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. Last Updated: 07/27/2016

More Retail Space Is Coming to the Arbat

For MTThe $25 million office and retail project on the Arbat is nearing completion.
Construction of a $25 million office and retail center on the Arbat is nearing completion, with finishing work on the interior set to begin in June, marketing agent Stiles & Riabokobylko said.

Real estate experts predict the seven-story, 25,000-square-meter building's retail space will be snapped up.

Svetlana Karlova, manager of business development & research at DTZ Zadelhoff Tie Leung, said the project's retail space would sell well because the Arbat is one of the city's few clearly defined shopping areas.

"Despite the large number of shopping centers being constructed outside the Garden Ring, the Arbat remains an extremely popular place for shopping and dining out," said Natalya Oreshina, head of retail at Stiles & Riabokobylko, the local affiliate of Cushman & Wakefield Healey & Baker.

The project, located at 8/10 Arbat, will have a 4,500-square-meter retail area for 29 shops on the lower floors, a four-screen movie theater and parking for 190 cars.

The complex will also have 8,500 square meters of class A office space on the upper floors that might be a harder sell.

"The offices could be a concern," Karlova said. "The area is not regarded as a prime location, mainly due to the popularity of Old Arbat with tourists as well as the potential problem with parking for office occupants."

However, she said recent office developments in the neighborhood -- such as at 1 Arbat, where the Tyumen Oil Co. recently bought out the office space, and Filippovskoye Podvorye, which was pre-leased -- have been successful.

Russian architect Ecoproject + is developing the project together with metals company Midland Resources Holding Ltd. and investment company Finsnab-M.

Ecoproject + has also been involved in the Galina Vishnevskaya center, Agalarov House and Dom Patriarkh, said Yelena Kuzmina, spokeswoman for Stiles & Riabokobylko.

The site was obtained under a 49-year lease agreement with the Moscow city government and was not subject to historic protection orders because the site's original building had been pulled down in the 1960s, Kuzmina said.

Construction on 8/10 Arbat started last May and is due to be finished in the last quarter of 2003.

"The four-level underground car park has been already constructed and the third floor of the building is being constructed," Kuzmina said.