for condos is just that: only rumors. He said the owners continue to make significant investments in the center, arranged in a walkable loop.

A new outdoor fireplace was installed in a redesigned central courtyard, and a new monument sign stands along Naperville Road.

"It's a difficult marketplace out there, so I think they're doing all they can," Kozik said. "Their interest is in having a vibrant center that's full of tenants."

But an organizer of a "Save Town Square" petition has reservations. It's generated more than 2,000 signatures.

"They did a nice job with the renovations," the Change.org petition states, "but what is the point with no shops to support or enjoy the center?"

The pending arrival of McAlister's Deli may not provide that "spark" for Town Square, but it will fill a 3,300-square-foot space. The chain recently secured a city permit to convert a former vitamin shop at Naperville Road and Blanchard Circle.

"The addition of McAlister's Deli at Town Square Wheaton represents our commitment to create a unique and dynamic destination for visitors to gather together and enjoy a day of shopping, dining and socializing," Hutensky's Miller said in a statement last week.

"We not only welcome McAlister's Deli to Town Square Wheaton and anticipate celebrating our newest restaurant's grand opening later this spring, but look forward to announcing the names of additional new retail brands along with food and beverage tenants in the months to come."