Mixed-Use Is Mainstream
Profiles of mixed-use cite different projects in all areas of the country.
Jaime Lackey

From small towns to big cities, mixed-use projects are going up everywhere as developers and municipalities try to maximize land use. Mixed-use has caught on as a property type that satisfies a lot of needs in a relatively small amount of space. In our pages, we have covered more than 150 mixed-use projects so far during 2007. Mixed-use is more than a trend; it is the future of retail. The following pages depict everything from malls converting to mixed-use to new, ground-up mixed-use developments to give you a feel for what is taking place across the country.

The Yards
Washington, D.C.

The Yards

On the Anacostia River in southeast Washington, D.C., Forest City is redeveloping Southeast Federal Center into The Yards, a 42-acre project that will consist of 30 buildings — some new construction and some adaptive reuse of historic industrial buildings that were originally part of the historic Washington Navy Yard Annex.

The $1.7 billion project will have 1.8 million square feet of office space, 300,000 square feet of retail space and 2,800 residential units, including townhomes, luxury condominiums and apartments. (Thirty-five percent will be affordable housing).

The project broke ground in October. The first phase components — including a retail building, an apartment building, an all-new office and residential building, and a condo building — are slated for completion in 2009 and 2010.

The General Services Administration (GSA) owns the property, and Forest City is purchasing the site, parcel by parcel over the next several years. Clark Construction is the general contractor. Architecture firms contributing to the project include Shalom Baranes Associates, SK&I, Robert AM Stern, SMWM and Gensler. Forest City is handling retail leasing; CB Richard Ellis will lease the office space.

“This is a choice piece of property in one of the most vibrant markets in the country,” says Deborah Ratner Salzberg, president of Forest City Washington. “Seventy thousand jobs were added last year alone. To have this much land available within the District of Columbia — in walking distance of Capitol Hill — is unheard of. It is situated on the water, making it ideal for development of a public marina and riverfront park. It is adjacent to the new baseball district with its new stadium for the Nationals, opening in 2008. And finally, the Metrorail transit system lies at the northern edge of the site, giving it excellent access.”

Salzberg adds, “The main retail district will be located on Tingey Street, activated so that baseball fans will have a place to go for dining and shopping before or after the game.”

Midtown Crossing at Turner Park
Omaha, Nebraska

In Omaha, Nebraska, ECI Investment Advisors Inc. is developing Midtown Crossing at Turner Park for East Campus Realty, a wholly owned subsidiary of Mutual of Omaha.

“Midtown Crossing is the only true mixed-use development in the area,” says Jim Nolan, director of corporate communications for Mutual of Omaha.

In addition, Midtown Crossing is one of 60 projects to be selected for the LEED Neighborhood Development pilot program. “It is the only project in Nebraska to be selected for the pilot,” Nolan says.

The 15-acre project is bordered by 31st, 33rd, Dodge and Harney streets. It will include 220,000 square feet of retail space, 297 for-sale residential units and 268 apartment units, as well as a corporate extended-stay component and parking for more than 3,000 vehicles. The development is situated around 7 acres of green space in an expanded and revitalized Turner Park, which will host community-focused events such as art fairs and farmers’ markets.

Groundbreaking for the $300 million project was in September; the project is slated for completion in the fourth quarter of 2009.

Philadelphia-based Cope Linder Architects is the project’s design architect. Omaha-based Holland Basham Architects is the project’s executive architect.

CB Richard Ellis is handling retail leasing at the project. Douglas Theatres will operate a five-screen, 49,000-square-foot upscale movie theater with in-seat dining and beverage service — a first for the market, says Nolan. Prairie Life Fitness will operate a 31,000-square-foot executive fitness center. Plans also call for an urban grocery store, a variety of pedestrian-friendly retail and specialty food establishments, and a mix of dining and entertainment venues.

“Downtown Omaha has undergone a resurgence in urban living,” Nolan notes. “There are more than 11,000 housing units with almost 30,000 residents in a very dense 3.6-mile area. The Midtown Crossing site has a traffic count of 50,000 vehicles per day, and it is located adjacent to some of Omaha’s largest employers, including three Fortune 500 headquarters.”

Natick Collection
Natick, Massachusetts

Natick Collection

In Natick, Massachusetts, General Growth Properties has redeveloped the former Natick Mall, which was built in 1966.

