Development Magazine Winter 2014

Development - Ownership

New and Noteworthy

drawing of a new health care project

$1.2 billion

Construction began this fall on the 228-acre Union Village, the largest health care project in the world and the only complex of its kind in the U.S., according to project founder Craig Johnson. The Henderson, Nevada, “health village” will integrate state-of-the art technology and environmental sustainability into a world-class health care center, which in turn will be integrated into a live, work, play community featuring retail, entertainment and cultural uses as well as “smart” senior housing and other residences. The project’s first phase — an acute-care hospital now underway and a medical center — is expected to open at the end of 2016.  

drawing of a new mixed-use project

[Courtesy of Swire Properties]

$1.05 billion

At 5.4 million square feet, downtown Miami’s $1.05 billion Brickell City Centre is the largest mixed-use project under construction in the U.S. The complex, which is being developed by Swire Properties Inc., will include underground parking as well as two office buildings, residential, hotel, retail and entertainment uses. Law firm Akerman will be the lead office tenant; in October, the firm signed the largest corporate lease transaction in Miami this year, agreeing to occupy 180,000 square feet at Brickell City Centre Green when it is completed in 2015. Saks Fifth Avenue will anchor the retail space. The first residential tower, Reach, is over 70 percent sold and the second office building, known simply as Two, will be completed in 2016. 

drawing of a new office park

1.5 million sq. ft.

Valley Ranch Commerce District, a new office park in the Houston area to be developed by The Signorelli Company, will contain 1.5 million square feet of office space, a full-service hotel and conference facilities. The park, which will be set on 70 acres at the intersection of the Grand Parkway and Highway 59, immediately north of Kingwood, Texas, will feature a campus-style setting, elaborate green space with water features and jogging trails. It will be part of the 1,400-acre Valley Ranch master-planned community and will be leased by Transwestern.

drawing of a new office tower

1.2 million sq. ft.

Hines will begin development soon on 1144 Fifteenth Street, a new speculative office tower in downtown Denver. The 40-story office tower will hold 27 floors of Class A office space atop a 13-story podium featuring shops, restaurants, a fitness center and an 880-space parking garage that also will include ample parking for bicycles when the project opens in 2017.  Designed by Pickard Chilton, its massing will reflect the peaks of the nearby Rockies. It is expected to open in 2017 and to be certified LEED Gold.

drawing of a new mixed-use project

848,000 sq. ft.

Drexel Town Square, a new mixed-use project in Oak Creek, Wisconsin, in the southeastern corner of Milwaukee County, will create a new “downtown” for the city of about 34,000 residents on what was once the site of a 1950s-era manufacturing and technology development center. WISPARK LLC, the real estate development subsidiary of Wisconsin Energy Corporation, is transforming the 85-acre property, which it acquired in August 2011, into a hybrid suburban/neo-urban town center featuring 848,000 square feet of retail, office, education, residential and civic uses. The project is being funded in part by a tax increment financing (TIF) district set up by the city of Oak Creek. 

drawing of a new office development

600,000 sq. ft.

A new office development on a two-acre site on Pittsburgh’s North Shore, next to PNC Park, could be a game changer for the city’s office market. The initial design, which has not yet been approved, includes two 11-story glass towers resting atop an elevated green plaza on the roof of a new five-story, 1,227-space parking garage situated between two Marriott hotels.  According to Kim Clackson, senior vice president with CBRE, which is marketing the project for developers Merrill Stabile and Alco Parking, “the final size and shape of these buildings will depend largely on the needs of whoever anchors this project.”

drawing of a new health care center and office building

Courtesy of Francis Cauffman

180,000 sq. ft.

Construction is expected to begin in the spring on 620 Fulton, a 12-story, 180,000-square-foot health care center and office building in the emerging Downtown Brooklyn Cultural District. The Francis Cauffman-designed building, which will be developed by the New York City Hotel and Hotel Trades Council’s Employee Benefit Funds, will be the fourth building in the city to provide health care for the union’s hotel workers. In addition to the 65,000-square-foot health center, it will contain 70,000 square feet of office space, 40,000 square feet of which will be leased to an outside tenant, as well as retail space, a restaurant and public amenities. The project is targeting LEED Silver certification. 

drawing of the open space for a new mixed-use community

104 acres

Duke Land Group plans to develop Riverwalk Village, an ecologically driven mixed-use community in Roswell, Georgia, as a seamless extension from the Chattahoochee National Parkway. Preliminary plans call for approximately 1.7 million square feet of office space; 490,000 square feet of general commercial space, including stores, restaurants and entertainment uses; 1,500 residential units; a 200-key hotel; and 200,000 square feet of civic and institutional space. Approximately 43 percent of the land will be preserved as open space, which will include parks and other public spaces as well as walkways and a system of public trails that will connect the village and surrounding neighborhoods to the Chattahoochee River. The projected value of the community at buildout is $500 million. Pending zoning and permits, construction is expected to begin by the fourth quarter of 2015.

drawing of a new corporate campus

46 acres

Federal Realty’s Assembly Row is a 46-acre master-planned neighborhood and corporate campus unfolding along the Mystic River seven minutes from downtown Boston. Once home to a Ford Motors Assembly Plant, the Row is served by its own MBTA Orange Line Station and already boasts more than 300,000 square feet of streetfront retail space and 100,000 square feet of LEED Gold-certified, tech-focused office space as well as restaurants, 450 apartments, a theater and a six-acre riverfront park. Partners HealthCare broke ground in October on an additional 800,000 square feet of office space that will house its administrative workforce as well as more retail space.

From the Archives: Development Ownership Articles from the Previous Issue

rendering of three new buildings and one current building

Brandywine Realty Trust: “Make No Little Plans” 

Brandywine Realty Trust closed 2013 with the best results in its 20-year history. Using a multiyear portfolio repositioning strategy, it pivoted almost seamlessly from its suburban office roots of the 1990s to focus on urban centers. Today, its urban and town center properties (those located in mixed-use areas and/or with access to transit) represent 48 percent of its portfolio and over 67 percent of its net operating income.

office building at night

DaVita World Headquarters: New Corporate Office Tower Promotes Healthy Living 

Situated at the base of Denver’s Millennium Bridge, across from Denver Union Station, sits DaVita’s new corporate headquarters. The iconic building, standing 14 stories in the Central Platte Valley District, has reshaped the downtown skyline and set a new precedent for world-class office accommodations.