Mixed Use Development Newsbriefs

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National News and Trends
Game Day--Sports Venues, Mixed-Use Development: Home Run or Foul Ball?
Mixed-Use Density Yields Urban Excitement
One-Stop Shopping (Means Mixed-Use Gains Further Respect Nationally)
Real Estate Developers Craving Piece of Whole Foods (to Anchor Their Mixed-Use Projects)

Regional News
Hearthstone, SilverStone Join in $62 Million Condo Venture (Near Silicon Valley) (CA)
Kwik Way Project Details to Be Unveiled (and Hopefully With Little Opposition From Walnut Creek Residents) (CA)
Condo Developer Pays $300,000 for Air Rights ([in Orlando]) (FL)
Hollywood Planning Board Recommends Allowing Two Mass Transit-Oriented Projects (in Florida's Broward County) (FL)
Nocatee Construction Beginning (as a New Mixed-Use Project Take Roots in the Sunshine State) (FL)
Another Vision for Shady Grove (Includes Mixed-Use in This Maryland-D.C. Suburb) (MD)
National Harbor's Housing Boon (Brings More Mixed-Use to Maryland's P.G. County) (MD)
Developer Plans Mix of Uses for North Davidson Property (in North Carolina) (NC)
Wanting the Old Main Street Back (in Las Cruces, N.M.) (NM)
Reuse Plan Eyes AM&A's Building (for Mixed-Use as a Further Transformation of Downtown Buffalo) (NY)
Hanover's $100M University City Project to Break Ground (Bringing New Life to Philadelphia Neighborhood) (PA)

National News and Trends

Game Day--Sports Venues, Mixed-Use Development: Home Run or Foul Ball?
Commercial Property News (10/05) Vol. 19, No. 17, P. 36; Elphinstone, J.W.

Nationwide, developers and civic officials are placing high hopes on new sports venues that are supported by the economic engines of mixed-use projects. The goal in many cases to revitalize run-down urban areas. In most cases, these developments have been met with much debate, with opponents criticizing the use of public funds for private enterprise. Creating viable sports and entertainment districts where people also will live requires more than just an impressive new stadium or arena. Nationwide Realty Investors President Brian Ellis cautions, "You can't plunk a sports facility down and it magically fixes an area. The sports facility has to be paired with other economic generators to work." His firm spearheaded the Nationwide Arena district in Columbus, Ohio, that today includes 1 million square feet of commercial space, 350 residential units and a public park along with the arena where the Columbus Blue Jackets play pro hockey. Crucial steps in the process include selecting the right site, formulating with a master plan that is flexible enough to create the high-density areas that are needed and coming up with the right mix of property that will make the overall project successful.
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Mixed-Use Density Yields Urban Excitement
Retail Traffic (08/05) Stark, Robert L.

Today's commercial property developers have a unique opportunity to do things that can transform areas, creating what many consider to be a "healthier society." This means mixed-use environments that create walkable, live-work-play neighborhoods. The article's author holds up New York and Boston as cities that are built for pedestrians. Consequently, they are not bad models to follow when crafting new mixed-use projects with vertical integration of residential, offices and stores that can drive activity 24 hours a day and seven days a week. More specifically, the Crocker Park project in Westlake, Ohio, is shown as an example of mixed-use at its best. It is 50 percent residential space, 30 percent retail and 20 percent office. In total, it boasts around 2 million square feet of development and integrates its offices and living units above a retail streetscape that is part of a classic grid of streets. The article's author, who is CEO of Crocker Park developer Stark Enterprises, writes: "Everywhere--in signage, in plantings, on banners, in special touches like outdoor hearths and decorative espaliers--we invite beauty through the details at Crocker Park."
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One-Stop Shopping (Means Mixed-Use Gains Further Respect Nationally)
Retail Traffic (08/05) Vol. 47, No. 8, P. 24; DeGross, Renee