The project now features 1.7 million square feet of retail space, and it will have a total of 215 residential condominiums. The grand opening for the retail component was in September, and the residential component will open in summer 2008. Future plans call for a high-rise hotel on the site.

Natick Collection is the largest mall in New England, featuring 270 retail stores, including the first Nordstrom in Massachusetts. Other retailers include JC Penney, Lord & Taylor, Macy’s, Sears, Neiman Marcus, Louis Vuitton, Gucci, Ralph Lauren, Burberry, Tiffany and Kate Spade. Restaurants include The Cheesecake Factory, Sel de la Terre, Metropolitan Bar & Grill, Finale Desserterie and California Pizza Kitchen.

Residents of Nouvelle at Natick will have access to Bosse Nouvelle, an on-site fitness center operated by Bosse Sports; Parc Nouvelle, a private 1.2-acre roof garden featuring a boardwalk and two putting greens; and Club Nouvelle, which features a library, multi-media screening room, billiards, private dining room and a wine bar with a piano lounge.

ADD Inc. is the architecture firm for the residential component; Beyer Blinder Belle was the architecture firm for the retail component. Dimeo Construction Company is the general contractor for both. Otis & Ahearn is the sales and marketing consultant for the residential component.

University Marketplace
Durham, North Carolina

University Marketplace

In Durham, North Carolina, Hawthorne Retail Partners Inc. and Crescent Resources LLC are developing University Marketplace, a $75 million, 14.85-acre project that will feature 115,000 square feet of retail as well as 310 apartment units. The project will be located at the site of the existing Regency Plaza.

According to Shoffner Allison of Hawthorne Retail Partners, “University Marketplace is a redevelopment of a 25-year-old grocery-anchored shopping center that is functionally obsolete and 95 percent vacant.”

Construction will begin in May 2008 with completion slated for May 2009. The redeveloped property will have four-sided orientation with 1,000 feet of frontage on University Drive as well as a new entrance from University Drive. “This will dramatically improve the access and visibility of the development,” Allison says.

Hawthorne is developing the retail component, and Crescent is developing the residential component, which will be LEED-certified. Cline Design is the architect. GRE Regency LLC owns the project.

“We expect to have two anchors of approximately 20,000 square feet and 75,000 square feet of shops. We are targeting a specialty grocer and bookstore/apparel as the anchors. The shops will be a mixture of national, regional and local restaurants, apparel and specialty shops,” says Allison, who is leasing the retail component.

The project is next to a center with Super Target, Ross Dress For Less, Petco, Sam’s Club and Office Depot.

“The development is located 2.2 miles from Duke University (which has 10,000 students and 37,000 employees), and it is surrounded by 1 million square feet of retail and by Durham’s wealthiest neighborhoods,” Allison notes, “but the area lacks a retail offering beyond a typical strip center.”

Brooklyn Park
Jacksonville, Florida

Brooklyn Park

In downtown Jacksonville, Florida, Atlanta-based Miles Development Partners and TerreMark Partners LLC are developing Brooklyn Park, a 12-acre project with 13 buildings containing 800 apartment units, 150,000 square feet of retail, two hotels with a total of 240 rooms, and an office component. The project will also have a 1-acre park.

Brooklyn Park is an in-fill project located on Riverside Avenue, Jacksonville’s dominant downtown thoroughfare, which runs along the St. Johns River.

Miles Development Partners owns the project, which is slated for a 2010 opening. Atlanta-based Cooper Carry is the architect for the development.

TerreMark is handling the retail leasing. The company is seeking a gourmet grocery store, upper-end amenities, retail and dining.

According to Craig Kaser, principal of TerreMark Partners, Brooklyn Park is the answer to growing retail demand in Jacksonville. He says, “Currently upper-end customers are underserved in Jacksonville and drive up to 1 hour to shop. This is primarily due to limited real estate for massing retail in downtown.”

He adds, “The retail focus [at Brooklyn Park] is serving the market demands and the identified retail niche with fashion, food and beverage, and entertainment uses.”

The Golden Triangle
Murrieta, California

The Golden Triangle

At the intersection of interstates 15 and 215 in Murrieta, California, The Garrett Group is developing The Golden Triangle, a 61-acre project that will feature 427,600 square feet of Class A office space and 385,300 square feet of retail space as well as restaurant space, an entertainment component, a hotel and conference facilities.

