Mixed-Use Development Newsbriefs

National News and Trends
Small Cities Mixing It Up (With Projects That Require Careful Planning and Teams)
Why Some Cities Think Developing at Rail Stops Is a Mighty Good Road
Mixed-Use Development Hailed at Conference
'Green Fund' Backs Mixed-Use Property
Exceptional Mixed-Use Projects CD, Volume 1 Now Available

Regional News
Atlanta Developer Plans 3,900-Acre Mixed Use (AL)
Mixed-Use Project Canceled in Fremont (CA)
Old Convention Center Site Design Advances (Featuring Mixed-Use Ideas) (DC)
All Systems Go for $1B Mixed-Use Florida Project (FL)
Breaking Ground, Then a Break (FL)
Indianapolis Receives National Honor for Fall Creek Place Project (IN)
$200M Green Project to Be New England's Largest (MA)
A Piazza for a Maryland Suburb (Delivers a Mix of Uses) (MD)
600-Acre Mixed-Use Residential Project Slated for Raleigh (NC)
3M-SF Mixed Use Project Planned for NH (NH)
Suburban Soul (Is What Mixed-Use Projects Deliver in Virginia) (VA)

National News and Trends

Small Cities Mixing It Up (With Projects That Require Careful Planning and Teams)
Commercial Investment Real Estate (12/06) Vol. 25, No. 6, P. 26; Hoban, Sarah

Several factors have pushed mixed-use projects onto commercial real estate's center stage in recent years. In particular, rising land prices and an increasing desire to contain sprawl have made greater-density developments more desirable. At the same time, higher gas prices have made working and living in the same pedestrian-friendly area more attractive to such diverse groups as young adults and empty nesters. Commercial property professionals who have been involved with successful mixed-use projects stress that each individual development must be approached differently. Jim Tucker, senior investment adviser at Sperry Van Ness, comments, "Mixed-use is not a cookie-cutter deal. It has to be something that responds to what the community already is." The team approach is also greatly recommended, especially for those developers with little to no experience getting such projects off the ground. Mixed-use projects have proven to be particularly effective as redevelopments of inner-city locales and as a means to re-introduce retail into locations that have previously been neglected. The right mix for such projects depends on the site. If development is set to occur on a major thoroughfare, a higher density of retail could be successful; less-trafficked sites may need to put the emphasis on residential to bolster what retail goes in.
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Why Some Cities Think Developing at Rail Stops Is a Mighty Good Road
Wall Street Journal (12/06/06) P. B1; Herrick, Thaddeus

Across the country, mixed-use development is springing up around rail stations. Such development is nothing new in such established markets as New York and Boston, with their well established subway and commuter-rail lines. Now, cities ranging from Denver to Salt Lake City are looking to light rail as a welcome alternative to suburban sprawl and the ensuing traffic congestion. Dallas' Mockingbird Station boasts a mix of loft apartments, retail stores, offices and an art-film center. CityCenter Englewood in the suburbs of Denver will offer a similar mix of uses built around mass-transit lines. Civic officials add that several Sunbelt cities' recent efforts to court development projects that offer both residential and commercial development should spur more growth around station stops. However, challenges abound-- including developers having to get much of the land rezoned to accommodate the desired mix of uses. Finally, upfront costs to developers can be quite high--particularly with public demands to include such components as plazas and parks in the final designs--and financial returns are often slow to be realized.
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Mixed-Use Development Hailed at Conference
ICSC.org (11/17/06)

Panelists at the first-ever International Council of Shopping Centers conference devoted to mixed-use development agreed that as America's population continues to grow, mixed-use centers could play a large role in changing the nation's real estate landscape. Forest City Residential Group CEO Ronald A. Ratner stated that by 2045, America's population will reach 400 million and some 20 million acres would have to be developed to house the additional people. However, if a mixed-use approach was embraced, this number could be decreased to 5 million acres. Steiner & Associates CEO Yaromir Steiner said, "There is an incredible pent-up demand for this." Mixed-use development faces the "critical challenge" of reaching an agreement between public officials and developers, according to Steiner, who also mentioned other complications such as parking and liability considerations. "It's always the condos that cause the problems," so the housing in these developments should be rented, argued ING Clarion managing director Douglas M. Case. Developers were urged to hold onto control of these projects, and to carefully handle the timing of construction of different components. Bankers concluded that each of these components should be analyzed separately and be able to stand on their own.
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'Green Fund' Backs Mixed-Use Property
Denver Post (11/14/06) Jackson, Margaret

