Mixed-Use Development Newsbriefs

National News and Trends
Putting It Together (Is What Perot Jr. Does in Crafting New Developments)
Mixed-Use Developers Create Open Spaces for Community
Balancing Act: Mixed-Use Resorts Create Management Challenges
NAIOP Mixed-Use Summits In San Jose, Calif. and Atlanta, Ga.
Exceptional Mixed-Use Projects, Volume 1 Now Available

Regional News
Downtown L.A. to Finally Get $1.8B Mixed-Use Redevelopment (CA)
Real Estate: Developers Show Interest in SW Waterfront (of the Nation's Capital) (DC)
State OKs $110M Plaza Collina in Lake County (FL)
'Magic' Johnson Wants to Build $171 Million Condo in Little Havana (FL)
Babcock Sprawl Threatens Old Florida (FL)
Growing Into a Community: Developer Says Mixed-Use Concept Is More Than Just Houses and Apartments (IA)
New Urbanist-Style Architect Sets His Sights on New Orleans (and Touts Mixed-Use in the Process) (LA)
JV Proposes $1B Canyon Ranch Development (in Maryland) (MD)
Wilf Proposes Helping to Rebuild Metrodome Area (MN)
Retail Building Boom Boosts Region's Vacancy Rate (With Stores Being Bundled Into Mixed-Use Projects) (MO)
Twin Towers Slated for Downtown Site (Bringing Mixed-Use to Raleigh) (NC)
Centex Breathes New Life Into Urban Village (NV)
New Group Takes Over Fairview Property (in Oregon) (OR)
Northwest Triangle Begins to Take Shape (in Pennsylvania) (PA)
Student Housing Leads an Urban Turnaround (in Philadelphia, and Mixed-Use Factors In) (PA)
East Providence Waterfront Eyed for Mixed-Use Plan (RI)
Blanco River Project Includes Condos, Retail (and Could Be a Model of Mixed-Use in Lone Star State) (TX)
Mandarin Hotel to Beef Up Project Outside of Dallas (TX)

National News and Trends

Putting It Together (Is What Perot Jr. Does in Crafting New Developments)
Commercial Property News (05/01/06) Vol. 20, No. 9, P. 29; Gilligan, Eugene

Hillwood Chairman Ross Perot Jr. often talks about his company's developments in parental terms, like when a father speaks glowingly about a son or daughter. One of Hillwood's most ambitious projects to date is the $3 billion Victory mixed-use park in Dallas, which is playing a key role in that city's downtown revitalization. Mixed-use developments are nothing new to Perot Jr. One of his best-known developments is the mixed-use AllianceTexas in nearby Fort Worth. These and other large-scale projects elsewhere have come together largely via public-private partnerships. Bob Bolen worked closely with Perot on AllianceTexas during his five terms as Fort Worth's mayor. He calls Perot a "master" at "getting a city and his company to work together on a project." For his part, Perot remains humble and focused on the work at hand. He comments, "We're not merchant builders, who are on a build-and-sell treadmill. We want to build developments that have long-term value."
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Mixed-Use Developers Create Open Spaces for Community
Austin Business Journal (05/12/06) Gosdin, Greg

More and more consumers and tenants of mixed-use developments are seeking an "experience" with these projects. This, in turn, has placed more pressure on developers of mixed-use space to come up with designs that prove appealing to patrons who will be spending a substantial amount of time working, living and shopping in the areas they create. Chris Ellis, a principal with Endeavor Real Estate Group LLC, says the key is to create mixed-use projects that captivate. He explains, "We want to create something with a better feel than just parking in a sea of asphalt and walking around inside a big air-conditioned box." One way to deliver "captivating" experiences is to take advantage of open spaces. More and more developers of mixed-use space are incorporating everything from biking paths to hiking trails into their design plans. Fountains, gardens, and even outdoor music venues are also increasingly popular fixtures. Ellis notes that other amenities to consider include ponds, children's playgrounds, and as many trees preserved as possible.
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Balancing Act: Mixed-Use Resorts Create Management Challenges
Developments (05/06/06) Vol. 28, No. 4, P. 76; Grogg, Jeremy S.

Mixed-use resorts have advantages for both guests and developers, as well as pitfalls and challenges for resort managers. Such properties can combine whole-ownership and timeshare units , hotel and timeshare, or a combination of all three. Operational efficiencies and an ongoing revenue stream make these properties especially attractive to developers. On the negative side, however, accounting is more complicated due to the fact that expenditures must be charged in the correct proportion to each payer. In addition, guests' varying needs must be met in a way that is appropriate to each type. By this token, it is vital for a mixed-use resort's front-desk staff to understand that checking in a hotel guest calls for a different approach than that used with an exchange guest or timeshare owner.
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NAIOP Mixed-Use Summits In San Jose, Calif. and Atlanta, Ga.

