Triangle version of Chinatown taking shape in Morrisville

dbracken@newsobserver.comSeptember 13, 2013 

Only about 30percent of the Prime Outlets mall’s retail space was occupied in February. Plans call for an Asian grocery store and a Chinese cultural center, along with retail shops and restaurants, to fill the space.

JOHN ROTTET — jrottet@newsobserver.com

The plan to convert a largely empty Morrisville mall into the Triangle’s version of Chinatown appears to be coming to fruition.

A deep-pocketed investment group that includes investors from the U.S., Hong Kong and mainland China has acquired the Prime Outlets mall near Raleigh-Durham International Airport and expects to unveil detailed plans for the property early next month.

Those plans will be similar to the $130million project first presented in early 2012, said Lian Xie, president of the Carolina China Council, who has been working on the project for more than two years. “It’s pretty much the same vision,” he said.

Earlier plans called for the mall to be converted into a structure with distinctive Chinese architecture that would make it an instant landmark for those flying into the region. The retail space is to be anchored by an Asian grocery store and a Chinese cultural center, along with retail shops and fine-dining restaurants.

“We want to have a high-end place – modern, also with some traditional flavor – for Chinese-related shops and restaurants and cultural activities for people to go and visit and have fun,” Xie said.

There also are plans for a hotel and conference center to eventually be built on the 24-acre property.

Xie said the first phase will involve renovating the 192,000-square-foot mall. That work is expected to begin later this year, following an official ribbon-cutting Oct. 6.

UNC lease

The mall’s conversion to Chinatown is an unlikely turn for Prime Outlets, which, when it opened in the early 1980s, was among the first centers to offer goods at below-retail prices. But the property, despite its central location just off Interstate 40, has struggled in recent years.

Only about 30 percent of the mall’s retail space was occupied in February, according to Karnes Research.

The new owners have leased about 40,000 square feet to UNC Health Care, which beginning Oct. 1 will use the space to train staff on its new electronic medical records system. The restaurants still operating in the mall’s food court are expected to remain open in the near-term while other sections are renovated.

The new owners appear to have plenty of money. The investment group paid $12million for the mall in June, according to Wake County property records. That price is steep, considering the mall is generating little income and the seller paid just $6.2million for the property in 2006.

Funding the deal

The money for the Chinatown project is coming from two main groups, Xie said.

One is led by Hoi Sang Yeung, a Florida businessman whose International Restaurant Management Group operates more than 200 restaurants in 29 states and seven countries, according to its website. The group has developed such brands as Kelly’s Cajun Grill, Yeung’s Lotus Express, Suki Hana, Chicken Connection and Tango Grill.

Yeung, who Xie said has restaurant partnerships in the Triangle, already has created a limited liability corporation in Florida with the name NC CHINATOWN.

The other investment group is led by Fanny Cheuk, a Hong Kong businesswoman who once worked for IBM in the Triangle, Xie said. Cheuk is a founder of Intexact Group, a conglomerate with experience in property development and management.

“I know the Hong Kong group is planning to open some up high-end restaurants here,” Xie said.

He said the new owners already have raised enough capital to complete the renovations of the mall. The group likely will raise additional funds to finance the hotel and conference center construction, Xie said.

Bracken: 919-829-4548

Cary News is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

Commenting FAQs | Terms of Service