Revival Fund Management is in the process of launching a diversified urban portfolio designed to appeal to socially responsible investors. For more than a year now, its partners have been in contact with pension funds and wealthy investors about investing in the so-called Urban Green fund, which will purchase and operate a portfolio of mixed-use, transit-friendly developments in walkable urban locales nationwide. The new construction will conform to green standards, which seek to reduce waste and energy costs and boost employee productivity. Since green building is a relatively new practice in the United States, though, there is not a lot of data yet on such things as performance and resale values. Partner Dennis Fleming remarks, "We feel we're at the tipping point where investors are looking for opportunities to invest responsibly. . . . What Wall Street wants [now] is data showing how these buildings perform over time."
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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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PEC Development Group has purchased 3,900 acres in Loxley, Ala., from Copper Station Holdings for $35 million. The property will become a mixed-use development, with PEC Development commencing infrastructure and road work late next year, after which regional and national builders will be tapped for the residential and commercial components. Single-family homes will account for 60 percent of the development, and 20 percent will be devoted to townhomes and apartments. The remaining 20 percent will consist of retail, suburban office and industrial space.
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Mixed-Use Project Canceled in Fremont (CA)
San Jose Mercury News (CA) (11/24/06) Fernandez, Lisa

In California, Fremont officials lament that a deal to build the "Centerville Marketplace" mixed-use development in the city has fallen apart. According to Fremont Mayor Bob Wasserman, the deal crumbled because the construction bids came in $20 million to $40 million too high. The project had been planned by developer James Tong since the spring of 2005. It was supposed to have included 110 townhouses and approximately 58,000 square feet of stores and eating places. However, Tong and Fremont's redevelopment agency have decided to mutually scrap the project, despite the fact that Fremont could have used the additional funds generated from retail and property taxes. Tong stated, "I wanted to bring a high-quality, mixed-use project to Fremont that we could all be proud of. Though it is clearly not the time or place for this project, I hope to work with the city again to see if we can find another design that might make more sense."
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Old Convention Center Site Design Advances (Featuring Mixed-Use Ideas) (DC)
Washington Post (11/22/06) P. D4

Washington, D.C.'s city government last month signed off on a design concept for a commercial and residential complex in the Northwest quadrant of the nation's capital. The $630 million project will be developed by a joint venture of Hines Interests and Archstone-Smith Trust and will feature a mix of approximately 700,000 square feet of offices and stores and 686 housing units. The mixed-use development will be erected on the site of the District's former convention center. City officials still must give their approval of the site's architectural plans.
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All Systems Go for $1B Mixed-Use Florida Project (FL)
Commercial Property News (11/16/06) Murray, Barbra

In Hallandale Beach, Fla., city officials have given Forest City Enterprises Inc. and Magna Entertainment Corp. final approval for the development of The Village at Gulfstream Park. This $1 billion mixed-use lifestyle project will be situated on Magna's 255-acre Gulfstream Park racetrack. When completed, the development will boast 1,500 condominiums, a 500-room hotel, approximately 750,000 square feet of retail space and another 140,000 sq. ft. of new offices. A 2,500-seat movie theater is also part of the design plan, along with 225 affordable housing units that will be erected on both the property and in surrounding areas. Forest City, which has agreed to serve as The Village at Gulfstream Park's property manager, reports that locals are especially high on the project's retail component. Regional director of development William P. Voegele commented, "There is a huge demand for upscale retail in the Broward, West Palm Beach, [and] Miami-Dade area. It is one of the most successful retail markets in the country."
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Breaking Ground, Then a Break (FL)
St. Petersburg Times (FL) (12/06/06) Yap, Chuin-Wei

In Florida, Pulte Homes celebrated groundbreaking for Wiregrass Ranch's residential component on Dec. 13. However, while the developer has been given the go-ahead to commence site preparation work, actual construction cannot proceed until commissioners in Pasco County approve the mixed-use project's designation as a development of regional impact. The Tampa Bay Regional Planning Council is expected to okay the project early next week, but final approval from the county may not be granted until March. When it is finished in 2016, Wiregrass Ranch will feature 8,500 single-family homes, 4,000 multifamily units, 2.7 million square feet of retail space and 1.2 million sq. ft. of office space. Additional multifamily units are possible.
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Indianapolis Receives National Honor for Fall Creek Place Project (IN)
InsideIndianaBusiness.com (12/08/06)

Earlier this month, the National League of Cities honored Indianapolis with one of its 2006 awards for municipal excellence. Specifically, the city was given the silver award for the Fall Creek Place project, which has helped transform a blighted area of Indianapolis into a growing mixed-income community. In addition to creating more than $60 million in private mortgages for homes, the project has created $24 million in new mixed-use initiatives and more than $1.2 million in annual property taxes. The Awards for Municipal Excellence specifically recognize those cities that take steps to improve the quality of life locally.
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$200M Green Project to Be New England's Largest (MA)
GlobeSt.com (12/06/06) Ford, Beverly

