Spartanburg Herald Journal

Westward, ho!

Work could begin by the end of the summer on a 40,000 square foot town center-style retail complex north of WestGate Mall.

The development, featuring a courtyard and fountain, would be the latest addition to the Westgate Pointe complex that includes two hotels, a pair of restaurants, a convention center and a movie theater.

Development company Pinnacle Hospitality has had discussions with Marble Slab Creamery, a coffee shop and several clothiers, company real estate manager Phil Simmons said.

No lease agreements have yet been reached.

"You've got to have the product ready before you can go out and market it," Sinclair said.

The new retail site would be the latest in a cluster of developments near the intersection of Highway 29 and I-26.

The area has seen a spate of development in recent years including the Dorman Centre and, among others, a new Lowe's home improvement and Best Buy stores.

More development is planned in the area, including a Costco Wholesale outlet and Olive Garden restaurant.

More to come?

Depending on how the new retail Westgate Pointe development does, more retail could follow in the complex, said Pinnacle president Sam Shanbhag.

Sinclair said Pinnacle would try to attract new retail stores that would complement WestGate Mall shops and would not try to pull shops out of the mall.

Although he had not spoken with Shanbhag about the development, WestGate Mall general manager Ronald Thomas said the mall had long expected more development at Westgate Pointe and welcomed it.

"It would be exactly the kind of synergy we've been looking for," Thomas said. "(Sambhag) typically does a quality development."

He said growth in the area was making the west side a prime retail spot.

"Now you've got national tenants that are looking at Spartanburg just as quickly as they look at Greenville," Thomas said.

Thomas added that WestGate Mall was doing well and would have only a two percent vacancy rate by year's end.

Real estate agents said retail space in the area has been at a premium.

"There's just not much product out there for people to lease," said Ben Hines of Spencer Hines Properties.

Some, however, questioned whether WestGate point is well positioned to attract retail business. While the development fronts I-26, it is set back from West Blackstock Road.

Hines said he initially doubted whether the popular City Range restaurant -- located beside Westgate Pointe -- would attract as much traffic as it has.

"I thought it would be very difficult to gross sales-wise," Hines said.

Pinnacle also hopes to break ground on a new hotel in the area within a year.

Shanbhag said Pinnacle has had discussions with three hotel chains for a 125- to 150-room select service hotel. The hotel would feature a restaurant and be marketed to clients who want more luxuries than the typical hotel.

"We don't want to compete with the Marriott," Shanbhag said.

Shanbhag said the two other hotels at Westgate Pointe are doing brisk business.

The Holiday Inn Express Hotel and Suites has had an occupancy rate of between 78 percent and 82 percent in 2006, while the Hampton Inn & Suites has had an occupancy rate of 65 percent to 69 percent, according to Pinnacle.

Alexander Morrison can be reached at 562-7270 or alex.morrison@shj.com.