Our nation's biggest developers are jumping on the mixed-use trend! Join us for NAIOP's popular upcoming Mixed-Use Summits at Santana Row in San Jose, Calif. (June 20-21) and Atlantic Station in Atlanta, Ga. (June 27-28).
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Exceptional Mixed-Use Projects, 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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The Related Companies is spearheading a $1.8 billion revitalization of downtown Los Angeles' Grand Avenue district. The project calls for retail stores, restaurants, a luxury hotel and upwards of 2,000 residential units that will be erected in three phases. Development is expected to take at least seven years. For phase one, renowned architect Frank Gehry is planning two towers. The first will boast a hotel, spa and 250 condos. The second building will offer 150 condos and 100 units of affordable housing. Also part of the mixed-use project will be a 16-acre public park. Derrick Moore, a senior associate in CB Richard Ellis' Urban Redevelopment Group, applauds the project. He states, "The demand on available spaces is huge. Just a year ago, we weren't seeing national names come."
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Real Estate: Developers Show Interest in SW Waterfront (of the Nation's Capital) (DC)
Washington Post (05/02/06) P. D4

A total of 17 development groups have expressed interest in transforming a portion of Washington, D.C.'s Southwest waterfront, reports the Anacostia Waterfront Corp. The quasi-government group is overseeing the effort to bring a massive mixed-use project to that section of the District's waterfront. Plans for the site include a mix of retail stores, apartments and entertainment venues. The 17 development groups are primarily from the D.C. metro area and include such big names as Akridge, Carr Enterprises and the Cordish Co. A panel of three AWC members will now evaluate the various proposals and decide on a winner or whether to undergo a formal procurement process.
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State OKs $110M Plaza Collina in Lake County (FL)
GlobeSt.com (04/24/06) Finkelstein, Alex

The Florida Department of Community Affairs has approved Phonecia Development LLC's plan to build a $110 million mixed-use project on State Road 50 in Clermont. Plaza Collina will boast the biggest open-air shopping center in Lake County, encompassing 1.2 million square feet. The more than 142-acre development also will feature 80,000 sq. ft. of additional retail space, 250,000 sq. ft. of mixed-use space and 200 townhomes. Despite the state and county's approval of the project, the Clermont City Council continues to oppose development due to traffic concerns. Developers could face tougher building restrictions when Clermont annexes the site later this year. Plaza Collina is slated for completion in 2010, with the first of three phases to begin later this year.
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'Magic' Johnson Wants to Build $171 Million Condo in Little Havana (FL)
Local10.com (Fla.) (04/27/06)

In Florida, Miami officials are set to vote on a $171 million mixed-use project proposed by former Los Angeles Lakers player Earvin "Magic" Johnson. Located in Little Havana, Intown Village would feature 395 condos and approximately 34,000 square feet of commercial retail space in a pair of 19-story towers. The residential units would be priced between $200,000 and $400,000. Johnson needs to obtain a major use special building permit from the city because the project is comprised of more than 200 housing units.
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Babcock Sprawl Threatens Old Florida (FL)
News-Press (FL) (04/17/2006) Deslatte, Aaron

Developer Syd Kitson hopes to purchase the 91,000-acre Babcock Ranch in Florida's Lee and Charlotte counties, selling a portion of the rural property to the state and building a mixed-use, "self-sustained" community on the rest of the land. Kitson envisions 17,000 homes plus retail space, golf courses, horseback trails and schools. The plan would put an additional 100,000 or more cars each day onto two-lane roads in Lee and Charlotte counties--a move that angers residents of the nearby Bayshore community who moved to the area for its rural character. They are worried that more farmland will be gobbled up by development if the nearby roads are widened. Though the Florida Department of Community Affairs deemed Babcock Ranch to be urban sprawl, state law allows such projects to proceed as long as developers implement pedestrian-friendly, new urban designs.
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Growing Into a Community: Developer Says Mixed-Use Concept Is More Than Just Houses and Apartments (IA)
Muscatine Journal (05/12/06) Rugg, Peter

In Muscatine, Iowa, the Riverbend mixed-use project now in development is aiming to be more than just a group of homes and apartments. Realtor Brandon Pratt of Ruhl & Ruhl states, "We really are trying to develop a community. Somewhere where you start out in an apartment, and as you grow older and you have a family, you can move into a duplex or a home and have everything you want in that neighborhood." By the time the seven-phase project is finished by Dovetail Companies Inc., the 160-acre development will boast 220 single-family residences and between 175 and 225 rental apartments and for-sale condos. Some of the community has already been completed, with lots having been for sale for a couple of years. The development also currently includes a small commercial component that includes a service station and convenience store. As construction work advances, Dovetail anticipates the addition of a strip shopping center so that residents will have retail options within walking distance.
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New Urbanist-Style Architect Sets His Sights on New Orleans (and Touts Mixed-Use in the Process) (LA)
Wall Street Journal (04/26/06) P. B4; Herrick, Thaddeus

