Mixed-Use Development Newsbriefs

National News and Trends
Will Mixed-Use Dominate Development Landscape?
Fund Aims for $1B in Mixed Use
Exceptional Mixed-Use Projects CD, Volume 1 Now Available

Regional News
Hoover Considers New Mixed-Use Development (AL)
Developer Seeks Help From City (in Getting Massive Mixed-Use Project Off the Ground) (AZ)
Developers Creating Destination Centers (That Incorporate Mixed-Use Designs) (AZ)
Bay Area 'Smart Growth' Stunted (Meaning That More Mixed-Use Development Is Needed) (CA)
Monument Realty Picks Up Tiny Lot Near Stadium for $1.1 Million (DC)
Developers Win Battle in Condo War (Centering on a Mixed-Use Project in Florida) (FL)
$500M Transit Village Ready to Roll (in New Jersey) (NJ)
Don't Have a Downtown? No Problem: Just Build One (NV)
Changing Face of Queens: From Small Asian Shops to High-End Stores (NY)
Pittsburgh Tabs Waterfront Designers (for New Mixed-Use Project) (PA)
Berwyn Plan Would Replace Housing (With a Mix of New Residential and Retail) (PA)
Large Mixed-Use Development Planned for Northwest (TX)

National News and Trends

Will Mixed-Use Dominate Development Landscape?
Real Estate Forum (06/06) Vol. 61, No. 6, P. 58; Douglas, Danielle

Across the country, mixed-use developments are increasing in popularity as construction costs rise and more and more Americans search for convenience in their day-to-day lives. Within the last year alone, Property & Portfolio Research Inc. reports that some 5,500 mixed-use developments have entered the construction pipeline. The design concept has proven appealing to developers due to its potential for strong returns. Art Lomenick, managing director of Trammell Crow's High Street Residential subsidiary, remarks, "It's going to be the development pattern in the U.S. for decades to come. Mixed-use will eventually dominate the development landscape." The concept is far from new, as most U.S. downtown corridors have combined elements of offices, retail, and residential pretty much from the get-go. In more recent times, the promise of higher tax rolls has been the primary driving force behind the explosion of mixed-use projects in suburban settings. Not everyone is enthused, however, as some local governments remain leery of large-scale, mixed-use developments and some developers run up against community growth controls and higher infrastructure fees.
(Web Link- May Require Paid Subscription)
Return to Headlines

Fund Aims for $1B in Mixed Use
GlobeSt.com (07/05/06) Jarvie, Barbara

Phoenix Realty Group (PRG) has devised a plan to combat a problem common to New York, New Jersey and Connecticut: first-time home buyers who want to raise a family in the urban core near their workplace are finding those housing markets to be out of their financial reach. In response, PRG in conjunction with the Housing Partnership Development Corp. has created the $250 million Metropolitan WorkForce Housing Fund. By pairing up with community developers to make investments, the fund will be leveraged to provide more than $1 billion worth of workforce housing, commercial properties, and mixed-use projects within the three states. "At a time when the Tri-State region has experienced significant growth in jobs and population and tremendous inflation in housing costs, it's essential to increase the availability of housing that is affordable to the key middle-income workforce including teachers, office workers, firefighters and police," says PRG President Keith Rosenthal.
(Web Link- May Require Free Registration)
Return to Headlines

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
(Web Link)
Return to Headlines

In Alabama, the Hoover Planning and Zoning Commission is set to convene this month to decide on a proposal to bring a new mixed-use project to the city. Apple Development has proposed "The Grove," a retail and housing development that will include approximately 250 residences and a 550,000-square-foot shopping center. If approved, the development plan will then need the Hoover City Council to give the project the green light. So far, the development has received the support of Hoover Mayor Tony Petelos, who describes The Grove as a terrific way to bring revenue into the city. Petelos remarks, "We need to stay competitive because other cities like Alabaster, Trussville and even Bessemer are doing their commercial development, so we want to make sure that people are able to shop in Hoover." However, some residents remain concerned about the possible traffic congestion and drainage problems that may ensue.
(Web Link)
Return to Headlines

Developer Seeks Help From City (in Getting Massive Mixed-Use Project Off the Ground) (AZ)
Arizona Republic (07/04/06) Richardson, Ginger D.

