The University of Mary Washington's recent foray into retail operations may be new for Fredericksburg, but it's part of a common trend for colleges nationwide.
Colleges in Virginia and throughout the U.S. have often bought and developed retail centers near their campuses to enhance the student experience.
"It's pretty prevalent," said Rick Hurley, UMW's acting president.
Last month, UMW announced that its private real estate foundation had purchased the Park & Shop shopping center in Fredericksburg for $18.75 million. The 21-acre property on U.S. 1 across from the Fredericksburg campus increases acreage by about a third.
UMW expects the foundation to spend another $60 million to $100 million developing a pedestrian-friendly residential and retail project over the next 10 years. None of the money will come from the state or from student fees.
Park & Shop was built in 1963 and has 31 spaces for tenants. It has lately lost some allure, with seven vacant storefronts accounting for about 56,000 square feet of unused space.
Many U.S. colleges have followed a similar path of buying up land on the edge of campus that was falling into disrepair, said Bob Hassmiller, chief executive of the Charlottesville-based National Association of College Auxiliary Services.
Hassmiller pointed to Washington University in St. Louis and Temple University in Philadelphia as two schools that have done this. Often, he said, that land is unattractive to others but perfect for universities looking to expand.
Hassmiller said the trend toward colleges owning retail operations has been in place for the past 15 to 20 years. He noted that athletic arenas also have become more commercial, citing the University of Virginia's John Paul Jones Arena as an example.
College bookstores also are increasingly getting involved with retail operations by selling computers, jewelry and other merchandise to students. Charlie Schmidt, spokesman for the National Association of College Stores, said this trend is partly due to a decline in textbook sales.
Before UMW's real estate foundation bought Park & Shop, Hurley toured four other Virginia colleges that have made the jump into retail development in recent years: Virginia Commonwealth, Longwood, Old Dominion and Christopher Newport universities.
Hurley said those schools also bought land close to campus and developed retail establishments that cater to students. Student housing also was incorporated into the mix.
Hurley pointed out that student-focused retailers spring up naturally in college towns such as Charlottesville. But in non-college towns, he said, universities sometimes have to take the lead in bringing retail that students want.
Hurley acknowledged the potential problems with colleges entering the retail arena. It diverts attention from the university's core mission, instructing students.
"You have to weigh that carefully," Hurley said. "There should be good reason why you do it."
But he also pointed out that the project gives UMW flexibility over the long term by expanding the landlocked campus. Decades down the road, Hurley said, once the retail side has repaid the investment, UMW could decide to use the property for academic or student residence hall expansion.
But that's a debate for a later time. For now, the university has been taking feedback from students and community members about what they'd like to see at Park & Shop. P.F. Chang's China Bistro and a Barnes & Nobles bookstore have come up high on the wish list.
a mixed-use 'village'
UMW plans to eventually demolish the strip shopping center and replace it with a mixed-use "village" of student, staff and faculty housing; improved retail offerings; office space; and a performing arts center and movie theater.
Jeffersonian brick architecture would blend in with the rest of campus. A brick pedestrian walkway over U.S. 1 would connect it to UMW. A parking garage would accompany the apartments, which officials say would reduce the city's parking problems.
The project is still an evolving plan. The first phase of construction will bring apartments for about 400 upperclassmen. Hurley said there will likely be a retail operation on the ground level of the apartments. The condos could be for UMW and MediCorp staff and city workers; the plan is to make them affordable.
The deal doesn't include nearby stores, such as the Clean Machine car wash, Parthenon restaurant, Twi-Lite Motel and Country Cookin' restaurant.
The university has been meeting with current tenants. The Giant food store recently signed a five-year lease. UMW could develop a new space in the center for a refurbished Giant.
Hurley said UMW paid a premium price to get the shopping center. But ultimately he sees the investment as an important one for the growing university.
"We had to take the long-term view," he said.
Bill Freehling: 540/374-5405
Email: bfreehling@freelancestar.com