Projects In Brief
retail real estate development reports from America’s heartland, cities and waterfronts
Bay Harbor
Bay Harbor, located on five and a half miles along the Lake Michigan coastline, is a New Urbanism project. The multi-functional community, with its 19th-century feel and urban amenities, opened on July 4, 1999 to rave reviews across the state of Michigan; what is now a gracious town was once a derelict cement plant and rock quarry site that was dubbed in various reports as a “mining wasteland” and property that was “the bleakest in the state.”
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The project has been under development since 1994, when the Bay Harbor Company, LLC was formed as a 50/50 joint venture between CMS Energy Corp’s William T. McCormick and Victor International’s David Johnson. It cost nearly $1 billion to develop the blighted and environmentally-sensitive area into what is now desirable lakefront real estate. Century-old limestone quarries and a cement plant caused serious issues with local environmentalists and the state of Michigan. Working closely with the Department of Natural Resources, the State of Michigan and the surrounding communities, Bay Harbor was able to recycle enormous amounts of raw material like crushed rock and dirt and use it towards the construction of roads, and sand piles were eventually turned over to be used for the beach and sand traps for a golf course. |
Where the limestone quarry was once an eyesore, a state-of-the-art marina has been created along with the Bay Harbor Yacht Club. Approximately a half mile away, where piles of kiln dust and a shale quarry blighted the landscape, a nationally-acclaimed golf course has made the lakeshore lush and green. Another part of the land reclamation project is the world-class Bay Harbor Equestrian Club, complete with an Olympic-sized indoor arena.
Co-existing with the golf course, equestrian, and marina facilities is the retail section of Bay Harbor, called the Marina District. Covering 200,000 sq.ft., the district houses establishments like the Central Cafe & Creamery serving Starbucks coffee or The Original Pancake House dishing up everything from Belgian waffles to homemade pancakes. The Galley Gourmet uses wood-burning ovens to feed boaters and shoppers. Latitudes, given four stars in the Detroit Free Press, is a popular stop for residents. Boutiques and top-of-the-line retailers and galleries like Federico’s Design Jewelers, Churchill’s and Robert Frost Footwear fill the covered walkways of the Marina District. Activities for children and families include kayak and boat rentals and the Pottery Lodge where kids can paint and fire their own creations. Retail rents at Bay Harbor run between $18 and $28 per sq.ft., with terms varied according to the tenant. A 5,500-sq.ft. space is available that Bay Harbor officials want to fill with a restaurant.
Along with retail and recreational facilities at Bay Harbor, residential communities are dispersed between the background forest and Lake Michigan. The Maritime Building and its connecting Lodge, in the Marina Village, make up 50 condominium apartments and 45,000 sq.ft. of retail and dining space. Additional residential facilities are in the Grandview and the Harbormaster buildings, and the area has 800 luxury homes, ranging in price from $135,000 to $3 million on waterfront, golf course, lakeview and woodland properties.
For more information, contact Bay Harbor Properties, 4000 Main Street Suite 100, Bay Harbor, MI 49770; 231-439-2000.
Pentagon Row
Arlington, Virginia
Pentagon Row, a mixed-use project emerging in the growing Virginia/Washington D.C. area, is being built on an 18-acre site at a cost of approximately $120 million. The project, developed and financed by Federal Realty Investment Trust of Rockville, Maryland and Post Properties of Atlanta, Georgia, broke ground in August 1999; phase I is scheduled for a fall 2000 opening and final phases are expected to be completed by spring 2001.
| The open-air facility will have 300,000 sq.ft. of leasable space along traditional streetfronts with nearly 500 luxury, mid-rise, rental apartments above the retail pedestal. Surrounding the retail district is an outdoor plaza that will have multiple uses. During the winter, the area will be converted into an ice skating rink. During summer months, the plaza will become a place for picnics, concerts and flea markets. The development includes more than 1,800 parking spaces, 85 percent of which will be located in below-grade garages. RTKL Associates designed the project. |
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Pentagon Row is within walking distance for more than 12,000 people, and in excess of 620,000 people live within five miles, including more than 15,000 residents living in high-rise residential units surrounding the project. An expanding office population of more than 97,000 can be found within two miles of the project site, including civilian and military personnel within the Pentagon. The metropolitan Washington area attracts a significant tourist, vacation and convention population, accommodated by more than 9,000 hotel rooms within a two-mile radius.