Phoenix officials have agreed to at least negotiate with a development group looking to build CityScape, a $900 million mixed-use project on the southern end of downtown. The proposed high-rise project would contain four towers, approximately 1,200 condominiums, a 150-room boutique hotel, retail stores, an undisclosed amount of office space and as much as 100,000 square feet for a public plaza. The ambitious proposal would represent the biggest infusion of private funds to date for Phoenix's burgeoning downtown sector. The one sticking point is the developers' insistence that the project cannot proceed without the city's financial assistance. Negotiations are expected to take at least a couple of months, with developers hoping that portions of the project will open as early as 2008 when the first phase of light-rail comes online. At that time, the city's $600 million-plus expansion of the Phoenix Convention Center should also be complete. CityScape is the brainchild of RED Development of Scottsdale, Florida-based Barron Collier Cos. and former Phoenix deputy housing director Donald Cardon.
(Web Link- May Require Free Registration)
Return to Headlines

Developers Creating Destination Centers (That Incorporate Mixed-Use Designs) (AZ)
Phoenix Business Journal (06/23/06) Duff, Kerry

More and more national retailers are regarding Arizona as a potential growth state due to its booming population and its underwhelming variety of shopping choices. Not only are developers looking at traditional shopping centers and store sites, they also are looking to create mixed-use destination points for consumers that also incorporate housing, hotels and even sports and entertainment components. For example, DMB Associates is developing One Scottsdale in Scottsdale, which will feature 1.2 million square feet of offices, another 600,000 sq. ft. of high-end retail stores, three hotels and housing. Groundbreaking is set for early next year, with a fall 2009 grand opening for its retail and commercial components. Westcor, meanwhile, is developing several mixed-use destinations in the state, including the 300-acre Estrella Falls project.
(Web Link- May Require Free Registration)
Return to Headlines

Bay Area 'Smart Growth' Stunted (Meaning That More Mixed-Use Development Is Needed) (CA)
Contra Costa Times (CA) (06/28/06) P. F4; Russell, Kiley

The Greenbelt Alliance evaluated local governments in the San Francisco Bay area over a period of three months, focusing on housing density, mixed-use development, growth control and open space protection. In the newly released "Bay Area Smart Growth Scorecard," the group says there is support for smart growth but that cities and counties could do more to create walkable neighborhoods with affordable homes in close proximity to or in tandem with commercial options. David Reid of the Greenbelt Alliance insists that improvements need to be made soon to avoid more air pollution, traffic problems and open-space development. Open-space protection and growth management policies earned Alameda and Contra Costa counties favorable scores in the report. Even so, Contra Costa supervisor John Gioia believes local governments need to do a better job of working together when it comes to land-use regulations.
(Web Link- May Require Free Registration)
Return to Headlines

Monument Realty Picks Up Tiny Lot Near Stadium for $1.1 Million (DC)
Washington Post (07/03/06) P. D2; Hedgpeth, Dana

In Washington, D.C., Monument Realty Services LLC has inked a $1.1 million deal to acquire a 1,344-square-foot lot across from the city's new baseball stadium. Marion and Norman Pisner were the sellers. The locally based developer has spent some $50 million over the last year or so snapping up most of the land around the Pisners' lot. Monument Realty officials are planning a mixed-use project on land it owns at what will be the stadium's north entrance. That development will boast approximately 2 million sq. ft. of retail, residential and office space. Monument Realty Vice President Russell Hines called the Pisner lot "the last piece of land. It would have been unfortunate if we hadn't gotten this."
(Web Link- May Require Free Registration)
Return to Headlines

Developers Win Battle in Condo War (Centering on a Mixed-Use Project in Florida) (FL)
Miami Herald (06/25/06) Daniel, Trenton

In Florida, the Overtown Planning Advisory Board has recommended that developers of the controversial Crosswinds project be granted a special permit that would enable them to build 1,050 multifamily units, 75,000 square feet of retail space and more than 1,500 parking spaces on Northwest Second Avenue. Critics of the mixed-use development worry that lower-income and long-time residents will be pushed out of Overtown because they cannot afford to spend upwards of $300,000 to purchase the Crosswinds units. However, the developers insist that 200 of the units will be reserved as affordable housing, and the city will be given 50 of the units. The remainder will fetch $130,000 to $300,000 apiece.
(Web Link- May Require Free Registration)
Return to Headlines

$500M Transit Village Ready to Roll (in New Jersey) (NJ)
GlobeSt.com (07/12/06) Peterson, Eric

Somerset Development LLC has received the okay from the Wood-Ridge, N.J., planning board to build a mixed-use community on 67 acres of the former Curtiss-Wright Industrial complex. The $500 million Wesmont Station will have the "transit village" designation, featuring 737 residential units, 130,000 square feet of retail and commercial space, parking, a town square, a middle school and a 1,000-seat bandstand near NJ Transit's new Bergen Line commuter rail station. "This development creates a sense of community by permitting civic and commercial buildings to co-exist with nearby homes," says DMR Architects President and CEO Lloyd Rosenberg, whose firm created the site plan. Wesmont Station is expected to take eight years to complete and will be built in five phases.
(Web Link- May Require Free Registration)
Return to Headlines

Don't Have a Downtown? No Problem: Just Build One (NV)
Investor's Business Daily (06/20/06) P. B3; Alva, Marilyn

