California Retail Shines Like the Sun
From lifestyle to mixed-use, new developments to expansions, retail continues to flourish in the Golden State.
Stephen O’Kane

Many significant new retail projects are being planned throughout the state of California. Expansions, redevelopments and new centers are planned or taking root, giving developers and retailers the opportunity to take advantage of the growing population and expanding economy. From San Diego north to the Bay Area, retail continues to shine like the sun.

SOUTHERN CALIFORNIA

Los Angeles and Ventura Counties

Los Angeles County is experiencing the majority of the growth taking place in the Golden State. Several large-scale projects are being developed to cater to the area, which seems to grow with each passing year. Retailers are finding hot spots to open new locations, while developers provide quality destinations for residents and visitors.

“California has year round weather and the ocean — people and companies want to locate here,” says Matt Landers, senior manager of real estate development for Opus West. “It has tremendous population density and great jobs. Southern California enjoys a diverse economy, which includes tourism, technology, finance and one of the largest port complexes in the world. Population density and high incomes mean strong sales to retailers.”

Opus West is developing The Shoppes at Chino Hills, a mixed-use project located in the Los Angeles County area of Chino Hills that will feature a 320,000-square-foot retail portion.

Opus West is currently developing The Shoppes at Chino Hills, a mixed-use project located in the Los Angeles County area of Chino Hills. The project features a strong retail portion, boasting 320,000 square feet, with a solid tenant lineup including Barnes & Noble, Trader Joe’s, Banana Republic, Hollister, Coldwater Creek, Yard House, P.F. Chang’s China Bistro and American Eagle, among others. The project, which also includes office and residential space, is scheduled for completion next spring.

“The population in the Chino Valley has filled in over the last 20 years, creating demand for a new lifestyle center,” says Landers. “We are creating a town center for a community which has lacked one. The 50-acre project has retail, restaurant, office, residential and public uses. Walkable streets and vertical integration of product types are things we will see more of in California. The Shoppes at Chino Hills features a pedestrian-only area with fountains and seating as well as second floor office space over the retail. Many cities are looking to create the type of community identity that Chino Hills will have next year with the Shoppes development.”

Also taking root in Los Angeles County is The Village at Westfield Topanga, a development of Westfield in Woodlands Hills. The project will link together with the company’s existing Promenade, giving consumers a unique family-friendly shopping, dining, living and entertainment destination. Upon completion, The Village at Westfield Topanga will comprise approximately 438,500 square feet of new retail with a 34,500-square-foot gourmet grocery store and 75,000 square feet of restaurant and café space. Also planned for the project are 160,000 square feet of boutique office space above the retail, a 360,000-square-foot office tower, 160 apartment units and a 300-room hotel.

LNR Property Corporation and Hopkins Real Estate Group are developing Avalon at South Bay in Carson. The mixed-use center, which is positioned on 168 acres, will house approximately 1.3 million square of retail as well as residential and hospitality components. Construction is scheduled to begin in 2009 with an opening planned for 2011.

El Monte Transit Village, a development of Titan Group located in El Monte, will be a mixed-use center in Los Angeles County. The project will feature 600,000 square feet of retail space, 600,000 square feet of office space, a 200-room hotel with a conference center and 1,850 condominiums.

Titan Group and NAI Capital are working together to bring El Monte Transit Village on line by fall 2009. The development, located at the northwest quadrant on Interstate 10 and Santa Anita Boulevard in El Monte, will be another significant mixed-use center in Los Angeles County. In addition to 600,000 square feet of retail space, 600,000 square feet of office space, a 200-room hotel with a conference center and 1,850 condominiums, El Monte Transit Village will be a transit-oriented development offering a unique atmosphere with landscaping and open spaces for its residents and customers.

