Festival Bay plans $70M artists' marketplace
Festival Bay, already Orlando's most unusual mall, is about to become something unique to Central Florida.
The International Drive shopping complex will transform into Artegon Orlando, a $70 million bazaar, farmers market and beer hall. A grand opening is expected in November.
The interior will be gutted and made over into a market reminiscent of Istanbul's Grand Bazaar and New York City's Chelsea Market, said Nick King, a principal with Paragon Outlet Partners, which is redeveloping the property.
About 200 artisans will create and sell their work in kiosks, stands and stores, Paragon said. Items for sale will range from jams to blown glass. There will be some traditional retail goods such as clothing as well.
"This is not going to be solely an artisan market, but we feel that artisans in there creating their product or their artwork and selling it gives the market a very real and unique feel," King said.
The 1.1-million-square-foot mall's anchor stores, which include Bass Pro Shop, Ron Jon Surf Shop and Putting Edge, will remain. A 45,000-square-foot indoor farmers market, open seven days a week, will take the space where Steve & Barry's University Sportswear once was.
There also will be a new German-themed restaurant and beer hall with on-site brewing. It will be opened by Berghoff Catering and Restaurant Group, a century-old Chicago institution.
Radbourne Skatepark, slated to open in the old Vans skating rink space this month, has run into some delays and should open later this year, King said.
The new concept for Festival Bay might be difficult to pull off, said Ray Hayhurst, senior director of retail-capital markets for Cushman & Wakefield in Orlando. It could be especially difficult for a farmers market to attract much business in a tourist area such as I-Drive. Festival Bay started a farmers market a few years ago, but it didn't last long.
Still, Hayhurst said, "It's interesting to see they're thinking outside the box from a traditional retail center. I think they need to do that."
Paragon said it already has seen a lot of interest from local artists. Steve Sless, a Paragon leasing partner, said the company is working with experts including a USDA architect who designs farmers markets. Sless said it can attract many locals, along with tourists staying in time shares and hotels that have kitchens.
"A lot of those people do not go out every single night," he said. "They do cook meals."
Artegon Orlando's hours have not been set but likely will be different from a traditional mall, Paragon said.
The makeover will bring an end to many of the mall's signature features.
The pond and fountains will be removed, as will the colorful mosaic poles spelling out Festival Bay's name. The pastel facades also will be gone, replaced by a more industrial look with glass, concrete and exposed steel.
This is new territory for Paragon, made up of executives who previously worked for outlet operator Prime Retail. In 2008 that group revamped an aging group of outlet strip centers across the street into a Mediterranean-style open-air plaza now called Orlando Premium Outlets — International Drive.
At least 12 million people annually visited that center by the time it was sold in 2010, King said. Still, surrounding properties, including Festival Bay, have had a tough time capitalizing on that traffic.
Paragon is part of the Lightstone Group, Prime Retail's former owner, which bought Festival Bay in 2010 for $20.4 million.
Festival Bay is one of several struggling malls to come under new ownership, including Orlando Fashion Square and West Oaks Mall in Ocoee.
Orlando Fashion Square recently posted renderings of a redeveloped mall with an Aloft hotel, but owner UP Development said through a spokesman plans depicted in those pictures are not set in stone. No deal has been reached with Aloft, which already plans a hotel in nearby downtown Orlando.