Santa Rosa developer eyes county's potential

Troy Moon Pensacola News Journal

May 18, 2008

When Joe Maloney gets in his car to head from his downtown work office to his westside home, he doesn't just drive.

He scouts.

He sees opportunity where most see empty lots. He looks for the future in neglected buildings that are ugly remnants from the past.

Maloney is president/CEO of Mpirical Development in Pensacola, a commercial real estate development company that built Santa Rosa Commons in Pea Ridge and is working on other development opportunities in Escambia and Santa Rosa counties.

He never stops looking for the next opportunity.

"If I see a dilapidated building, I'm wondering if we tear it down, what can we put in its place," said Maloney, 50, a 6-foot-8-inch, 280-pound behemoth who once played basketball for Butler University in Indianapolis. "When I'm driving around Gulf Beach Highway or Barrancas Avenue and see property that has fallen into disrepair, I'm thinking, 'We can do this or that there.' "

Maloney has delivered plenty of "this or that" to Santa Rosa County since relocating his commercial real estate development company from St. Louis in March 2007.

He developed the $45 million, 235,000-square-foot Santa Rosa Commons shopping complex on U.S. 90 that includes Santa Rosa County's first Target store.

Target opened last July while other tenants ? including Shoe Carnival, PetSmart, Baskin Robbins and Publix ? are expected to open in August.

Maloney said between 16 and 18 businesses eventually will occupy Santa Rosa Commons and provide about 350 jobs.

The development includes a strip shopping center, Ashley Place, which will house tenants such as Cuts by Us hair salon and an Asian restaurant. Outparcels include an already open Chili's restaurant and a yet-to-open Regions Bank branch.

Santa Rosa Commons has changed the landscape of the burgeoning Pace/Pea Ridge area, and Target is changing shopping habits as well.

"It's like we're finally growing up,'' said lifelong Pace resident Rebecca Sawyer, 33, who shops at Target "at least two or three times a month."

"For years, you had to drive into Pensacola to shop,'' said the mother of two. "This (Target) keeps the money here and the way gas is, it just saves you a lot of money not having to drive over there (to Pensacola) just to shop. I love it."

'It's economic growth'

Maloney said he moved here because it is the hometown of his wife, the former Molly Duncan. With the couple's three children grown, they wanted a change.

And though the economic climate has changed over the last four years, Maloney said economic opportunity was a driving factor in the move.

"There's more economic opportunity in the South than there is in the Midwest," Maloney said. "When we moved down here, the residential market was still going fairly strong."

It was the Pace area's residential growth that spurred Santa Rosa Commons, he said.

"At the time, Santa Rosa County's growth rate was the fifth fastest-growing county in the state," Maloney said.

But Maloney felt that the Pace area's commercial development had not kept up with the residential development.

"Part of the deal was that you have two regional malls and some big shopping centers around town in Escambia County," Maloney said. "You really didn't have that before we entered Santa Rosa County."

The development of Santa Rosa Commons has far-reaching impact across Santa Rosa County, said David Nielsen, 27, Mpirical's development manager.

"The projects we built in Santa Rosa pumps tax revenue into the county," Nielsen said. "The people shopping there were people escaping that market and going to Escambia County to spend their money. It's not just commercial growth. It's economic growth."

And Maloney said there is room for more.

"We still see the market in this region as under-retailed," he said. "There are people not in the market who should be, Costco for example."

Mpirical Development already has begun planning for a $73 million, 350,000-square-feet shopping center, Bella Vita, near Santa Rosa Commons that will include about 30 stores and a dozen restaurants and could provide up to 1,000 jobs.

Maloney said the complex would include all national retailers ? though he said it was too early to name names ? and could open in 2010.

Mpirical Development also is looking at developing three projects in Escambia County.

"We have three projects in the pipeline, but none that we can announce now," Maloney said. "And we've looked at other markets in the region, but currently there's nothing else under contract in the other markets."

Personal development

Maloney started Mpirical Development seven years ago after serving as vice president of retail development for the DESCO Group, which developed commercial retail projects in Missouri, Illinois, Oklahoma and seven other states.

