Kroger Breaks Ground on $74 Million Mall Redevelopment

by Nate Hunter

Hilton Head Island, S.C. — Shelter Cove Towne Centre will include an 87,588-square-foot Kroger.

Hilton Head Island, S.C. — Construction has started on the Shelter Cove Towne Centre, a 42-acre mixed-use development on Hilton Head Island, including a massive new Kroger location. The $74 million project will be built in three phases.

The new Kroger will be the largest grocery store on Hilton Head Island at 87,588 square feet and will include an expanded selection of groceries, a Starbucks coffee kiosk, full-service Murray’s cheese shop, freshly prepared sushi, a walk-in beer cooler, a Growler station where customers can fill up jugs with draft beer, a wine expert, a drive-thru pharmacy, and an outdoor bicycle repair station.

The development is a joint venture between Kroger Real Estate and Blanchard & Calhoun Commercial, a development and real estate brokerage services company based in Augusta, Ga.

“We are very excited about the future and the successful opening of this amazing energy center for Hilton Head Island, which will generate millions in revenue for retailers, restaurateurs, hotels, tourist attractions, partners and the city,” says Michael Schlotman, chief operating officer of Cincinnati-based The Kroger Co. Schlotman adds the development will also create a vital hub for people to congregate.

Phase I will include the redevelopment of an existing shopping center into an upscale, outdoor mall spanning 290,000 square feet of retail, restaurant space and the first Kroger Marketplace on Hilton Head Island. The second phase will include a five-acre park that will connect with the existing 12-mile trail system on Hilton Head Island. Phase three will add 210 waterfront apartments.

The Hilton Head Island Town Council approved the zoning for the center in late 2012. With anchor tenants Belk and Kroger in place, the joint venture is pursuing additional commitments from retail, restaurant and service tenants.

The new town center is expected to create 450 jobs and generate $5.1 million in annual sales tax revenue.

— Liz Burlingame

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