If You Build It, Will They Come?
Developers and architects discuss retail and mixed-used projects anchored by baseball parks, football stadiums and hockey arenas.
Jaime Lackey

The consensus: sports venues bring recognition and traffic to mixed-use projects but sports venues alone will not ensure the success of a development.

“It is important to understand that sports can be a good catalyst for a mixed-use project, but it is only one component,” says Barry Rosenberg, president with Columbus, Ohio-based Steiner + Associates. “There are only 80 baseball games and 10 football games a year. There are 365 days in a year. The surrounding project must be able to stand on its own. The fundamentals have to be correct.”

According to Jim Baeck of Development Design Group, the current trend of developing mixed-use projects around sports venues is the result of stadium and arena owners recognizing the value of the land around their venues. “Parking is usually not the highest and best use of the valuable land,” he says.

“People realize there is an opportunity to leverage off of the entertainment provided by these venues and the number of people that come to the venues,” adds Matthew Frank, managing director of Lighthouse Development Group. “And these projects serve as an economic catalyst for the surrounding communities.”

Blake Cordish, vice president with Baltimore-based The Cordish Company compares the trend to the development in Las Vegas: “For decades, the conventional wisdom in the gaming business was that it was a mistake to distract people from gambling. Approximately 15 years ago, there was a significant paradigm shift. Developers realized that complementary non-gaming restaurants, retail and entertainment would actually make gaming more profitable. People stayed longer to enjoy the restaurants, bars and clubs — and they ended up gambling more. Recently, many sports venue owners have reached comparable conclusions. Namely, they want to provide a broader, more engaging experience for their patrons and ultimately enhance the value of their core sports assets.”

He continues, “One mission of our company is to create places that are significant — that evoke emotion and provide memorable experiences. Organically, there tends to be an incredible amount of development around sports venues. For example, the success of the Inner Harbor of Baltimore is significantly due to Camden Yards and M&T Bank Stadium. The MCI Center in D.C. spurred the revitalization of multiple blocks around it, Coors Field in downtown Denver did the same, and the list goes on. The catalytic power of a major sports venue is amazing. Our developments allow us to maximize the benefits of sports anchors because we have the advantage of planning from a multi-block master development perspective.”

Urban Mixed-Use

The Cordish Company’s Ballpark Village in St. Louis will feature approximately 450,000 square feet of retail and entertainment space, 1,200 residential units, 1 million square feet of office, two hotels and 3,000 parking spaces.

The Cordish Company has several large mixed-use projects that play off the success of professional sports venues. In Kansas City, the company recently opened the Kansas City Power & Light District. The $850 million, nine-block project is anchored by the Sprint Center, a new 18,500-seat arena that hosts basketball, hockey, concerts, family shows and special events. AEG developed the Sprint Center in conjunction with the city.

At completion, the Kansas City Power & Light District will include 550,000 square feet of entertainment and retail, 1.2 million square feet of office, three residential towers totaling 1,000 units, two hotels totaling 500 rooms, an expanded convention center, the College Basketball Hall of Fame and Experience, and the $326 million Kaufman Performing Arts Venue.

The Cordish Company is partnering with the International Speedway Corporation (ISC), to develop Daytona Live!, a $250 million, 71-acre project, which is located across from the Daytona International Speedway in Daytona Beach, Florida. The project will have more than 300,000 square feet of retail, dining and entertainment space, a 450-unit residential component and a 300-room hotel.

Cordish is also partnering with the International Speedway Corporation (ISC), to develop Daytona Live! The $250 million, 71-acre project, which is located across from the Daytona International Speedway, will have more than 300,000 square feet of retail, dining and entertainment space, a 450-unit residential component and a 300-room hotel. The project will also feature 225,000 square feet of office space to house the headquarters of ISC, NASCAR, Grand Am and their related businesses.

In St. Louis, Cordish is partnering with the St. Louis Cardinals to develop a seven-block area adjacent to the new 45,000-seat Busch Stadium. The $650 million Ballpark Village will feature approximately 450,000 square feet of retail and entertainment space, 1,200 residential units, 1 million square feet of office, two hotels and 3,000 parking spaces.