The site is convenient to Interstate 395, U.S. Route 1, and the George Washington Parkway, among other highly traveled arteries. The complex will be visible from more than 225,000 cars each day. The project is highly accessible by the Metrorail Blue and Yellow Lines, as well as the Metrobus service. A direct, professionally landscaped pathway to the Pentagon City Metro Station will be maintained throughout the construction process.
Another mixed-use main street project under development by the Post/Federal Realty alliance is Shirlington Village, located within two miles of Pentagon City. Federal Realty purchased the property in 1995 and is working up a proposed redevelopment and expansion, with plans to build an additional 150,000 sq.ft. of retail space, 400 apartment units, 250,000 sq.ft of additional office space and a 125-room hotel.
Federal Realty is handling retail leasing for Pentagon Row. Anchors will include Harris Teeter, an upscale grocery based out of Charlotte, North Carolina; Bed, Bath & Beyond; and Bally’s Total Fitness. Negotiations are currently underway with a variety of other retailers, restaurants and attractions. Rents for small shops are $25 to $30 per sq.ft. Leases are typically signed for five to seven years.
For more information, contact Pamela Raye Brady, Federal Realty Investment Trust, 1626 East Jefferson Street, Rockville, MD 20852, 301-998-8100; Elizabeth Long, Post Properties, 4401 Northside Parkway, Atlanta, GA 30327, 404-846-5000.
Bristol Place
Bristol, Connecticut
Some people think that Bristol, Connecticut is New England’s best kept secret. The town is home to American treasures like the Little League Baseball headquarters, the Lake Compounce theme park, and ESPN broadcasting headquarters. Connecticut Magazine ranks Bristol as the fourth best city in Connecticut. Gatto Development Corp. based in Southbury, Connecticut hopes to add to the mix by introducing a new downtown main street complex known as Bristol Place.
Bristol Place encompasses a 17-acre site with frontage on three streets. The property, in the heart of downtown Bristol, has been the location of a failing, now-obsolete enclosed mall, which is the reason that such an unusually large piece of midtown property is available. Immediate neighboring uses include the city’s government center, courthouse, police station, post office and fire station. Daytime employment is estimated at 4,000 within walking distance of the project. The site is surrounded by historic buildings, small retail and office buildings, and a CIGNA regional claim center, with 800 employees, is across the street. Parking facilities will be provided via a 2,000-car structure built on-site. By 2003, the property is expected to benefit from the proposed $31-million Route 72 expressway extension and realignment, providing easier access to the project.
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The new retail/entertainment center is anticipated to break ground during 2000, with completion expected in 2001. It will contain 500,000
sq.ft. of retail space, including an anchor department store, hotel and convention center. Entertainment attractions will include a multiplex theater and an ice skating rink. ESPN facilities are expected to be a major draw, although what those facilities will be has yet to be determined. Possibilities include studios, a sports bar, a museum and/or a retail store. Leasing is being handled by SCS Retail Real Estate Ltd., also based in Southbury, CT. |
The multiplex theater is also expected to be a major draw. The nearest cinema complex is located at Forestville Commons and is a 10-year-old facility that is expected to close. A proposed theater in nearby Plainville will be an approximate 20-minute drive from Bristol Place.
Bristol Place is a public private partnership, with negotiations of funds underway. Designer for the project is PEG/PARK located in White Plains, NY.
For more information, contact Marshall Winston, SCS Retail Real Estate or Scott Goodreau, Gatto Development Corp, 100 Main Street North, Suite 203, Southbury, Connecticut 06488; 203-264-2400.
PGA Commons
Palm Beach, Florida
PGA Commons is designed to offer Palm Beach residents a myriad of activities and living amenities geared to the modern golfer and shopper. A mixed-use project with 130,000-sq.ft. of retail, restaurant and office space in a neo-traditional design, PGA Commons will also contain apartments located above the retail district and nearby town homes. Within a 5-mile radius of PGA Commons, the average household income is $80,500.
| Being developed at an estimated cost of $35 million by Palm Beach Gardens-based Channing Corporation, PGA Commons is located on 28.5 acres. Fidelity Federal Savings of West Palm Beach and Community Savings of North Palm Beach are joint-venture financiers for the project. The first phase is expected to be completed by spring 2000, and the final three phases are anticipated to open by January 2001. |
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Designers are Fisher Friedman of San Francisco and Oliver Glidden of West Palm Beach. The open-air facility, set in a village atmosphere, is reminiscent of plazas found in Madrid and Barcelona and will contain sculptures, upscale architecture and outdoor seating, including chess tables. PGA Commons will offer over 60,000 sq.ft. of retail space, 20,000 sq.ft. of restaurant space and 50,000 sq.ft. office space.
