$40M redevelopment of Wilmington's Galleria Shoppes underway

After nearly four decades, Wilmington's Galleria Shoppes is nothing but a memory.

Demolition of the 38,000-square-foot retail center near the Little Italy neighborhood wrapped up last month, leaving a vacant lot where shoppers once headed for fine jewelry, women's clothing and the latest hair fashions.

But the corner of Pennsylvania Avenue and North Grant Street will not remain empty very long.

In the coming days, workers with GG+A Construction are slated to begin digging a 30-foot-deep parking garage on the site – the foundation of a new $40 million, five-story structure that will house shops and luxury apartments topped by a rooftop swimming pool and patio.

Construction is expected start heading skyward by fall and wrap in late 2018.

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"This is going to be a beautiful project when we're finished," said property owner Angela Tsionas, the of Tsionas Management. "And our hope is this development helps encourage more growth on this side of Wilmington."

Plans now call for 166 residential units, including 91 one-bedroom and 75 two-bedroom apartments, along with 19,000 square feet of retail space on the ground floor. The parking garage will contain two below-ground levels with 246 spaces residents can access from Pennsylvania Avenue and another 68 above ground.

Named after its address, the future 2000 Pennsylvania Avenue is one of four major residential construction projects underway in Wilmington.

Buccini/Pollin Group is building a $75 million luxury apartment complex called Residences at Mid-Town Park that will add 200 apartments, 12,000 square feet of retail space and a 500-space parking garage on the block bounded by Ninth, Orange, Eighth and Shipley streets.

BPG also is slated to soon begin work on a $70 million project that will add four multi-story apartment buildings called Rockford Falls at the site of the former Bancroft Mills. The development will include 346 residential units.

Meanwhile, Louis Capano & Sons recently began work on a 68-unit multi-family apartment building on the Wilmington Riverfront, a four-story project slated to be followed by an eight-story structure with 135 apartments.

"The residential investment in the city right now is terrific and that shows the confidence people have in the future of our city," Mayor Mike Purzycki said. "It also brings a variety of demographics, from retirees to young people to professionals."

The owners of retail shops near 2000 Pennsylvania Avenue are hoping that influx of residents brings a new energy to the area between Little Italy and Trolley Square, a gateway to the city for many travelers coming from the north and one of the city's safest neighborhoods.

"I absolutely think it's going to bring new business for us," said Frank Pagliaro, owner of Franks Wine, an upscale liquor store across the street from the mixed-use development. "To me, a little dust and noise during construction will be worth it in the long run."

Chuck Cinaglia, owner of Boyd's Flowers, also on the north side of Pennsylvania Avenue, said he's anticipating a similar boost.

"People living there will be able to run over and grab what they want," he said. "Just that many more people seeing us should help our online orders."

Initially unveiled early last year, 2000 Pennsylvania Avenue is the first project Tsionas Management has undertaken in Wilmington. The company is best known for its redevelopment projects in Newark, where it has built at least eight mixed-use properties.

"I saw this part of Wilmington as already being a proven success between Trolley (Square) and Greenville," Tsionas said. "And we've found a lot of support from the city and the community."

Tsionas purchased the Galleria Shoppes in late 2015 from longtime owner James Stein, who created the shopping center at the former Diamon Ice and Coal company building.

At the time of the purchase, Galleria Shoppes housed Stein's Stuart Kingston Jewelers, Michael Christopher Salon & Day Spa, Santa Fe Mexican Grill, Morgan's of Delaware clothing shop, Empowered Yoga and several other businesses.

All of those companies moved out by early April. Santa Fe closed altogether but most found new locations nearby after reaching a financial settlement with Tsionas Management. 

Michael Christopher Salon and Empowered Yoga, for instance, both moved about 2 miles northwest to the Montchanin Corporate Center off Kennett Pike. Morgan's of Delaware relocated to Market Street, and Stuart Kingston headed to a temporary location in an office park off Mill Road on the banks of the Brandywine.

The owners of Stuart Kingston and Michael Christopher initially had hoped to move back once the new mixed-use development was finished. But both now say they have no plans of returning.

"My initial thought was based on the shock of being away from the location where my business had been for 30 years," salon owner Michael Hemphill said.

"But moving for two to three years and then trying to move back is almost impossible," he added. "And besides, all of our old customers came with us, and we've found a bunch of new clients where we are now."

Stuart Kingston, meanwhile, is planning to move to a permanent location in the Greenville Professional Building about 3 miles northwest of the former Galleria Shoppes early next month.

"It's difficult to invest in a new location and then turn around and move again in a two or three years," said Ed Stein, manager of the jewelry store and auction house. "Greenville is a great location for us that's where we plan to be for the immediate future."

Tsionas said she has been in talks with numerous restaurants, cafes and retailers interested in filling space at 2000 Pennsylvania Avenue, but no leases have been signed to date.

"There has been very strong interest, but we're trying to be careful and selective," she said.

The company also has not started signing leases with residential tenants. Instead, prospective residents are being added to a list and kept informed on the project's progress via email, Tsionas said.

A website listed on advertisements at the site takes visitors to a page that states only "Future home of something quite cool." A phone number on the same ads leads to a recording that asks callers to leave their names and contact information.

"We're still early in the project yet," Tsionas said.

Contact business reporter Scott Goss at (302) 324-2281, sgoss@delawareonline.com or on Twitter @ScottGossDel.