The first phase will break ground in third quarter 2008, with completion slated for fourth quarter 2009.

The project is a joint venture by The Garrett Group and Domenigoni-Barton Properties. SGPA Architects is handling the site design and retail architecture; BPA Associates is handling the office architecture. Jones Lang LaSalle will handle retail leasing and marketing.

“The retail component will combine inviting public spaces which include rich landscaping, artwork and shaded pedestrian connections, creating an exciting and accessible downtown Main Street ambiance tailored to appeal to the southern California customer. We’re looking at a merchandise mix that includes sit-down dining establishments, eateries, a bookstore, multi-screen cinema, fitness facility, a gourmet grocery store, and a lineup of apparel retailers, all typically found in lifestyle projects,” says Stephen King, COO of The Garrett Group.

“More than 203,000 cars pass this junction daily, representing more than 6 million potential shoppers each month,” according to King. “The Golden Triangle is located in Riverside County, which is the fastest growing county in California and the second fastest growing in the nation. Projections indicate the trade area population will increase by 23 percent in the next 5 years.”

He adds, “The Golden Triangle is ideally located — essentially equidistant to San Diego, Orange County, Los Angeles and Riverside.”

Burr Ridge Village Center
Burr Ridge, Illinois

Burr Ridge Village Center

Opus North Corporation is developing Burr Ridge Village Center, a $150 million, 20-acre “Main Street” project that will feature 203,000 square feet of retail, 37,000 square feet of office space and a residential component that features 50 lofts, 87 luxury condominiums and 59 estate condominiums.

The project is located at 501 Burr Ridge Parkway in Burr Ridge, Illinois, 20 miles from Chicago. “Its proximity to the Loop is ideal for young professionals who work downtown,” says Tim Thanasouras, senior real estate director with Opus North.

Opus Architects and Engineers Inc. and RTKL Architects are designing the project. The Pollard Group is responsible for the commercial retail leasing, and ER James is handling the residential sales.

Construction began in May 2006. The retail component is opening in November. The office space will open in January 2008. The residential component will open in March 2008.

Six of the seven buildings at Burr Ridge Village Center will have retail space.

Retailers include Kohler Water Spa, New York & Company, Ann Taylor LOFT, J. Jill, Chico’s, Coldwater Creek, Yankee Candle, White House/Black Market, Eddie Bauer, Banana Republic, Lucy, Clark’s, Starbucks, Victoria’s Secret, Lens Crafters, Ann Taylor, Swoozies, Sunglass Hut, Gymboree, and Bath & Body Works. Restaurants include Cooper’s Hawk and Topaz.

According to Thanasouras, “The high-end fashion retailers we are able to attract, along with the combination of teenage-focused retail such as Aeropostale and Limited Too, provide a multi-generational shopping experience. We also have very attractive restaurants with local flavor that provide entertainment and fine dining. Burr Ridge Village Center will be home to the third Kohler Water Spa in the world, which will certainly become a Chicagoland spa destination. The high income, dense population and good location in the area near I-55 and I-294 will make the generation of active sales possible.”

Town Brookhaven
Atlanta, Georgia

Town Brookhaven

In Atlanta, The Sembler Company is developing Town Brookhaven, a $72 million, 50-acre project that will have 600,000 square feet of retail space, 150,000 square feet of office space and 1,560 residential units.

The project is located on Peachtree Road, near the Brookhaven rapid transit station. It broke ground in October and is slated for completion in 2009.

Sembler co-owns the project with Stephen D. Bell & Co. MSTSD created the master plan, and Beck is the general contractor.

“The retail mix is the most important component of the project to ensure the center draws from a cross-section of demographics to attract people to live, work and play here,” says Amber Overby, Sembler spokesperson.

She adds, “The project will include a variety of retail concepts from a lifestyle section to ‘restaurant row’ featuring mostly locally owned establishments, big-box retailers and small shop boutiques and possibly a fitness facility.” Restaurants announced at the project include a number of strong local favorites like The Flying Biscuit, Nuevo Laredo Mexican Cantina, Rolling Bones BBQ, Atkins Park, Genki, San Francisco Coffee and Chow Baby.

Town Brookhaven will be a town center featuring local events and activities, including movie night on the lawn, an art gallery that showcases local artists, a seasonal market, a flower market, seasonal fashion shows, an art festival, a children’s park, an outdoor sculpture garden, wine tasting, a street market, and concerts in the park.

