Mixed-Use Development Newsbriefs

National News and Trends
Viva Lifestyle Centers!
UConn Decides to Build Its Own College Town (Joining Other Colleges in Mixed-Use Development)
Mixed-Use Commands Attention
Phoenix Realty Goes Middle Market
Exceptional Mixed-Use Projects CD, Volume 1 Now Available
Capital MarketPlace, September 21, 2006, New York, N.Y.
Mixed-Use Development Conference, November 16-17, 2006, Hollywood, Fla.

Regional News
Pima County Codifies Mixed-Use as Option (AZ)
Is Mixed-Use Zoning the Path of City's Future? (CA)
Closings: GE Real Estate (Refinances Landmark Mixed-Use Project in D.C.) (DC)
Boise Tries to Make Zoning Process Easier (for Mixed-Use Projects) (ID)
Neyer Set to Finalize Deal for N. Ky. Mixed-Use Project (KY)
Retail Shops to Fill Out Baltimore's $65M Quarry Lake Development (MD)
Developer Slates $500M Mixed-Use Neighborhood (NJ)
Developer Takes Chance on W-B (With Mixed-Use Project) (PA)
Mixed-Use Three PNC Plaza Goes Green (PA)
Nashville May Grow Up With a 1,057-Ft Tower (TN)

National News and Trends

Viva Lifestyle Centers!
Chain Store Age (07/06) Vol. 82, No. 7, P. 118; Field, Katherine

The recent International Council of Shopping Centers (ICSC) Spring Convention was proof positive that lifestyle centers, mixed-used developments and town centers are supplanting traditional malls. The conference hit an attendance record at 46,000, suggesting that initial concern in the industry that development might be slowing was misplaced. "We were shocked at the retailers' growth projections, at the numbers of stores that they are looking to open," said Jones Lang LaSalle Retail CEO Greg Maloney. "The mindsets are absolutely positive--and the outlook is positive. Having that kind of atmosphere helps us to do deals." Indeed, the ICSC is the setting where a quarter of all U.S. retail lease agreements are reached. Most of the lifestyle centers, mixed-use projects and other nontraditional venues that have attracted so much attention from retailers are redevelopments of existing properties. For instance, of the 40 malls owned by Pennsylvania Real Estate Investment Trust, 25 are in some stage of redevelopment, according to the group's Joseph Coradino. In addition to converting an enclosed mall into an open, exterior facility, developers are also looking to infuse entertainment into their projects. A clear theme in Las Vegas at ICSC was the desire among customers for convenience, services and entertainment combined in a singular shopping experience.
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UConn Decides to Build Its Own College Town (Joining Other Colleges in Mixed-Use Development)
New York Times (08/09/06) P. C9; Gordon, Jane

Colleges are looking to increase their appeal to incoming students by helping to develop towns around their campuses. Mixed-use development has proven to be a major factor in some plans. In Columbus, for example, the City Council adopted its "Plan for High Street: Creating a 21st Century Main Street" that includes a $130 million mixed-use project for a two-mile stretch of street that runs past Ohio State University. The University of Pennsylvania announced plans earlier this summer to demolish a section of Walnut Street near its Philadelphia campus and replace it with a $75 million retail and residential project. The University of Connecticut is also part of the trend, recently agreeing to kick-start a sweeping project in the Mansfield suburb where the campus is based. Work on the development, dubbed Storrs Center, will commence in 2007. It will add approximately 800 rental apartments and for-sale condos, approximately 200,000 square feet of retail and restaurant, another 40,000 to 75,000 sq. ft. of offices, and between 5,000 and 25,000 sq. ft. of civic and community space. Storrs Center has a projected cost of $165 million and will be spread across 49 acres. The town of Mansfield expects to gain between $3 million and $4 million in yearly property taxes from the mixed-use development.
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Mixed-Use Commands Attention
GlobeSt.com (07/19/06) Ritter, Ian

Speakers at the International Council of Shopping Centers' recent New England Idea Exchange talked about both the pluses and minuses of mixed-use developments. One of the major hurdles developers face in getting these projects off the ground are zoning laws that different municipalities currently have on the books that restrict the uses of buildings. Samuels & Associates principal Joel Skylar noted, "Traditional zoning doesn't work when you're trying to mix uses because traditional zoning was created to separate uses." Another speaker, New England Development senior vice president Douglass Karp, reported that a strong retail environment is typically a must for a successful mixed-use project. He added, "We're often looking for the retail piece first, and trying to figure out the rest after that." But LNR Property Co. senior vice president David Hall stated that retail often is a secondary consideration in the mixed-use developments that his firm builds. He explained that in some instances, the balance of a new community can be thrown off with the wrong mix of retail tenants.
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Phoenix Realty Goes Middle Market
Wall Street Journal (07/26/06) P. B10; Corkery, Michael

