At Home on Hilton Head Island

Shelter Cove Towne Centre will bring a first-to-market Kroger Marketplace and a fully redeveloped shopping experience

Residents of tony Hilton Head Island, S.C., are getting the one thing they don’t currently have: a Kroger Marketplace, situated in the sprawling 42-acre mixed-use project under development by Kroger Real Estate and Blanchard & Calhoun Commercial.

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The joint-venture partners broke ground on the $74-million, three-phase project in April; upon completion, phase one will include the redevelopment of an existing shopping mall into an upscale walking village with 290,000 sq. ft. of retail, restaurant space and, of course, the first Kroger Marketplace on Hilton Head Island.

The second phase will incorporate a five-acre park that connects with an existing 12-mile trail system. Phase three will add 210 waterfront apartments.

Co-anchoring the development is Belk department store, which has remained open during the redevelopment, along with co-tenants GNC, Regis Salons, and Jos. A. Bank. The partnership is in talks with retailers, restaurants and service tenants to join the current lineup of offerings.

The new Kroger is generating a flurry of press – at 87,588 sq. ft., it will be the largest grocery store on Hilton Head Island, and one of the biggest in the state. Some of its amenities and services include a Starbucks coffee kiosk, full-service Murray’s cheese shop, bistro with indoor and outdoor seating, an outdoor seasonal selling area and bike repair stations on the sidewalk.

“Kroger is particularly excited about coming to Hilton Head Island,” said Mike Schlotman, CFO, Kroger Co. “Primarily because we see so much opportunity.”

Schlotman cited the millions of dollars being spent on renovations and improvements on Hilton Head Island, including Westin hotel’s $30 million renovation, Omni’s $20 million redo and Sonesta’s upcoming $30 million injection in its property. “This represents a significant investment in this thriving community,” Schlotman said.

“We see opportunity to anchor a project that will set the pace for high-quality development for the future of this beautiful island.”

The partnership between Kroger and co-developer Blanchard & Calhoun Commercial has proved powerful. According to Matt Mills, senior VP, Blanchard & Calhoun, teaming with Kroger will allow Shelter Cove Towne Centre to “impact the Island at a level it has never experienced before. As we began working with the community, the town leaders and the development team that will bring this center to life, we saw the chance to create something very special for Hilton Head Island,” said Mills.

Described as a true lifestyle center, Shelter Cove Towne Center will feature an “Island vibe” with daily services, upscale boutiques, notable restaurants and high-quality merchants.

A waterfront public park will serve as a gathering place for townspeople and tourists, offering walking trails, event space and expansive views of Broad Creek.

“The Shelter Cove Towne Centre will be a center for this community,” said Mills. “It will represent and complement our Island well.”

For leasing information, contact: Chris Senn at 706-284-6347, or csenn@bccommercial.com.


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