Sunday, July 04, 2004
By KATHY JUMPER
Real Estate Editor
The beach and the movies were a bankable mix in Destin, and Rave Motion Pictures owners expect similar success in Orange Beach.
Rave president Thomas Stephenson Jr. plans to build a 68,000-square-foot, 15-screen theater by next June at The Wharf, a mixed-use development planned for 200 acres on the Intracoastal Waterway in Orange Beach.
"The theater in Destin has been incredibly successful," said Stephenson from Rave's headquarters in Dallas. "It's done beyond what we thought it would do." The theater opened last November in Destin Commons, a lifestyle shopping center that includes Bass Pro Shops.
Birmingham-based AIG Baker plans to build The Wharf, which will include a 3,400-seat Rave movie theater, 330 condominium units, a marina, retail stores, restaurants, hotels, a five-story Ferris wheel, and an amphitheater for outdoor concerts. A mile-long boardwalk on the waterfront would connect all the venues.
Baker has the site on the south side of the Intracoastal Waterway, near the Foley Beach Express bridge, under contract, and expects to purchase the land by the end of the year. Baker opened a sales office last Friday at the site near the bridge. Condo prices are expected to be released within a couple of weeks, and REMAX of Gulf Shores and Orange Beach and Meyer Real Estate will market the units.
Stephenson, 49, started Rave in 1999, and has 16 theaters in Alabama, Arkansas, Florida, Illinois, Indiana, Louisiana and Ohio. He expects to have 25 theaters by the end of 2005.
Q: You must like the concept of building a theater at the beach or in a resort town.
A: "I think that whole part of the world, from the west side of Panama City to west of Orange Beach, is exploding. I think Orange Beach is unique in that so many of these places have not had the opportunity to put retail, restaurants, a theater and condos on the water. I think this is a wonderful opportunity to create this incredibly interesting place to be.
"Once people get to the beach side, they never need to leave. It will have everything from condos, retail and a theater."
Q: Haven't you done other projects with Alex Baker, president of AIG Baker?
A: "We met three years ago, and we've gotten to be friends. We think he and his team do very interesting projects." Rave has built theaters at several of Baker's developments, including Jubilee Square in Daphne.
Q: How is Daphne's theater doing?
A: "Daphne has done so well that we've added two screens. It now has 12 screens and we're thinking of adding more."
Q: You have five theaters in Alabama, and Orange Beach will make six. Why so many?
A: "Alabama has been a terrific state for us." He said one reason might be that there weren't many new stadium-seating theaters in the state. Stadium seating features high-back, recliner seats with retractable cup holders and arm rests and 48 inches of leg room, according to Rave.
Q: Did you look at other sites at the beach before deciding on The Wharf project?
A: "We built Daphne first and we understood that we weren't pulling people from as far as Orange Beach. We started thinking about another theater site. The non-stadium theaters have not done as well," as stadium-seat theaters. "All we do is stadium theaters. And it's a matter of finding the right project and the right piece of land."
Q: What kind of investment does it take to build the theater in Orange Beach?
A: "It costs close to $1 million per screen."
Q: How do you think the theater will do in the off-season at the beach?
A: "What we've found in Destin is that the off season is not nearly as off as it was 10 years ago. In November it gears up around Thanksgiving and then again at Christmas. Then you have snowbirds coming down in mid-January. Then you go into spring break. Summer is obviously huge. And there's a significant number of people who live there year-round and so many owners come down for weekends."
Q: Plus, when it rains, the beach crowd goes looking for something else to do, such as the movies?
A: "When we look at the numbers in Destin, we know if it rained that day."
Q: Who is your biggest competition?
A: "It depends on the market. Sometimes it's Regal or Carmike. We focus more on building the theater in the right place and worry less about the competition."
Q: Are you familiar with the Gulf Coast?
A: "I grew up in Nashville and we'd vacation at the Grand Hotel. And we stayed in Destin. I like that part of the world."
Source: Mobile Register