By Monica Chen

mchen@heraldsun.com; 419-6636

CHAPEL HILL -- The new owner of University Mall is hoping to unveil a modern, updated and more customer-friendly interior in time for the holiday season.

Madison Marquette Realty Services, a Washington, D.C.-based developer that bought the Chapel Hill mall for $40 million in December 2007, is embarking on multi-million dollar Phase 1 renovations that will brighten the mall, add more seating in center court and allow more arts and cultural events to be hosted there in the future.

"The general direction is to be a destination for Chapel Hill," said Karen Maytnier, vice president of Project Management with Madison.

All construction will be scheduled around mall hours. Renovations have begun with the move of the Engravables to the Southern Season end of the mall so that demolition can begin to open up center court. Construction is expected to finish in October or November.

The developer has also discussed exterior renovations with a number of tenants. Paul Harnett, senior vice president of Management at Madison, declined to divulge the details of future plans.

"When it relates to University, our direction is not to mimick or duplicate what Crabtree Valley [Mall] or [The Streets at] Southpoint is doing, but to try to create a more eclectic, unique group of merchants that's very local and regionally based," Harnett said. "But at the same rate, there are select targeted national retailers that we know would be very successful at University Mall."

The developers hope that one of these national retailers will be American Apparel. Madison launched a campaign in August on University Mall's page on Facebook, the social networking site, to bring American Apparel's attention to the mall.

The mall has a 90 percent occupancy rate. As for local and regional merchants, the mall has already begun to attract a different mix of tenants, starting with The ArtsCenter's branch office there.

As for existing tenants, Harnett declined to comment on leases, but said that the developer is bullish on local businesses such as Modern Times, that have the potential to expand in the future.

Merchants both old and new at the mall expressed enthusiasm for the renovation plans on Thursday.

Wendy Smith, who along with sister Bridget Temberton-Smith owns Cameron's, the quirky accessories store next to Dillard's, said she agrees with the developer's strategy of attracting local and regional merchants.

"University Mall is small enough that we can't be another Southpoint," she said. "The renovations are going to be such a beautiful facelift."

Katherine Nunn, owner of Gerrie & Co., the jewelry store that opened in the former Minata Jewelers space, also said she is excited about the renovations. Nunn expressed confidence that Madison developers will keep the existing tenants.

"In these times, I don't think anybody has to look for another space," she said. "We're all in this together."