“The Titan Group will create a vibrant and livable community in an urban atmosphere,” says Luis Valenzuela, executive vice president for NAI Capital. “Designed for the pedestrian and kids on bicycles, Transit Village is for the urbanite who will enjoy pathways through luscious-landscaped grounds, riverwalk areas, parks and open space.  This mixed-use development is also home to a Metro Bus Station that has 22,000 transit riders a day. The residents and surrounding community will have a mixture of uses within walking distance.”

NAI Capital is also involved with Plaza México, a development of M+D Properties in Lynwood. Located at the northwest quadrant of Interstate 105 and Long Beach Boulevard, the project houses 425,000 square feet of retail, restaurant and office space. Like the El Monte project, Plaza México also features lush landscaping and an open-air design and provides several shopping opportunities with retailers such as Nine West, Rite Aid, Hometown Buffet and Food 4 Less. It highlights replicas of Mexican monuments and features Mexican architecture and festivals, offering a unique cultural shopping experience.

Caruso Affiliated is developing Americana at Brand, a mixed-use project in Glendale that will house 475,000 square feet of retail.

Caruso Affiliated also is present in the Los Angeles County market with its Americana at Brand in Glendale. The project, which is expected to open next April, will house 475,000 square feet of retail with tenants including Barneys New York, Kate Spade, Concept Five, True Religion, Lacoste, Cheesecake Factory, Barnes & Noble and Pacific Theatres. Also included in the development will be 238 apartments and 100 condominiums built atop the retail.

“The Americana at Brand is bringing a distinctive, contemporary mix of tenants to the area,” says Todd Russell, senior vice president of leasing and marketing for Caruso Affiliated. “It will distinguish itself in the competitive Los Angeles market by offering new retailers to the area combined with a level of style and sophistication that is unmatched in the region.”

The Burbank Collection in Burbank is Champion Development Group’s contribution to the growing presence of strong retail in the area. The company is working with Lee & Associates to bring another large-scale project to Los Angeles County. Upon completion in June, the development will be located at 57 East Palm Avenue in downtown Burbank and will offer tenants such as Amuse Jewelry, Café Venizie and Johnny Rockets. The Burbank Collection will feature approximately 40,000 square feet of retail in addition to its 100 condominiums.

There also is activity in Los Angeles County’s Santa Clarita. Currenly under development is Golden Valley Ranch, a 600,000-square-foot retail center, which will be anchored by Kohl’s and Target. It is scheduled for a summer 2008 opening.

Also in Santa Clarita is the Westfield Valencia Town Center Mall expansion. Located at 24201 West Valencia Boulevard and spanning 331,860 square feet, the first phase of the expansion is set to open this year.

In Ventura County, the Hagelis Team of Lee & Associates is keeping busy. The team is involved with two significant developments underway in the area, which is positioned just east of Los Angeles County.

The Collection at Riverpark, located at Ventura 101 Freeway and Oxnard Boulevard in West Ventura County, will be a 700-acre mixed-use development. In addition to 2,805 new residential units, the project will house approximately 1 million square feet of retail, office and hotel space. Plans for the retail portion of The Collection at Riverpark include an upscale lifestyle center. The Hagelis Team is handling lease negotiation for the development.

Also in Ventura County is The Village at Moorpark, another project that the Hagelis Team is working on. The development is located at the gateway of the City of Moorpark and positioned across the street from the newly developed Moorpark Marketplace. The Village at Moorpark offers convenient access to nearby areas including Thousand Oaks, Westlake Village and Simi Valley. Tenants for the project include Chick’s Sporting Goods, Staples, Petco, Coldstone Creamery and Verizon Wireless.

In the Thousand Oaks area of Ventura County is Janss Marketplace, a retail property anchored by tenants such as Gold’s Gym, Toys “R” Us, Marshalls, Linens ‘n Things, Fuddruckers and Mann Theaters. The center, which is conveniently positioned at Moorpark Road and Hillcrest Drive, was remodeled in 1999 and recently unveiled its new community fountain. The newly constructed fountain features a nine-foot tall bronze Chamush Native American sculpture, giving the center a unique cultural feel. Janss Marketplace also redesigned its courtyard area with a new interactive fountain designed specifically for children.