MGM Mirage continues to rank as the largest gaming operator on the famed Vegas Strip in Nevada. Now, it is looking to expand in the market with other real estate opportunities. CFO Jim Murren states, "Billions and billions of dollars over the next 10 years will be injected into this market by ourselves and outside investors. We're going to literally build a new city." Mixed-use development will play a large role. MGM Mirage's Project CityCenter, for instance, is on track for a 2009 grand opening. Located on a 66-acre parcel of land the company owns adjacent to the Bellagio, it will boast approximately 3,000 upscale condominiums and some 500,000 square feet of retail and entertainment space. Three hotels will also be in the mix, two of which will not have any casinos at all. Such development is part of MGM Mirage's strategy of reaching out to a broader pool of customers, as more than 50 percent of the company's annual revenue is generated from such non-casino business as hotel rooms, food and beverage sales and retail.
(Web Link- May Require Paid Subscription)
Return to Headlines

Changing Face of Queens: From Small Asian Shops to High-End Stores (NY)
New York Times (06/28/06) P. C11; Gregor, Alison

Nearly 1.3 million square feet of retail space is now being planned in at least three major mixed-use developments in Flushing, N.Y. A few hundred thousand square feet of new offices also are in the works. Downtown Flushing is at the center of much of this new development. There, office condominiums are currently the rage, with the 12-story Queens Crossing building now being built with a waiting list of more than 200 businesses. Queens Crossing would be dwarfed by the Flushing Commons project being planned just a block away. The nearly 2-million-sq.-ft. development will offer some 500 residential units and approximately 350,000 sq. ft. of new stores when it is completed four years after receiving the necessary approvals. Nearby, the Muss Development Company is busy with the construction of another massive mixed-use project that will include 1,000 residential units and an 800,000-square-foot shopping center. That project's first phase is on track for a 2008 completion at the earliest. Flushing is emerging as a pan-Asian enclave that is the first stop for many immigrants from China, Korea, Malaysia and elsewhere in the Far East. As a result, retailers that already have a substantial presence in Asia will be comfortable opening new outlets in Flushing.
(Web Link- May Require Free Registration)
Return to Headlines

Pittsburgh Tabs Waterfront Designers (for New Mixed-Use Project) (PA)
Houston Chronicle (07/10/06) Cowden, Michael

RiverParc--a team of architects and developers from Germany, Canada, Denmark and Pittsburgh--has been chosen by the Pittsburgh Cultural Trust to design a mixed-use community along the downtown waterfront. The consortium, one of a dozen to compete in the design contest, is headed by developer Concord Eastridge. The Cultural District Riverfront Development will be the first mixed-use, eco-friendly arts and residential project in the United States, intended to stop the exodus of residents and businesses from the downtown area. It will feature 700 apartments, lofts and townhomes; 160,000 square feet of retail space; a 45,000-sq.-ft. arts venue; and a 225-room luxury hotel. Ground will be broken on the residential component by the middle of next year, with the first units ready for residents in approximately two years.
(Web Link- May Require Free Registration)
Return to Headlines

Berwyn Plan Would Replace Housing (With a Mix of New Residential and Retail) (PA)
Philadelphia Business Journal (07/02/06) Kostelni, Natalie

ARC Wheeler wants to develop a new mixed-use project on 13.5 acres in Berwyn, Pa.--part of Philadelphia's Main Line community--where homes already are in place. To proceed with its $100 million plan, the firm would have to purchase 14 homes in the targeted area. It is said to have acquired options on a dozen of them already. Although the plans are still in the early stages, ARC Wheeler intends to replace the existing housing with an estimated 175 homes, consisting of a blend of garden-style flats, townhomes and single-family units. It also proposes to develop between 10,000 and 30,000 square feet of light retail space. Because of its proximity to a Southeastern Pennsylvania Transit Authority (SEPTA) train station, the site is key to its plan to build a transit-oriented development. Such projects concentrate mixed-use development--everything from housing to commercial space to such government projects as schools and township buildings--around public transportation that usually is within walking distance.
(Web Link- May Require Free Registration)
Return to Headlines

Large Mixed-Use Development Planned for Northwest (TX)
Austin American-Statesman (07/17/06) Morton, Kate Miller

Pacific Summit Partners is looking to transform an empty field in northwest Austin into one of the densest mixed-use projects in Central Texas. The group plans to build as many as 3,000 homes in addition to approximately 150,000 square feet of retail space. Dubbed Lakeline Station, the $400 million project is expected to take up to eight years to complete. The residential portion of the project will include as many as a dozen different types of housing choices--from townhouses and condominiums to single-family residences clustered adjacent to a coming train station. Pacific Summit principal Steven Levenson states, "The nature of transit-oriented development is diversity. It's having homes of all shapes and sizes and people of varied income levels living in the same environment." Retail will be of the neighborhood shopping variety, meaning coffee shops and dry cleaners as opposed to big-box stores like Wal-Mart.
(Web Link- May Require Free Registration)
Return to Headlines

© Copyright Information, Inc.

The links at the end of each abstract are to the publisher, publication, or article. Some links may require registration or subscription. Information, Inc. is not affiliated with the referenced publications.

To subscribe, unsubscribe or change your email address, please email NAIOP at mixeduse@naiop.org

To inquire about sponsoring this newsletter, please contact Christopher Ware at (800) 666-6780.