Renowned architect Andres Duany of Duany Plater-Zyberk & Co. hopes to lead the rebuilding of New Orleans, proposing new urbanist designs for Gentilly. Duany believes Gentilly should rebound from Hurricane Katrina with mixed-use development, including projects that would convert a strip mall into a town center and a business park into a high-density workplace. There are concerns about how much such development would cost and whether it would eliminate New Orleans' history and character. However, Duany asked residents, "The question is whether you want to go back to Aug. 28 [before Katrina struck] or into the 21st century?"
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JV Proposes $1B Canyon Ranch Development (in Maryland) (MD)
GlobeSt.com (04/27/06) Murray, Barbra

Canyon Ranch of Tucson, Ariz., has joined forces with Tysons Corner, Va.-based Penrose Group to build a mixed-use project with residential units and a wellness center near I-270 in Bethesda, Md. Canyon Ranch Living-Bethesda will be comprised of a 157-room hotel, 434 condominiums, 87 apartments, a restaurant and a 90,000-square-foot wellness center. The residential units will be located in a pair of 20-story towers. The project is slated for completion in 2008. Another Canyon Ranch Living community is presently under construction in Miami Beach.
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Wilf Proposes Helping to Rebuild Metrodome Area (MN)
WCCO.com (04/21/06)

Minnesota Vikings owner Zygi Wilf is pushing to play a role in the redevelopment of the Metrodome area. He is lobbying Minnesota's Legislature to approve his plan to build a $1.6 billion football stadium and mixed-use project in the Minneapolis suburb of Blaine. Wilf contends that if developed properly, the "outdated" Metrodome and Minneapolis' "renaissance" waterfront area could be bridged. Wilf, a real estate magnate from New Jersey, states, "I speak as a developer. It is a great opportunity to create an area there with a mixed-use park system, residential and retail." Under his plan, Wilf and partners will invest $1 billion in the proposed project. They also are seeking an estimated $600 million in public funds.
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Retail Building Boom Boosts Region's Vacancy Rate (With Stores Being Bundled Into Mixed-Use Projects) (MO)
St. Louis Business Journal (04/28/06) Van Housen, Caty

The St. Louis metro area has seen a boom in new retail development, which in turn has pushed up vacancy rates to 10 percent. Colliers Turley Martin Tucker reports that almost 5 million square feet of new neighborhood and community shopping centers have been added to the market since 2000, with development surpassing absorption by a nearly 2-to-1 margin. Mixed-use projects are accounting for much of the new retail being added locally. The highlight of downtown St. Louis' ongoing retail resurgence is the Bottle District, an 18-acre mixed-use retail and entertainment complex now being built at a cost of $280 million. The $300 million Ballpark Village--with its mix of stores, offices and condos--is another major project nearby. Ted Martin, a principal in Colliers Turley's Clayton, Mo., offices, remarks, "Retail is all about keeping up with the trends, and with so much growth and activity, older-generation retail space is going to have a lot more vacancy than first-generation space. There are a number of people trying to ride the wave and react to the newer mindset of the consumer with new shopping center formats." He adds that if there is no strong anchor tenant in place, leasing the rest of the space will be problematic.
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Twin Towers Slated for Downtown Site (Bringing Mixed-Use to Raleigh) (NC)
NBC 17 (04/18/06)

Raleigh's City Council recently signed off on a memorandum of understanding with TMC Development Group LLC to develop downtown's biggest mixed-use endeavor. Under the plan, a 20-story tower and a 14-story tower would be erected on Raleigh-owned property just east of the city's old convention center site. The $130 million project would include 154 residential units, ground-floor retail space, restaurants and approximately 284,00 square feet of new offices. Additionally, the project would feature an underground parking facility with room for more than 630 vehicles. It is now up to the city and TMC to draft a formal development agreement.
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Centex Breathes New Life Into Urban Village (NV)
Las Vegas Business Press (05/03/06) Illia, Tony

Centex Destination Properties this month broke ground on the repackaged $1.5 billion "Urban Village" mixed-use project in Las Vegas. The company bought the 50-acre site and the project plans from Diversified Real Estate Group late last year. The project will be made up of five neighborhoods with buildings spanning up to a dozen stories. These structures will offer a mix of brownstones, flats, lofts, condo-hotel units and live-work spaces. In addition, the Urban Village will offer a number of stores and eateries, along with a fitness facility, parks and a swimming-pool complex. The project is slated to reach build-out within eight years.
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New Group Takes Over Fairview Property (in Oregon) (OR)
Salem Statesman Journal (OR) (04/22/06) Rose, Michael