Inland Empire

Moving east into the Inland Empire, the growth continues. From Rancho Cucamonga to Riverside, retail is being developed to satisfy the population boost.

“From a development standpoint, California still has strong need for retail development to meet the wants of many still growing communities,” says Elisa Grey, economic development manager for the City of Fontana. “Additionally, California is experiencing a boom in retail development that hasn’t been seen since the 1980s. This boom in retail development is due to the boom in residential development of the late 1990s and early 2000s in the Inland Empire, High and Low Desert communities.”

Two major developments in Fontana depict the retail boost in the area. The city is currently searching for developers for Ventana, or the “Corporate Corridor,” a planned mixed-use project that will offer office and retail space. Spanning 105 acres near Interstate 15 and Duncan Canyon, the development will cater to corporate headquarters in the area and offer national and regional tenants.

Also in Fontana is Fontana Promenade, a 122.5-acre mixed-use lifestyle center located off of Sierra Avenue, south of the 210 Freeway and north of Baseline. The development, which has not named a developer yet, plans to feature major national and regional tenants.

Moving south to Riverside, several new developments and expansions are underway. Alamo, California-based Transcan Development is creating Canyon Crossings, a mixed-use center that will feature approximately 740,000 square feet of retail and 144,000 square feet of Class A office space. The project is located at the intersection of Highway 60 and Interstate 215 and will be completed in three phases. Phase I of the project is complete and houses tenants including Wickes Furniture and LA Fitness. Phase II, which is scheduled to open in October, will feature John’s Incredible Pizza, Staples, EasyLife Furniture, Hooters Restaurant, Jason’s Deli and Joey’s Seafood & Grill. A Phase III is planned, which will develop a Wal-Mart Supercenter.

“The region’s demographics are considerably upscale,” says Tricia Hinkley, economic development manager for the City of Riverside economic development agency. “In most measures of economic power, Riverside leads the rapidly evolving Inland Empire. Riverside’s fast- growing population — including many upwardly mobile families and high-earning professionals drawn by more housing options than in neighboring Orange and Los Angeles counties — means increasing demand for more retail, dining and entertainment. To date, there is close to 1 million square feet of new retail under construction in the City of Riverside with several mixed-use projects on the near horizon.”

Also in Riverside is the current expansion of the Galleria at Tyler. The project, which is owned by General Growth Properties, is undergoing a 200,000-square-foot expansion. The existing 1.1 million-square-foot mall is located just off of the 91 Freeway and houses tenants including Nordstrom, Macy’s and JC Penney. Plans for the expansion include the addition of two lifestyle components. The “North Village” will feature a 16-screen AMC Theater above street-level retail and restaurants, while the “South Village” will house Yard House and Elephant Bar.

The City of Rancho Cucamonga also is seeing an expansion of one of its major retail developments. The existing 1.5 million-square-foot Victoria Gardens, a development of Forest City Enterprises, will span more than 2 million square feet upon total build out. Major tenants for Victoria Gardens include JC Penney and Macy’s. A 180,000-square-foot Bass Pro Shops Outdoor World opened in July, adding to the ongoing expansion.

“Until just recently (within the last 5 years), the Inland Empire of Southern California was not thought of as a major hub for retail development,” says Mike Nelson, economic development manager for the City of Rancho Cucamonga. “However, there are many upscale communities that have proven to the retail site selectors and retailers that this is a place they need to be. Right now, the business and residential growth, employment levels, etc. are some of the strongest in the country.”

The City of Ontario is experiencing strong retail growth due to the population boost as well. One significant project taking root in the city is Piemonte, a development of Panattoni Development. The project, which is located at the southwest corner of Fourth Street and Milliken Avenue, will be developed in three phases. Phase I opened this spring with Phase II scheduled for next spring and Phase III for fall 2009. Upon completion, the project will span approximately 500,000 square feet with tenants including Target and Best Buy.