Channing Corporation will also serve as leasing manager for PGA Commons. Managing the facility will be the Continental Co. based in Miami. No tenants have been disclosed but plans call for trendy shops offering art, gifts and apparel. Lease terms for PGA Commons are approximately $25 per sq.ft. Average length of leases are five years with options.
For more information, contact Joel Channing or Jon Channing, Channing Corporation, 3300 PGA Blvd., Suite 550, Palm Beach Garden, FL 33410; 561-630-8630.
Marq*E
Raleigh, North Carolina
Entertainment is taking on a whole new identity in Raleigh, North Carolina. Following in the footsteps of its prototype Marq*E in Houston, Texas, developer PLC Commercial is recreating the entertainment concept in Raleigh. PLC officials describe the Raleigh Marq*E as taking a mall atmosphere and attractions and placing them into an open-air, village atmosphere. Marq*E is a place for people to shop, eat and be entertained, according to PLC.
The Raleigh Marq*E is being constructed on 22 acres at a cost of approximately $45 million. The project will have 236,000 sq.ft. of leasable space, most of which can be accessed via covered walkways. The Marq*E will be home to an 18-screen Edwards Cinema with 4,000 stadium seats. Jillian’s, whose motto is “eat/drink/play,” will have a 45,000-sq.ft. bar and grill filled with pool tables and other entertainment amenities. There will also be a number of other restaurants and open-air cafes, including Bayou Brew and Surfers Paradise.
| Within a ten-mile radius the population of Raleigh in 1998 was 392,022 with $55,855 as the average household income. The Raleigh
Marq*E is located at the convergence of I-440 and Capital Boulevard (Route 401) which is less than four miles from downtown Raleigh and 10 miles from the Raleigh-Durham International Airport. The annual average traffic count for Route 401 and Route 1, north of Route 440, in 1998 was 64,000. Route 440, west of Routes 401 and 1, saw 102,000 cars in 1998. East of Routes 401 and 1, Route 440 saw 81,000 cars in 1998. |
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PLC is serving as financier and manager for the Raleigh Marq*E. Designer for the project is McClaren, Vasquez and Associates. Leasing will be handled by Lord Associates, based in Aspen, Colorado. Rents range between $20 to $40 per sq.ft.
For more information, contact Mike Lutton, PLC Commercial, 23 Corporate Plaza, Suite 250, Newport Beach, CA 92660; 949-721-9777; Gary Lewis, Lord Associates, 816 Park Harbour Drive, Youngstown, OH 44512; 330-726-9660.
Waterford Lakes Town Center
Orlando, Florida
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Waterford Lakes Town Center is a shopping and entertainment center located on a 113-acre site within the master-planned residential community of Waterford Lakes on Orlando’s east side. The site is bordered by the East-West Expressway, Alafaya Trail, Waterford Lakes Parkway, and Woodbury Road. The new $100-million, open-air shopping district, being developed by Simon Properties Group, will offer 1.1 million
sq.ft. with a mix of specialty apparel, sporting goods, children’s items, home accessories, a health and fitness center, restaurants, and entertainment. More than five acres of lakes and fountains enhance the site, and many restaurants will offer outdoor patio dining overlooking the lakes and other water features. |
Phase one of the two-phase project is scheduled to open this month with ten anchors and 98,000 sq.ft. of specialty stores. Phase two will see another six anchors, a health club, home-and-office-related retailers, and 107,000 sq.ft. of specialty stores anticipated to open in fall 2000.
Anchors include a Regal Cinemas 20-plex theater, Barnes & Noble, Bed, Bath & Beyond, Just For Feet, Old Navy, and Waves Music Superstore. Other retailers are Avenue, Bath & Body Works, Beauti-Works Salon & Spa, Claire’s, Friedman Jewelers, Hair Cuttery, The Icing, Motherhood Maternity. Food tenants include Baha Burrito Kitchen, Barnie’s Coffee & Tea Company, Caffe Positano, Johnny Leverock’s Seafood House, Longhorn Steakhouse, Marble Slab Creamery, New China Gourmet, Orlando Ale House, Panera Bread Co, Planet Smoothie, Quizno’s Classic Subs, Rafferty’s, Romano’s Macaroni Grill.