“This part of the city has been underserved with retail and restaurant options and has been completely dependent on the automobile for decades,” says Overby. “Town Brookhaven will soon offer its visitors and residents the chance to embrace the New Urbanism concept. At Town Brookhaven, visitors will have the ability to leave their car behind and stroll along landscaped pathways from the gym to a restaurant to a bookstore and a coffee shop.”

The Village at Valley Forge
King of Prussia, Pennsylvania

The Village at Valley Forge

In a joint venture project, Northwestern Mutual and Realen Properties are developing The Village at Valley Forge, a $1.5 billion, 125-acre mixed-use project across from the King of Prussia Mall and in the heart of Philadelphia’s Main Line in King of Prussia, Pennsylvania.

The development will feature 1 million square feet of retail space and 2,000 multifamily units as well as hotel, entertainment and office components.

Whiting Turner is the general contractor. Cope Linder is the architect. Divaris Real Estate Inc. is the retail consultant and is handling retail leasing.

The first phase is slated for completion in fall 2009 and the second phase is slated for completion in fall 2011.

“The retail component will complement existing retail at the mall,” according to Gerald Divaris, chairman and CEO of Divaris Real Estate. Tenants will include Sundance Cinema, Wegman’s, L.L. Bean and new-to-market restaurants.

Solair
Los Angeles, California

Solair

At Wilshire Boulevard and Western Avenue in Los Angeles, KOAR Development Group is developing Solair, a $160 million, 22-story project that will include 40,000 square feet of retail and 186 condo units. The project will feature a large parking area with 428 spaces for homeowners and guests as well as a separate retail parking area with 153 spaces.

KOAR Wilshire Western owns the project, which is slated for completion in December 2008. Bovis Lend Lease is the general contractor for the project, and Tishman is handling construction management. The Archeon Group is the architect of record. Super Potato is handling interior design. CB Richard Ellis is handling retail leasing at the project.

Located at an intersection with mass-transit options including the Purple Line and bus facilities, Solair is the first transit-oriented, mixed-use, for-sale luxury high-rise building in Los Angeles.

The project supports the resurgence of Koreatown. Solair will be the only building in Los Angeles to exclude floor numbers 13 and 14 in deference to Korean superstition of the number 4 and universal superstition of number 13. The condos will also have motion-censored entryways, complete with a shoe closet to accommodate the Korean custom of removing shoes before entering a home.

Residential units will start in the low $800,000s. Amenities include a large resort-style heated pool, a Jacuzzi, nine private cabanas, a fitness area with a small gym, a meditation room, a yoga studio, a library lounge and common planting areas for personal gardens of flowers and herbs.

CityGate Centre
Naperville, Illinois

CityGate Centre

In Naperville, Illinois, Calamos Real Estate LLC is developing CityGate Centre, a $300 million, 31-acre project that will contain 1 million square feet of office space, a 12-story hotel, a 700-seat performing arts center and 150,000 square feet of retail space in eight buildings.

“There is nothing like it in the marketplace,” says Daniel Slack, president of Calamos Real Estate. “The project represents a unique opportunity for corporate office users to use real estate as a recruitment and retention tool and for retailers and restaurants to capitalize on the 5,000 to 6,000 people on site.”

The office and retail space were completed in August. Calamos is leasing 30,000 square feet of office space, and Riva Restaurant has signed on as a tenant.

The hotel is slated for completion in summer 2008. The entire project will be completed in 2012.

CityGate Centre LLC I owns the project. The general contractor is Power Construction. Lohan Anderson is the architect, and Environmental Systems is the MEP engineer. Becker Realty is handling the retail leasing.

The retail component will be anchored by six to eight restaurants and will be augmented by upscale boutiques and shops as well as an upscale spa and fitness center. The company is targeting local and regional restaurateurs as well as upscale boutiques to provide unique dining and shopping options at CityGate Centre.

“The I-88 corridor (Ronald Reagan Tollway) is the largest office submarket in the greater Chicago MSA outside of the CBD,” according to Slack. “The Route 59 Corridor has been consistently one of the most active retail corridors in the United States and, as such, the confluence of Route 59 and I-88 provides a unique opportunity to locate a project of this nature.”