“Ontario’s retail market is experiencing a rapid transformation with the development of mixed-use lifestyle centers throughout the city,” says Kelly Marks, economic development manager for the City of Ontario. “Not only are luxury retailers expanding here in Ontario, but the quality of the product is comparable to that of Orange County and Los Angeles. Tenant improvements and rental rates are at an all time high, which indicates that lifestyle centers in Ontario and the Inland region are in high demand.”

Lewis Retail Centers is active in the Inland Empire region of California as well with a few Target-anchored centers. One of the company’s projects is Renaissance Marketplace, located in the City of Rialto. The 420,000-square-foot retail center is scheduled to open in 2009. Also on Lewis Retail Centers’ palette is The Venue at Perris in Perris. The 676,000-square-foot retail center, which also will be anchored by Target, is scheduled for a 2010 completion.

Donahue Schriber is developing Countryside Marketplace in Menifee in Riverside County. The 750,000-square-foot power center is scheduled to open this October with tenants including Target, Kohl’s, Best Buy, Sport Chalet, Linens ‘n Things and Petco. The project, which is 90 percent pre-leased, is Donahue Schriber’s third center, built or under construction, in Riverside in the past few years.

Also in Menifee is PacTen Partners’ The Junction at Menifee Valley. The development will comprise a power center and a lifestyle component. Positioned west of Interstate 215 at Scott Road, the project will span approximately 525,000 square feet and feature power center retailers as well as a main street retail component in the middle of the development.

Orange County

The retail growth continues south of the Inland Empire into Orange County. From Tustin to the coast, including Huntington Beach and Newport Beach, new retail projects are being developed.

Aliso Viejo, California-based Shea Properties is creating a significant mixed-use development in Tustin named Legacy Park. This large-scale, 820-acre project will feature an extensive retail portion, new homes, office space, hotels and open spaces and parks. The retail portion will span approximately 350,000 square feet upon completion and house specialty and service retailers. Added to four hotels, 2,100 homes, 170 acres of open space and 6 million square feet of office space, Legacy Park will be a major addition to the City of Tustin. Architects Elkus Manfredi and Skidmore Ownings & Merrill will join Shea Properties in the development of Legacy Park, which will open in phases during 2009 and 2010 (see related story on page 70).

The District at Tustin Legacy, a development of Vestar Development and Kimco Realty, opened this spring in Tustin. The project spans more than 1 million square feet and includes tenants such as Best Buy, Costco, Lowe’s Home Improvement Warehouse, Whole Foods Market and AMC Theatres.

Makar Properties is developing Pacific City, a project in Huntington Beach that will house 161,000 square feet of specialty retail, high-end boutiques, fine dining, sidewalk cafés and designer shops.

KTGY Group is making its presence known in Orange County with Pacific City in Huntington Beach and Bel Mare in Newport Beach. Pacific City, which will be located at Pacific Coast Highway and First Street, will house 161,000 square feet of specialty retail, high-end boutiques, fine dining, sidewalk cafés and designer shops. In addition to the large retail portion, 30,000 square feet off office space will be included. KTGY is designing Pacific City, which is scheduled for a 2009 opening. The project is being developed by Makar Properties.

“Our project Pacific City in Huntington Beach is a perfect example of trends we are seeing in open-air destinations,” says Greg Lyon, principal and partner of KTGY Group. “The project combines retail, entertainment, office, residential and hospitality to create a high-density, urban resort environment that has both a local and regional draw.”

The company also is designing Bel Mare, a lifestyle retail center located at the intersection of Pacific Coast Highway and Dover Drive in Newport Beach. The development will house approximately 56,000 square feet on two levels and will feature a two-level underground parking structure. Bel Mare, which is being developed by a joint venture between Santa Ana, California-based Red Mountain Retail Group and Newport Beach-based Allied Retail Partners, is scheduled to break ground in the fourth quarter of this year.