Prior to joining the DESCO group ? where he worked for nine years ? Maloney operated the Maloney Company, which specialized in small-scale commercial development.

Maloney once considered becoming a teacher, but followed his dad into business ? though a much less messy business than his father was involved in.

"He was a farmer," Maloney said. "He started with a rented farm and $50 in his pocket and ended up with thousands of acres. But he was a businessman, albeit a farmer also.''

Maloney grew up on a pig farm in Brownsberg, Ind., working nearly every job on the spread.

"As soon as I could reach the pedals, my Dad had me driving something," he said. "Tractors, trucks, and an old Army surplus Jeep we had."

As a youngster, Maloney also played a lot of basketball in hoops-crazy Hoosier land.

"If you've ever seen the movie 'Hoosiers,' well, every gymnasium in that film, I grew up playing basketball in."

Maloney, who was a forward at Butler University in Indianapolis, described himself as a "hard-nosed player" who "fouled out of a lot of games."

"Their best player, they'd put me on him and I'd be in there clawing, biting and chewing on them," he said. "Whatever it took to help the team."

'A true team member'

It's the team approach that Maloney fosters at Mpirical Development, his employees said.

"He's a great guy to work with and for," said chief operating officer Clark Merritt, 42, Maloney's brother-in-law. "He's a true team member, always open to new ideas. I haven't been doing this long, but he'll hear me out."

Nielsen agreed.

"He just has so much experience and talent," Nielsen said of his boss. "But at the same time, he encourages us to give our own ideas and visions."

Still, it is Maloney's expertise that drives the company.

"He brings so much knowledge and background to the region," Merritt said. "When he talks, people listen."

And Maloney is talking about economic opportunity, even as most people see the current market in more pessimistic terms.

"This is a tremendous place to live and it's still very affordable,'' Maloney said. "So when the subprime mess goes away, we anticipate the growth coming back in full swing. And with more rooftops, comes opportunity for more retail.

"The market is not dead. It's just dormant.''



Six Questions for Joe Maloney

Question: It's tough all over, as far as the economic climate. Are you worried?

Answer: There are challenges today. But I've been through the Tax Act of 1996, that change. I've been through the credit crunch of 1991 and two minor recessions. I remember one day when the stock market lost 28 percent of its value in one day. With a challenge, comes an opportunity.

Q: You're a developer. You're successful. Not everyone loves developers and development. How have you been received here?

A: Sometimes, we're like the "60 Minutes" crew when we walk through the door because we do represent change, so I'm not always everyone's favorite person. There were some rough patches, but we were able to overcome them and create a good project with the community.

Q: We know your wife is from Pensacola. But what else attracted you to the region?

A: The biggest thing was the regional airport. We had to have the ability to get in and out to travel. Number two was the quality of life. Pensacola is located on the water, and for a small city, it does have a lot to offer.

Q: You grew up on a pig farm. Now you're a commercial developer. What, if anything, do you miss about that life?

A: I miss the simplicity and being outside all of the time. So now, we sit outside and grill, or sit on the deck out back and just relax. I love being outdoors. I miss that. I liked the heavy equipment, too -- driving tractors and bulldozers and things like that.

Q: You're a big dude who played Division I basketball at Butler. Do you still play any sports?

A: I don't play basketball. I had knee operations and back operations. It's not worth it anymore. I swing a golf club occasionally and play a little tennis when the weather is nice.

Q: What do you do to relax?

A: We don't park out butt in front of the TV and veg. We do watch some basketball. But we like to cook. We're (wife Molly) both good cooks. I grew up on a pig farm. If it's pork, we can cook it." Joe Maloney

President/CEO of Mpirical Development

- AGE: 50

- FAMILY: Wife, Molly Duncan Maloney. Three grown children.

- EDUCATION: Graduated from Butler University in Indianapolis with degrees in physical education and business.

- HOBBIES: A little golf and tennis. Boating, traveling, cooking, fine wines.