New York-based Phoenix Realty Group has found success financing "work-force housing" for middle-income residents in and around some of the country's most pricey markets. Now, the firm has launched the Metropolitan Workforce Housing Fund, a $250 million vehicle that aims to attract institutional and high-net-worth individual investors to finance both for-sale and rental housing along with mixed-use projects in three states: New York, New Jersey, and Connecticut. Phoenix Realty Group's three earlier funds, all of which invest in California, have attracted such big-name investors as Citibank and MetLife Inc. Phoenix is targeting prospective homeowners whose household income ranges from 80 percent to 200 percent of each targeted area's median income. According to company officials, the biggest risk to these funds is the relative inexperience of some of the developers.
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Exceptional Mixed-Use Projects CD, Volume 1 Now Available

Learn from today’s successful mixed-use developers! CD contains 24 case studies in full color, with tips on how to gauge the market, win over community stakeholders, and finance, phase and market your project. Member Price: $49.95
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Capital MarketPlace, September 21, 2006, New York, N.Y.

NAIOP and ICSC are joining together to present the Commercial Real Estate Capital MarketPlace, designed exclusively for users and providers of debt and equity capital, investors and lenders active in commercial real estate development — with particular regard to mixed-use and shopping centers.
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Mixed-Use Development Conference, November 16-17, 2006, Hollywood, Fla.

To understand mixed-use in today's real estate market, ICSC, NAIOP, BOMA, NMHC and ARDA have joined together to host a landmark Mixed-Use Conference that will be of interest to anyone involved in developing, designing, financing, leasing, managing and marketing a mixed-use project, as well as new and expanding retailers.
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In Arizona, Pima County officials recently passed a new ordinance that allows mixed-use developments to be erected next to each other and even vertically in the same multi-story buildings. The ordinance, which goes into effect on Aug. 21, is viewed as the first step toward a more broad-based policy that moves away from the traditional suburban community model in the county. The new law allows between 20 percent and 50 percent of any commercial project to be dedicated to residential use. In the process, existing buffering and screening requirements for adjacent housing have been waived. Pima County director of planning Arlen Colton stated, "We want to follow the more enlightened communities that want to move away from single-use zoning that forces people to get into their cars for anything at all. This is our chance to at least offer options for something different." Under the new code, commercial property down-zoning will not only allow mixed commercial and residential use, it will require it.
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Is Mixed-Use Zoning the Path of City's Future? (CA)
Palo Alto Weekly (08/08/06) Tanenbaum, Molly

In early August, the City Council in Palo Alto, Calif., took measures to rezone the city to protect ground-floor retail space before Proposition 90 appears on the November ballot. Opting for the quickest and most simple way to limit housing projects on commercial land, seven of the nine Council members voted to change zoning to allow mixed-use projects that combine retail and housing and prohibit single-family residences in commercial sites. Two Council members, John Barton and Peter Drekmeier, were absent for the vote. In supporting the mixed-use initiative, Councilman Larry Klein remarked, "We have to prevent housing being built on a 'willy-nilly' basis."
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Closings: GE Real Estate (Refinances Landmark Mixed-Use Project in D.C.) (DC)
Washington Post (07/24/06) P. D3; Hedgpeth, Dana; Kirkham, Chris

GE Real Estate has agreed to provide a $242 million loan package to JBG Cos. to refinance L'Enfant Plaza, the landmark mixed-use development in Washington, D.C. Maryland-based JBG is doing a major makeover of the project, which includes a 370-room hotel, retail stores and offices. The hefty loan is separated into two segments: a five-year, $172.5 million fixed-rate and a $69.5 million floating rate.
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Boise Tries to Make Zoning Process Easier (for Mixed-Use Projects) (ID)
Idaho Statesman (07/18/06) Hem, Brad

In Idaho, Boise city officials are touting a proposed zoning code change designed to simplify the approval process for mixed-use projects ranging from one city block to thousands of acres. The ordinance would enable developers to come up with a conceptual plan for a project and then request city approval of the overall plan, as opposed to asking for piecemeal zoning changes or other exceptions to city code. Boise Councilwoman Elaine Clegg notes, "The beauty of this ordinance is it can be used for anything from a planned community to a one-block project." For instance, infill specialist David Hale is hoping to use the ordinance for his proposed, six-block redevelopment of the city's Linen District. The plan would be smaller, but the various details--ranging from building heights to streetscaping--would be similar. He points out, "It would allow me to go in and design zoning guidelines that specifically cater to one development." All concerned state that specific plans could lead to better overall projects and could prove especially useful for firms looking to redevelop the area's stock of vacant shopping centers. Boise Mayor Dave Bieter supports the new ordinance, stating it would provide significant incentive for developers to build large projects closer to the city. The proposal is expected to be enacted by the first of September.
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Neyer Set to Finalize Deal for N. Ky. Mixed-Use Project (KY)
Cincinnati Business Courier (08/07/06)

