CARY - Waverly Place was supposed to receive a total makeover by now. But in these cash-strapped times, a simple facelift will have to do.

The owner of the 23-year-old shopping center is starting on a scaled-down renovation, two years after plans for a $180 million transformation of the space were foiled by the credit crunch.

RP Realty Partners of Beverly Hills, Calif., the private equity firm that bought the property in 2008, last week unveiled new plans for the stagnant shopping center at the busy intersection of Kildaire Farm and Tryon roads.

RP Realty plans to redo building facades, construct a central promenade and lease out the remaining 170,000 square feet of shops, nixing plans to demolish the building and start over.

"The best thing is for us to work with what we have and focus on making the promenade a great place for Cary families to play, shop and dine," said Jenn Olevitch, director of leasing for RP Realty.

The 50,000-square-foot promenade on the central grounds will feature waterfalls, edge pools, fire pits, a playground, space for a stage and a large lawn. The Whole Foods grocery is staying. But the Rite Aid may switch to a different building at the center or be replaced by a different drug store, Olevitch said.

RP Realty wants to finish the roughly $15 million renovation by April. New tenants may move in at the beginning of next year. But there aren't any signed leases yet, according to Olevitch.

A new plan

The company has had to rework the original redevelopment plans, created by Durham developer Todd Zapolski, a partner in the group that sold the property to RP Realty.

Zapolski's mixed-use project had no trouble getting lenders on board at first. Companies were expanding, consumers were traveling and buying homes.

Times have changed.

Plans for a 120-room hotel have been cancelled. The same went for a proposal to add 200 homes.

There won't be 216,000 square feet of offices, either. Olevitch said a dentist or a chiropractor's office could fit in with the retail space.

"I thought the original plans with a lot of residential was a little much for that part of town," Mayor Harold Weinbrecht said. "In this economy, what they're proposing makes sense."

Those old plans, drawn up in early 2007, were to be completed in one phase.

But it fizzled as a core of prospective tenants such as Crescent Bank bailed and as lenders tightened.

Zapolski, who lost money on the deal, said he's just glad somebody's working on the site.

"The market is still tough, but it's a great site," he said. "We hope they can go forward with something that will make the place vibrant again."

RP Realty paid at least $17.3 million for all but two outparcels on the 27-acre property, according to Wake County deeds.

Zapolski and his former business partner, Leslie Rudd of Napa, Calif., paid about $19.3 million for the 82,386-square-foot shopping center and a few adjoining tracts in January 2005.

RP Realty bought Waverly in an all-cash deal cash from a $100 million equity fund aimed at retail properties.

"This piece of real estate is at a very important intersection," said Greg Sanchez, president of Tri Properties, which is managing the construction. "There is a real need for this to be revitalized."

Demolishing and starting over may have been part of the initial plan. But it doesn't make much sense anymore, Sanchez said.

"Very few new projects are being started because there's so much space available," he said. "There are opportunities in renovations right now, and this is a visionary renovation."

About 8.1 percent of the Triangle's retail space was empty at the end of June, up from 6.5 percent when the bigger makeover was in play.

Ups-and-downs

Waverly Place has faced criticism from residents and business owners for having a less-than-accessible layout.

Remaining largely vacant hasn't helped, either.

"People have called it an eyesore," Weinbrecht said.

But tenants had trouble maintaining business at Waverly.

The shopping center is below road-level, and signage can be difficult to spot.

"When I came here in [1996], people were saying it's kind of hidden and it doesn't work," said Jeff Ulma, the town's planning director. "The struggle with Waverly is its visibility and accessibility."

The town approved the $180 million redevelopment site plans years ago. The leaner version has been a little disappointing, Ulma said.

"Everyone would love to go for the gusto," he said.

"We'd all love to see more but we don't own the checkbook that takes care of those things."

The new plans will make small changes in the elevation of the shopping center's multiple buildings and redo the façade, Sanchez said.

Attracting the right stores may be all that Waverly Place needs, Ulma said.

"If [a store] gets some draw from you, it doesn't matter where it is," he said.

Olevitch added: "There have been so many false starts ... and we understand that there's hesitation from people who have been waiting a long time. But something is happening there."