Palm Springs

East of the high-density counties near Los Angeles, Palm Springs is yet another area of Southern California experiencing growth in population and retail. In the city’s southern neighbor, Rancho Mirage, Monte Vista Rancho Mirage LLC is developing a new retail and restaurant destination. Five Peaks at Rancho Mirage, located at Highway 111 at Library Way, will be a 189,616-square-foot center housing retail, restaurant and spa space. The project is currently pre-leasing and pending review by the city.

The Hagelis Team of Lee & Associates is active in this area of Southern California as well with Airport Plaza and Gene Autry Plaza, both in Palm Springs. The 23-acre Airport Plaza is located near Palm Springs International Airport at Ramon Road and Airport Center Drive. Airport Plaza will be a retail and hospitality location housing a grocery store anchor and restaurant and pads space.

Also under development in Palm Springs is Gene Autry Plaza, located at the southeast corner of Gene Autry Trail and Ramon Road. The 230,000-square-foot retail center is currently pre-leasing its space through the Hagelis Team and has signed anchor tenants Lowe’s Home Improvement Warehouse, Best Buy and Staples. KKE Architects is providing architectural services.

It is not just new developments taking root in the Palm Springs area, but redevelopments and expansions as well. Investwest Partners is expanding Monterey Marketplace, a retail center located at the intersection of Monterey Avenue and Dinah Shore Drive in Rancho Mirage. The company will add approximately 107,500 square feet of new retail with tenants such as DSW Shoe Warehouse, and Plummers Furniture. The expansion project is scheduled for opening n December.

Another significant expansion is Donahue Schriber’s Smoke Tree Commons project. The company plans to add an additional 175,000 square feet to the center, with new tenants such as Michaels, Linens ‘N Things, Cost Plus World Market and Jensens. The project, which is located at the southeast corner of East Palm Canyon and Barona, will be completed by spring 2008.

San Diego County

In San Diego County, Transcan Development is in the planning stages of creating a regional, freeway-oriented retail project. Located in the northeast quadrant of the future state Route 125 and Otay Mesa Road in Otay Mesa, California Crossings will span 350,000 square feet. Phase I of the project will develop a Target anchor as well as specialty shop and restaurant space. CB Richard Ellis is providing leasing for California Crossings.

American Assets is leading the renovation and re-tenanting of a development in Solana Beach, located north of San Diego. The company will renovate the 252,000-square-foot Solana Beach Towne Centre in three phases.

American Assets is leading the renovation and re-tenanting of a development in Solana Beach, located north of San Diego. The company will renovate the 252,000-square-foot Solana Beach Towne Centre in three phases; the first two have been completed and the final phase is scheduled for late 2008. Tenants for Solana Beach Towne Centre include Henry’s Marketplace, BevMo, Marshalls, CVS/pharmacy and Dixieline Lumber.

General Growth Properties recently opened its Otay Ranch Town Center, an open-air regional center in San Diego County. The center is anchored by Macy’s and also includes tenants such as Anthropologie, The Cheesecake Factory and P.F. Chang’s China Bistro.

MIDDLE/NORTHERN CALIFORNIA

Bay Area/Sacramento

Middle and Northern California are experiencing their fair share of growth, and the retail projects being developed in these areas of the state show just how the retail is catching up to provide the necessary opportunities for residents and visitors.

Rawson Blum & Leon (RBL) is active in the area with a significant large-scale project in Placerville, positioned east of Sacramento. Placerville Marketplace is located at the southwest corner of U.S. Highway 50 and Missouri Flat Road and is being developed to include a large format department store, promotional retailers, soft goods and restaurant space. Upon completion, which is scheduled for the third quarter of 2009, Placerville Marketplace will span 433,000 square feet.

RBL is developing in the Bay Area as well. The company’s Santa Rosa Village, positioned north of San Francisco in Santa Rosa, is a mixed-use project that will feature a residential component as well as a grocery-anchored shopping center. A 93,000-square-foot retail portion, anchored by a supermarket and other retailers, will serve a 126-townhome community at the southeast corner of Petaluma Hill and Kawana Springs roads. Santa Rosa Village is scheduled for completion in 2009.