A new group has assumed control of the Fairview Training Center in Salem, Ore., and will now be responsible for its completion. The 245-acre site is envisioned to become a model of mixed-use and environmentally friendly development. According to Sustainable Fairview Associates, local developer Phil Morford has established Fairview Community LLC and has acquired the property for an undisclosed sum. Morford stated, "Our goal is to hold true to the heart and vision of the master plan." The new master developer will submit plans for the site to city officials within the next few months. Up to 2,000 residential units have been proposed for the Fairview property, along with nearby offices and retail stores that will encourage residents to walk rather than drive as much as possible. The mix of residential and commercial components could cost as much as $350 million to complete, by some estimates.
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Northwest Triangle Begins to Take Shape (in Pennsylvania) (PA)
York Daily Record (PA) (04/13/06) Hoover, Mike

In Pennsylvania, the York Redevelopment Authority is in the process of purchasing Keystone Color Works, B&C Fasteners, and a trio of townhomes on N. Beaver Street for inclusion in the $100-million Northwest Triangle Initiative. The properties are located on a 29-acre stretch slated for redevelopment, with a mixed-use project comprised of 216,000 square feet of commercial space and as many as 45 townhomes in the works. In order to proceed with the project, the authority still needs to acquire the Thomas Sommerville, Weaver Auto Body, York Rail and Alfa Green businesses; select a developer; relocate a rail-line on the property; and secure an $8-million capital improvement grant from the state. The Northwest Triangle could create 500 jobs and generate over $4 million in revenue over two decades.
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Student Housing Leads an Urban Turnaround (in Philadelphia, and Mixed-Use Factors In) (PA)
New York Times (05/03/06) P. C8; Pristin, Terry

Temple University once was a commuter school in the struggling North Philadelphia neighborhood, but developers have become increasingly interested in the area now that the institution has made the shift to a residential campus. "The student housing has created an environment that's going to bring in retail development that is needed by the community," says City Councilman Darrell Clarke. Temple no longer is building student housing itself, depending on private developers to make such units available. Tower Investments, for instance, is building an $80 million mixed-use project on a city-owned parcel at Broad Street and Cecil B. Moore Avenue. The building will house 1,200 students and feature 93,000 square feet of retail space, including a movie theater and a Bank of America branch. The furnished apartments will have private bathrooms, flat-screen televisions and other amenities and cost each student $500 per month.
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East Providence Waterfront Eyed for Mixed-Use Plan (RI)
Providence Business News (RI) (05/11/06) Sayles, Justin

In Rhode Island, Picerne Real Estate Group has inked a deal to redevelop a portion of East Providence's waterfront. The plan is to transform a brownfields site into a thriving, mixed-use project that will boast a substantial residential component. The three-parcel property spans 26 acres and currently houses a terminal formerly owned by Chevron U.S.A. and used by Cumberland Farms and Gulf Oil. Picerne executive vice president Ray Uritescu commented, "Even though formal plans are not finalized at this time, we know we will offer a mixed-use development that best accommodates the unique characteristics of the waterfront and is consistent with the community's expectations for property growth and development on that parcel." City officials have been actively promoting the 14-mile waterfront's redevelopment for some time now. Nearby, two locally based firms--The Peregrine Group and Kirkbrae Development--are redeveloping a former chemical plant into a mixed-use development that will include office, residential and retail space.
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Blanco River Project Includes Condos, Retail (and Could Be a Model of Mixed-Use in Lone Star State) (TX)
San Marcos Daily Record (04/18/06)

Blanco River Development Co. is planning a massive mixed-use project in San Marcos, Texas. Dubbed Blanco Riverwalk, the development will feature 765 residential units, three hotels, approximately 895,000 square feet of retail and entertainment space and another 400,000 sq. ft. of medical facilities. The Arizona-based developer still needs to secure capital and win rezoning for the project. If it is successful, Blanco Riverwalk will occupy 239 acres near the Blanco River on the city's north side.
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Mandarin Hotel to Beef Up Project Outside of Dallas (TX)
Wall Street Journal (05/10/06) P. B12; Herrick, Thaddeus

Victory Park, a $3 billion mixed-use development near downtown Dallas, last week received a huge boost by landing the region's first Mandarin Oriental Hotel. The 75-acre project is spearheaded by Ross Perot Jr.'s Hillwood and ranks as one of the country's most ambitious large-scale developments. The Mandarin Oriental Dallas would serve as Victory Park's second major upscale hotel, joining a W Hotel already on track for a June 15 grand opening. In addition to that lodging, two mid-rise residential towers are slated for a fall 2006 opening, along with a retail and office plaza. The master plan calls for approximately 12 million square feet of commercial and residential space. Construction on the Mandarin is scheduled to commence in the first quarter of 2007, with a 2009 grand opening planned.
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