Mall Developer Puts Bookstores Front and Center

H igh-end retail properties and independent bookstores don't often occur in the same sentence unless by way of contrast, but in the view of at least one intrepid mall developer, the indie bookstore experience is central to the development of a vibrant retail site. CenterCal Properties LLC just opened Read Booksellers in its Blackhawk Plaza mall in Danville, Calif. Sales at the store, according to CenterCal CEO Fred Bruning, an admitted bibliophile, “are already exceeding our expectations, and we're seeing a lot of repeat business. You find in other retail properties similar to the ones we own that chain bookstores are the only option for shoppers. We want to open stores that are tailored to a niche community itself that covers a two-mile radius, single-location bookstores that are tied to a purpose rather than a name.”

CenterCal, with offices in El Segundo, Calif., and Tigard, Ore., owns retail malls in Utah, Oregon, California, and Idaho. In addition to the eight already acquired, the company is in negotiation to buy three more mall properties in the West. A lifetime Sierra Club member, Bruning stresses the importance of environmentally friendly design and resources used in planning CenterCal's malls. “The successful model for a mall cries out for a bookstore, and we hope to achieve that in our other locations,” he says.

Jean Paul Wardy, CenterCal's president, teamed up with Bruning in 2004 to form the company, a joint venture with the California State Teacher's Retirement System. Both men have held key positions in the retail development and acquisitions industry. “Fred and I both believe in the importance of books and reading, beginning with kids when they're young and are read to at bedtime. We're going to have a lot of events at Read for kids,” Wardy says. Read has devoted 25% of its 2,600 square feet to children's books and has a significant number of titles on art, photography, and interior design as well to meet the needs of the community.

Extensive research went into the decision to open Read. “The big chains have stopped expanding, and for the most part indies have as well,” says Wardy, who made it a priority for Read to become a member of ABA and hopes to attend the organization's winter institute in February. He is familiar with all of the indies in Southern California and spent time in most of them when he decided to open Read, studying book inventories and bookstore design and operations.

After John Evans and Alison Reid of Diesel Books in California decided they couldn't work with CentralCal to get Read up and running in Danville, Wardy ran an ad on the Northern California Independent Booksellers Association's Web site. Vicky Panzich and John Hamilton, who owned The Next Chapter for more than 20 years, contacted him and were hired to be the managers of Read. Operations manager Chris Defterios, who has since left the position, assisted them in opening the store.

“Jean Paul and Fred have both been wonderful,” says Panzich. “When they approached us about opening Read for them, what John and I liked was that they were both passionate about books—and candid about not knowing anything about the book business. They respected our knowledge from the start.” Wardy and Bruning provided whatever was necessary, from book carts to fixtures and displays, and were involved with every aspect of building a bookstore from the ground up. “They always took our advice,” Panzich continues, “and were eager to learn. The communication between us has been fantastic. Read has truly been a mutual endeavor.”

Because CenterCal's existing malls already have a bookstore presence, the next opportunity to open another branch of Read won't come until 2011, when The Rivers at Oregon City and Station Park in the Salt Lake City area are completed. With the Danville Read off to a good start, Bruning says it is “likely” that the two malls will include a new Read Booksellers.

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