Developer Bets on Luxury Shopping, Village-Style

Courtesy of Caruso Affiliated

The Americana is Rick Caruso's latest creation.

Even in a shaky economy, people are still shopping. Developer Rick Caruso's luxury malls, like The Grove in Los Angeles and the new Americana in nearby Glendale, are attracting shoppers who are ready to spend serious money.

Caruso's projects are outdoor shopping malls that resemble perfect little streets. With the Americana, Caruso has added housing above the high-end shops.

"I get excited when I travel and you see these spots where people are out, there's a sense of life to them," Caruso said on a recent trip to The Americana.

"For the most part, we're not in the shopping-center business. We're in the place-creation business."

With The Americana, Caruso has created a place that's twice the size of The Grove, and one that cost $400 million. It also adds a new ingredient, in the form of more than 300 condos and apartments above the shops.

There are streets — with curbs and street lights, fountains, and a little trolley that runs through the place.

Many urban planners are appalled by The Grove. They see it as too controlled, too planned, too perfect.

"You can criticize it, and say, 'Based on the books, you shouldn't do this' — I don't know what book that would be," Caruso said.

Shoppers have embraced the model. The Grove gets more than 25 million visitors each year, and they spend a lot of money — in fact, shoppers there spend twice as much money as people who go to traditional indoor malls.

As workers were frantically preparing for The Americana's grand opening, Caruso said, "We do what we think is right, and thank God the people have voted in favor of it."