MassInnovation is undertaking a $200 million redevelopment of the former Wool Mill on Merrimack Street in Lawrence, Mass.--one that will make it New England's biggest environmentally friendly housing development. Monarch-on-the-Merrimack will feature 600 loft-style condominiums priced from $299,000 to $600,000 plus retail space on a half-dozen floors. Of the 200 units planned for the first phase, 40 have already been sold. The first phase--slated for completion next October--also will include 100,000 square feet of retail space and underground parking. When the rest of the project is finished in seven years, it also will feature a six-acre park on the Merrimack River; a rooftop garden; and such businesses as a bakery, a movie theater, a jazz club, and a café.
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A Piazza for a Maryland Suburb (Delivers a Mix of Uses) (MD)
New York Times (11/22/06) P. C7; Brenner, Elsa

In Maryland, the Rockville Town Square development looks to be one of the more impressive mixed-use projects to get off the ground in quite some time. Developers and civic officials are aiming for a look and a feel that avoids the "anyplace U.S.A." design of other similar projects. Art Chambers, director of community planning and development services for the Washington, D.C., suburb of Rockville, states, "No matter how big we get, we'll need the presence of homegrown enterprises in order to retain our unique identity." Sections of Rockville Town Square are set to open later this winter and in the spring of 2007. In total, the project will feature approximately 108,000 square feet of street-level stores and eateries, more than 600 residential condominiums above the commercial space, a public square and upwards of 2,000 parking spaces. The exterior design of the 15-acre, pedestrian-friendly project is being modeled after traditional Italian piazzas. Rockville Town Square is a joint venture of two developers--Federal Realty Investment Trust and RD Residential--and the local city and county governments. Federal Realty President and CEO Don Wood reports that Rockville's close proximity to the nation's capital, coupled with the region's general lack of town centers, make this an ideal location for such a mixed-use development.
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600-Acre Mixed-Use Residential Project Slated for Raleigh (NC)
Commercial Property News (11/30/06) Murray, Barbra

Carolina Communities Development Group has unveiled its development plans for Olde Towne, a mixed-use project that the firm is set to build in Raleigh, N.C. Olde Towne will be situated in the Southeast section of the city and will feature approximately 2,000 residences, an 18-hole golf course and some 360,000 square feet of retail space. The housing selections will range from condominiums and townhouses to single-family homes. The overall site design also will offer a plethora of green space in the form of walking trails, public recreation spots and wildlife habitats. Company officials expect the retail portion of Olde Towne to become available for occupancy by early next summer, along with the first for-sale residential lots.
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3M-SF Mixed Use Project Planned for NH (NH)
Nashua Telegraph (NH) (12/05/06)

W/S Development Associates has announced plans to erect one of the Hudson, N.H., region's biggest mixed-use developments. Dubbed RiverPlace, the W/S hopes to phase in a mixed-use project, transforming 375 acres that currently comprise two golf courses into a destination for shopping, dining and entertainment. Housing and a hotel are also part of the plan. The initial phase would be a 1.3 million-square-foot "lifestyle center," an open-air plaza made up of upscale stores, eateries, a multi-screen cinema, public parks and common areas. An outdoor ice-skating rink is also part of the design. Lifestyle centers are currently one of the commercial real-estate industry's hottest trends, fast replacing traditional shopping malls. Such centers are modeled after American downtowns and marketed as having the appeal of a historic Main Street.
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Suburban Soul (Is What Mixed-Use Projects Deliver in Virginia) (VA)
Washington Post (12/01/06) P. D1; Pearlstein, Steven

Competition in the commercial property sector is on the rise in the Washington, D.C., suburbs of Reston and Tysons Corner, Va. For a while, Tysons was viewed as the perfect example of everything that could go wrong in the 'burbs. Worsening traffic congestion and rampant sprawl were just two of the problems. Then, the "New Urbanism" movement took hold with its emphasis on walkable, mixed-use development featuring residences, offices and stores all in close proximity. While Tysons is still struggling to find this character, one such development--the Reston Town Center--is commanding rents and condo prices equal to and even surpassing the long-dominant Tysons in the market. Columnist Steven Pearlstein writes: "Walking around Reston, you can't help but marvel at how well it's been done. The quality and the variety of architecture, the careful attention to creating public spaces and inviting streetscapes, the clever ways in which cars and roadways are integrated into the project, the density that's been achieved without sacrificing human scale."
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