Al Neyer Inc. expects to sign an agreement with the Northern Kentucky University Foundation to build a mixed-use development at the school's main entrance. The Ohio-based property developer has been named as the preferred developer for the site. Neyer plans to develop as much as 140,000 square feet of offices in addition to an undisclosed amount of retail stores, eating places and a 100-room hotel at the site. Neyer will look to coordinate site development plans with the adjacent Bank of Kentucky Center in hopes of creating an integrated project that links both projects with the NKU campus and U.S. 27.
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Retail Shops to Fill Out Baltimore's $65M Quarry Lake Development (MD)
Commercial Property News (07/20/06) Fickes, Michael

Obrecht Properties LLC has begun building the retail portion of its $65 million mixed-use Quarry Lake at Greenspring project in Baltimore. A Fresh Market grocery store will anchor the 115,000-square-foot Shops at Quarry Lake, which is already 32 percent leased. Locally based Obrecht also is building the 220,000-sq.-ft. office portion of the project, while Beazer Homes has agreed to develop 83 single-family residences and over 500 condominiums at the 230-acre site. The project contains a 500-foot-deep former stone quarry that is filling up with rainwater. Eventually, Quarry Lake will rank as one of the state's deepest lakes.
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Developer Slates $500M Mixed-Use Neighborhood (NJ)
GlobeSt.com (07/27/06) Peterson, Eric

The Bayonne Local Redevelopment Authority in New Jersey has chosen The Kaplan Cos. as the conditional developer of a 76-acre waterfront parcel in Bayonne. Kaplan plans to build a $500 million, mixed-use mini-city on the site, including 1,300 stacked townhouses and multifamily condominiums, 150,000 square feet of retail space, 180,000 sq. ft. of office space, 4,200 parking spaces, a marina, a public fishing pier and seven acres of park land. Kaplan will acquire the property from ChevronTexaco, provided that the project receives final approval. "It is important that this project be designed as a natural extension of the city, rather than as its own development," according to The Kaplan Cos. President Jason Kaplan.
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Developer Takes Chance on W-B (With Mixed-Use Project) (PA)
Citizens Voice (PA) (07/24/06) Gulla, Tim

Developer Dan Siniawa purchased the Murray industrial complex in Wilkes-Barre, Pa., for $1.5 million in a bankruptcy auction two years ago and now plans to undertake a $20 million-plus revitalization project on the site. The mixed-use development would feature 62 condominiums, a fitness center and as many as three new restaurants. Siniawa declined to comment about three other construction phases, but they could possibly consist of additional housing, offices and retail space. The development would be one of only a few in the area to involve the conversion of industrial buildings into residential properties. Siniawa believes such units are in demand, but he is awaiting word on whether state financial assistance can be obtained before proceeding.
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Mixed-Use Three PNC Plaza Goes Green (PA)
GlobeSt.com (07/17/06) Thomas, Marita

PNC Financial Services is advertising the proposed Three PNC Plaza, to be located on Fifth Avenue and Market Street in Pittsburgh, as the biggest mixed-use green building in the country. The 23-story structure will feature 30 condominiums on the upper 10 floors, a 10-story hotel with 185 rooms, 320,000 square feet of office space, a 330-car underground parking garage and ground-floor retail and restaurant space. Three PNC Plaza will replace 13 existing buildings, which will be deconstructed piece by piece so that the materials can be recycled or resold. PNC Financial corporate real estate director Gary Saulson says the company has reused or recycled 90 percent of the materials gathered during past projects. The building, which will cost upwards of $179 million to construct, is slated for completion in late 2008.
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Nashville May Grow Up With a 1,057-Ft Tower (TN)
ENR (07/31/06) Vol. 257, No. 5, P. 15; Post, Nadine M.

A proposed hotel/restaurant/condominium tower has received approval from the city of Nashville after certain modifications were made. Ground may be broken for the 1,057-foot high-rise as early as January if financing is successfully obtained. The developer, Giarratana Development, also needs to secure a hotel operator and an equity investor. The first version of the mixed-use project was rejected because the city said it was too similar to existing buildings, according to Ted Kromer, the company's development director. The subsequent design by Smallwood, Reynolds, Stewart, Stewart & Associates featured larger windows as well as a 200-foot spire. Another unique feature was the recessed corners, which would help divide the winds and reduce turbulence. Timothy R. Santi, senior project manager for the structural engineer, notes that "no perimeter frames were allowed" because the owner did not want anything to block the views.
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