The center’s trade area sustains a residential growth rate of 8 percent per year. Projected demographics for the year 2000 show a population of 177,470 with an average household income of $58,770. Daytime employment is projected at 58,412, with 28 percent growth anticipated due to local employers including Lockheed Martin Corporation, the University of Central Florida, Westinghouse Electric, and more than 80 companies in the nearby Central Florida Research Park. Tourism statistics show that 348,077 out-of-state visitors and 303,846 in-state visitors visit the greater Orlando trade area weekly.
Waterford Lakes offers a contemporary, Mediterranean setting designed by Hodges & Associates of Dallas, Texas. Financing for the project was provided by Bank of America.
For leasing information, contact Paul Ajdaharian, 317-685-7350, or Myles Minton, 317-685-7350, Simon Property Group, National City Center, 115 W. Washington St., Suite 1345, Indianapolis, Indiana 46204-3464.
Lifestyle 2000 at Music Village
San Diego, California
The rehabilitation and adaptive reuse of a 55,000-sq.ft. building is the centerpiece of an ambitious, 241,000-sq.ft. mixed-use project — Lifestyle 2000 at Music Village — that is being developed in San Diego by American National Investments Inc. (ANI) for Music Village, LLC, the ownership entity of which ANI is managing member.
| Interior demolition work has been completed for the transformation of a former Woolworth building into a 25,000-sq.ft. House of Blues restaurant and entertainment venue at the heart of downtown San Diego’s historic Core District. The $22-million Music Village redevelopment will also renovate and use the contiguous 10,000-sq.ft. J. Jessop & Sons building next door. Nine levels of new construction above the existing structures will accommodate a two-level, state-of-the-art, 40,000-sq.ft. 24-House Fitness Center, including a pool and a basketball court; nearly 300 spaces of public parking; and more than 50 luxury loft apartments. The rehabilitation of the Jessop building was an issue of concern to the San Diego Historical Site Board, which designated as historic a portion of the building’s facade prior to approval of ANI’s application for a conditional use permit for the project. “Our response was to design Music Village to emphasize the architectural context of the facade,” says Gina Champion-Cain, president of ANI. “Our objective is to restore to the greatest possible extent the historic fabric and design context of the Jessop building, which was distinguished by its cut masonry curtain wall, arch windows and terra cotta trim.” |
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The ground-floor level of the Woolworth building, which was not under any historic preservation mandates, will be renovated for formal restaurant use for the House of Blues and will look down into the basement-level entertainment/dining area. An internal pedestrian alley, which extends along the Woolworth building’s northern wall, will serve as an interior queuing area for patrons of evening entertainment and will also provide bar and restaurant services. The building’s “Woolworth” marquee will be restored and become the signage for the House of Blues. Patio dining under the marquee will facilitate guests’ enjoyment of the revitalized streetscape by night and will provide a pleasant and convenient lunch option for thousands of workers in high-rise offices in the nearby financial corridor.
Kaplan McLaughlin Diaz of San Francisco is architect for development of concepts. Graham Downes Design & Architecture of San Diego is architect of record and designer of House Of Blues tenant improvements. Roel Construction Company of San Diego is general contractor. Broyles Construction & Landscaping, Inc. of La Mesa is contracting consultant. Dodd and Associates of San Diego is structural engineer.
ANI sees Music Village as the prototype of their “Lifestyle 2000” concept and hopes to create other “vibrant villages” that co-tenant name-brand retail and entertainment venues to create destinations that attract large crowds of local customers and tourists to an urban center. The company is committed to the principle that great cities, by definition, have great downtown urban cores. Other concepts that the company hopes to develop are: “Lifestyle Habitat,” a development whose mission is to generate value through the creation of world-class destinations for urban signature properties that can combine brand-identified retail and entertainment venues with places to live; and “Creating a Community,” the development of places where people can live and shop in accordance with their lifestyles and which satisfy municipal governments’ political and social priorities for increased affordable, quality housing and pro-social, leisure activity on urban streets.
Although the Lifestyle 2000 at Music Village in San Diego is almost entirely privately funded, there was substantial cooperation between ANI and the City of San Diego. Champion-Cain worked closely with the Centre City Development Corporation, a non-profit corporation established by the San Diego City Council to plan, facilitate and manage the redevelopment of central downtown area. Music Village will help to serve as a conduit from the city’s historic Core District to Horton Plaza, San Diego’s main retail area. The project will also provide the city with much needed public parking.
Space is still available for lease in the Jessop building. Champion-Cain is handling leasing and, although the type of tenant has not yet been decided, is looking for either an upscale restaurant or multi-tenant retail/office users.
For more information, contact Gina Champion-Cain, president, American National Investments Inc., 619-235-5606.