General Growth Properties also is active in this area of California with its Elk Grove Promenade in Elk Grove. Upon completion, which is scheduled for fall 2008, Elk Grove Promenade will be a 1.1 million-square-foot regional open-air center, located off the new Grant Line Road interchange and Highway 99. The center will feature a Macy’s, a 16-screen Cinemark Theatre and Barnes & Noble.

Development of Stonecreek Village, a mixed-use development in Stockton, is currently underway. The project will be situated on a 15-acre tract of land andcombine retail, retaurant and office uses. Phase I, which will create 161,000 square feet of gross leaseable area, is scheduled for a spring 2008 opening. Phase II will develop an additional 50,000 square feet. Tenants will include Ann Taylor Loft, Coldwater Creek and Aveda Lifestyle Salon. Stone Brothers & Associates is developing the project and M&M Stone is serving as general contractor.

Westrust is developing The Plant, a 645,000-square-foot mixed-use project in San Jose. Upon completion, the development will house retail and office space on a 55.4-acre tract of land. According to the company, this site, which also includes the historic renovation of the General Electric Motor Plant Office Headquarters building, will be the largest power center developed in San Jose. In Vacaville, located along Interstate 80 southwest of Sacramento, Westrust is developing Nut Tree Village, another mixed-use project housing retail and office space. Situated on 30 acres, Nut Tree Village will span 325,000 square feet.

In Sunnyvale, a city positioned west of San Jose, Downtown Sunnyvale Mixed-Use LLC is developing Sunnyvale Town Center. The project is currently under construction near Washington Avenue in downtown Sunnyvale and will feature approximately 950,000 square feet of retail space upon completion in 2009. Macy’s and Target will anchor the Sunnyvale Town Center, which will include other tenants such as Century Theatre. Also planned for the development are 300 housing units and 315,000 square feet of office space.

Fresno Metro Area

The Fresno metro area is not escaping the trend of retail growth either. Forest City Enterprises is in the middle of developing a mixed-use center in the city, which will house residential and retail space to cater to the area’s growth. Upon completion, which has yet to be determined, Fresno will span 690,000 square feet and house 660 apartment units, 102 townhomes and approximately 74,000 square feet of retail space.

“California is experiencing great population growth, not only in numbers but also in diverse demographics,” says Brian Jones, president and chief executive officer for the West Coast division of Forest City Commercial Group. “California has been a great market for Forest City and we’re continuing to look for areas where the need for retail, residential and mixed-use properties exists.”

The City of Clovis, positioned north of Fresno, is seeing a couple significant retail developments as well. Located at the northeast corner of Clovis and Herndon Avenue, a new 524,715-square-foot retail center is taking root. Clovis-Herndon Shopping Center, the tentative name for the development, will house tenants such as Wal-Mart Supercenter, Kohl’s and Old Navy. The project is scheduled for completion in 2009.

Also in Clovis is the Sierra Vista Mall, which is currently undergoing an expansion. Located at the southwest corner of Clovis and Shaw avenues, the development is being completed in two phases. Phase I opened in December of last year, while the second phase is scheduled for October. Tenants for the 110,000-square-foot project include a Criterion 16 theater and Chipotle Restaurant.

Throughout the state, California is developing and expanding its retail. The boost in population, coming from new residents and visitors alike, is creating a void in the retail market that developers and retailers are filling with new and unique projects. Whether it is a new mixed-use center, a lifestyle center or something completely innovative, California retail continues to lead the way.

“People outside of California don’t like to admit it but they watch California to see what is next for them,” says Mike Dozier, community and economic development director for the City of Clovis. “Whether it be regulatory matters such as environmental laws or public smoking, or trends in retail operations, California is a trend setter. The biggest draw California has is positive demographics such as dense population centers and disposable income. Retailers want to take advantage of the demographics that California has to offer.”

©2007 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.