Once regarded as specialists, more and more of today's commercial developers are embracing a holistic approach to new urban construction and getting involved in mixed-use projects. To this end, they are joining forces to create live-work-play environments to create walkable communities. Among the leaders is Vornado Realty Trust, thanks mainly to its entrepreneurship and its ability to switch between property types. Other successes include Cousins Properties and Forest City Enterprises, while Simon Property Group recently launched a $1 billion asset intensification program that aims to squeeze more money out of its existing land holdings. For instance, it is considering putting high-rise apartments atop--or in place of--retail anchor tenants. Cousins, meanwhile, will develop its latest mixed-use project--dubbed Terminus--in Atlanta's Buckhead neighborhood, with approximately 600,000 square feet of offices, 75,000 sq. ft. of new stores and another 60,000 sq. ft. of residential units. Those companies forming joint ventures should be aware that such arrangements often raise ownership questions, operational and finance issues, and even parking problems. Urban Land Institute senior fellow Michael Beyard notes, "It adds to the complexity of deals."
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Real Estate Developers Craving Piece of Whole Foods (to Anchor Their Mixed-Use Projects)
Investor's Business Daily (10/07/05) P. A1; Alva, Marilyn

The Whole Foods retail chain has emerged as a trailblazer of sorts in the real estate industry. Developers are wooing the specialty grocer to anchor a number of mixed-use developments in urban neighborhoods from Miami to San Francisco. For instance, Whole Foods recently agreed to serve as the food anchor of 2200 Westlake, a mixed-use project that the Milliken Development Group is co-developing in downtown Seattle. Set to open in the fall of next year, the development will feature more than 260 upscale condominiums, a plethora of retail stores, and a hotel. Vulcun Inc., the other financial partner in the project, recently agreed to buy out Milliken's share. With those funds, Milliken says it will develop another mixed-use project near downtown Minneapolis, which also will be anchored by a Whole Foods store. President Don Milliken remarks, "We think having Whole Foods in our development is going to differentiate us in a very positive way from other condo developments in central Minneapolis."
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Regional News

Hearthstone, SilverStone Join in $62 Million Condo Venture (Near Silicon Valley) (CA)
Silicon Valley/San Jose Business Journal (10/17/05)

Hearthstone confirms that it has committed $62 million to a joint venture with SilverStone Communities of Northern California to develop 110 condominiums in Millbrae, Calif. This is part of a larger, mixed-use project dubbed Millbrae Town Plaza that will include both commercial and residential space. Condos are expected to range in price from $339,950 to $885,000 depending on size. The mixed-use development will be situated on a 1.58-acre parcel of land just east of the Green Hills County Club.
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Kwik Way Project Details to Be Unveiled (and Hopefully With Little Opposition From Walnut Creek Residents) (CA)
Contra Costa Times (CA) (10/14/05) P. F4; Kurhi, Eric

Developer Dave Latina is looking to replace the Kwik Way hamburger stand in Walnut Creek, Calif., with a mixed-use development that would contain housing, parking and neighborhood-style retail stores. Specifically, the plans call for 50 rental apartments, 70 parking spaces and approximately 10,000 square feet of retail space. Zoning would permit the new structure to rise as high as 50 feet. Latina says that his efforts have met with no opposition so far. In fact, he says that he has been surprised with the generally positive responses he has received from locals so far. He states, "We thought the process would be a nightmare, but it's been just the opposite." Last year, when property owners Charlie and Alex Hahn announced plans to bring a McDonald's fast-food restaurant to the site, area residents expressed outrage and the result was a serious of meetings in which the public was able to vent. The plan was eventually dropped, and Latina--interested in the same site--thought it best to consult with those who opposed the eatery before proceeding with any development plans.
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Condo Developer Pays $300,000 for Air Rights ([in Orlando]) (FL)
GlobeSt.com (10/12/05) Finkelstein, Alex

Broad Street Partners LLC will pay $300,000 to protect the skyline visible from its proposed 1.5-acre condominium project in downtown Orlando from new development. The $175 million Traditions Tower will feature 276 units priced from $400,000 to more than $1 million. The 32-story project also will feature 50,000 square feet of office space, 18,000 sq. ft. of retail space and a 990-space parking garage. The $300,000 will be paid to the Nap Ford Community School, located in the city's Parramore district. Due to the lack of long-term value, Orlando officials reduced the value of the air rights from $1.5 million.
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Hollywood Planning Board Recommends Allowing Two Mass Transit-Oriented Projects (in Florida's Broward County) (FL)
Miami Herald (10/06/05) Wright, Todd

In Florida, a pair of projects have been given the green light by Hollywood's Planning and Zoning Board to use the new "transit-oriented development" designation. Developers who take advantage of the land-use category can build at higher densities and contribute less money for road improvements. However, they must foot the bill for mass-transit upgrades. The projects, which could bring a total of 4,000 more residential units to Broward County, are generating criticism from those worried about traffic problems. The Sheridan Stationside Village, a mixed-use project encompassing 1,200 residences along with offices, commercial space and a hotel; and the Millennium Mall--featuring nearly 1 million sq. ft of commercial and office space, 2,800 housing units and a community theatre--would be the first such projects in the county.
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Nocatee Construction Beginning (as a New Mixed-Use Project Take Roots in the Sunshine State) (FL)
Florida Times-Union (10/04/05) Light, Joe

The PARC Group has broken ground on the first phase of the planned 15,000-acre Nocatee mixed-use community in St. Johns County, Fla., which eventually will include 14,800 residential units, 4.2 million square feet of office space, 1 million sq. ft. of commercial and retail space, 225,000 sq. ft. of light industrial space and 8,600 acres of green space. Construction of the single-family and multifamily homes is tentatively slated to begin in the first half of 2006, as the developer must first complete new County Road 210. The PARC Group will soon release the names of the builders for the development's first three residential communities. The planning and permit process has taken nearly 10 years, mainly due to concerns about the impact of development on wetlands.
(Web Link)
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Another Vision for Shady Grove (Includes Mixed-Use in This Maryland-D.C. Suburb) (MD)
Washington Post (10/14/05) P. B1; Trejos, Nancy

In Maryland, the Montgomery County Council is set to vote in November on a master plan that would transform an area near the Shady Grove Metro subway station into a mixed-use urban village complete with residential units, stores and office buildings. If approved, the plan would convert the primarily industrial area into a housing center that could draw up to 12,000 new residents. Locals are concerned with the increased traffic congestion and other related problems, but proponents of the project say that most of the newcomers would use Metrorail instead of automobiles. Still, the plan to build as many as 6,340 residences near the Metro station is a huge endeavor that will alter the balance locally. County Council President Tom Perez remarks, "The challenge is: Can we give assurances that we have the systems in place to carry out that plan? Can we ensure the infrastructure is in place?" In keeping with a goal of applying the principles of "smart growth" more in the county, officials want to require developers to allocate 25 percent of any new residences for families unable to afford Montgomery's median price of $666,540 for a new single-family detached residence. This marks a change in focus for the council, which previously had been preoccupied with redeveloping areas closer to the Washington, D.C., border. Now, more attention is being paid to the farther-out, I-270 corridor where new housing has yet to catch up with a boom in office development.
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National Harbor's Housing Boon (Brings More Mixed-Use to Maryland's P.G. County) (MD)
Washington Post (10/10/05) P. B1; Wiggins, Ovetta

Officials in Prince George's County, Md., have approved developer Milton Peterson's request to build 2,500 upscale condominiums and townhomes in Oxon Hill. The units--with prices up to $500,000--are part of National Harbor, a $2 billion mixed-use development to be built along the Potomac River. Peterson insists that housing is crucial to luring high-end restaurants and retailers to the area. County officials believe the high-end residential component represents a shift from the affordable garden apartments and townhome developments it has attracted in the past. Local residents who challenged National Harbor due to concerns about it turning the area into another Atlantic City support the development of luxury housing, as the buyers of such properties are likely to demand a similar quality of life. "It's another step in our evolution from rural to suburban to urban," explains University of Maryland fellow Peter Shapiro. "It's classic 'new urbanist' development pattern, the direction that most major development is going in around the region."
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Developer Plans Mix of Uses for North Davidson Property (in North Carolina) (NC)
Charlotte Business Journal (10/17/05) Howard, J. Lee

Squirrel Investments has announced plans to build a mixed-use development in the North Davidson Street area of Charlotte. The dimensions of the $600,000 to $800,000 project have yet to be set, but company officials say it will feature both office and retail components. Squirrel Investments managing member Scott Patterson states, "We're hoping to attract local retailers, shops and offices that complement the neighborhood." The firm has filed a rezoning petition to allow such a development. Specifically, it is seeking an urban residential designation that would allow for a combination of uses. A public hearing has been set for Dec. 19.
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Wanting the Old Main Street Back (in Las Cruces, N.M.) (NM)
New York Times (10/12/05) P. C9; Chamberlain, Lisa

The city of Las Cruces, N.M., frequently is cited as one of the most livable markets in the country. Now, though, local officials are attempting to undo a downtown makeover completed three decades earlier that has rendered its central business district something of a ghost town ever since. In 1973, an urban renewal effort practically leveled the Main Street thoroughfare, which boasted some 160 businesses at the time, in favor of an ill-advised pedestrian mall. Earlier this summer, a new master plan was passed, and a sensible downtown revitalization plan is finally starting to take shape. Amanda West, assistant director of community revitalization networks for the National Trust Main Street Center, remarks, "The important lesson that communities learned from the wave of pedestrian malls in the 1970's is that you can't have a cookie-cutter approach to revitalization." Now, the plan is to restore Main Street to its former glory. A mixed-use project will include an entertainment complex with a movie theater and at least one restaurant on the north end and residential units on the south end. Maryland-based UniDev reportedly is in preliminary talks with city officials to build the housing component of the new master plan. Still, turning around more than 30 years of decline will not be easy and will require Las Cruces to maintain both its civic and political focus over at least the next five years.
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Reuse Plan Eyes AM&A's Building (for Mixed-Use as a Further Transformation of Downtown Buffalo) (NY)
Buffalo News (10/17/05) Meyer, Brian

Centerstone Development has formed a partnership with property owner Richard Taylor to come up with a reuse strategy for the former AM&A building in Buffalo, N.Y. The partners are hoping to transform the vacant building into a mixed-use development that would include housing units, offices and retail stores. Centerstone CEO John Giardino is high on the project, stating, "Mixed-use buildings add a lot of energy to a downtown area." The site is currently made up of 10 total structures. Most of them are unified by a façade that is situated between the Brisbane Building and M&T Bank's headquarters, so this is one of the more prime locations in the city. An environmental firm is due this week to start removing or storing any hazardous materials inside the complex. When city inspectors toured the structure back in the first quarter of this year, they found combustible materials and drums containing unknown substances. Giardino remains convinced nothing will hinder the redevelopment from eventually getting off the ground. He adds, "We have satisfied ourselves that the building is structurally sound."
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Hanover's $100M University City Project to Break Ground (Bringing New Life to Philadelphia Neighborhood) (PA)
GlobeSt.com (10/11/05) Thomas, Marita

Hanover Co. is preparing to begin construction this week on a $100 million mixed-use development in Philadelphia's University City neighborhood. The Texas company is tackling the project under a 60-year ground lease from the University of Pennsylvania. The development will encompass 290 units of rental housing, along with an estimated 25,000 square feet of retail at the street level and parking for 300 vehicles. "The plan is to open apartments for leasing in spring 2007 with a full opening in fall 2007," according to a U-Penn spokesperson. "Retail tenants are not yet secure, but brokering is under way."
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