The Cordish Company plans to develop Philly Live! adjacent to the Wachovia Center, a 20,000-seat arena in Philadelphia that is home to the National Hockey League’s Philadelphia Flyers and the National Basketball Association’s Philadelphia 76ers.

In Philadelphia, Cordish recently announced a partnership with sports and entertainment firm Comcast-Spectacor to develop Philly Live! adjacent to the Wachovia Center, a 20,000-seat arena that is home to the National Hockey League’s Philadelphia Flyers and the National Basketball Association’s Philadelphia 76ers. Philly Live! will also link to Lincoln Financial Field, home of the National Football League’s Philadelphia Eagles, as well as Citizens Bank Park, home of Major League Baseball’s Philadelphia Phillies.

In Toronto, Canada, the company is also developing a mixed-use project around a horse track — the most active horse track in North America, with 290 days of racing each year. The $1 billion, 150-acre Woodbine Live! project will include 2 million square feet of retail and entertainment, 1.5 million square feet of office space and 2,500 residential units.

“Sports-anchored developments require unique solutions. There is no formula,” Cordish notes. Most of these projects require public/private agreements with cities or states as well as the involvement of team owners. The large scale of the developments — most of which are located in downtowns — adds to the complexity.

Each year, Cordish will offer 150 to 180 free events in the plazas at each project. A division of the company produces and promotes these events. Large events, such as a major concert, are held when the sports venue is not in use. This helps to ensure foot traffic at the project. Smaller events are scheduled in conjunction with events at the larger venues to increase the energy and ambiance, creating a better experience for people already planning to attend an event.

The Cordish Company is developing the Kansas City Power & Light District. The $850 million, nine-block project is anchored by the Sprint Center, a new 18,500-seat arena that hosts basketball, hockey, concerts, family shows and special events.

“To be successful in the long term, we feel it is important to be operators of entertainment businesses,” Cordish says. Ten years ago, The Cordish Company started a division that now operates a variety of restaurant and entertainment concepts. Now, the company will operate as many as 18 concepts at its developments. Some are brand extensions, like NASCAR Sports Grille, which will be at Daytona Live!; Maker’s Mark Bourbon House & Lounge, which recently opened at The Kansas City Power & Light District; and PBR’s Big Sky, a country western-themed bar and live music concept created with Professional Bull Riders Inc. Cordish partners with well-known brands through license agreements and then develops entertainment and dining concepts that create an experience around the brand.

In addition to the brand extension concepts, The Cordish Company has dozens of one-of-a-kind concepts. Cordish explains, “We look at the merchandising of a project and we use our operating division to help round out the tenant mix. If we wish we had X, we create it to fulfill the vision.” For example, Ballpark Village will feature Cardinals Nation, a high-end, interactive sports bar that looks into the stadium.

Westgate City Center

An aerial photo of Westgate City Center, a 6.5 million-square-foot mixed-use development on 223 acres in Glendale, Arizona, which includes The University of Phoenix Stadium, home to the Phoenix Cardinals and Jobing.com Arena, home to the Phoenix Coyotes.

Phoenix-based The Ellman Companies is developing Westgate City Center, a 6.5 million-square-foot mixed-use development on 223 acres in Glendale, Arizona, a northwestern suburb of Phoenix. At completion, the development will include 1.5 million square feet of retail space, 1.8 million square feet of mid-rise office space, five hotels and more than 2,200 residential condominiums and apartments.

The first phase, which opened in 2006, contains more than 500,000 square feet of retail and office space. The retail was planned with an arena centerpiece. The Jobing.com Arena, which opened in December 2004, is home to the National Hockey League’s Phoenix Coyotes. The venue seats 17,800 for hockey games and approximately 20,000 for concert venues. “This is the premier concert venue in Phoenix,” says Tim Wright, senior vice president of The Ellman Companies. The arena has hosted Bon Jovi, Madonna, the Rolling Stones, U2 and Paul McCartney. Wright estimates 1.25 million people visit the arena each year.

Adjacent to the Westgate site is the 65,000-seat University of Phoenix Stadium, which is home to the National Football League’s Arizona Cardinals. Wright believes another 1.25 million people visit the stadium each year. The stadium, which opened in 2006, hosted the Super Bowl in February and it hosts the annual Tostitos Fiesta Bowl.

To complement these sports venues, The Ellman Companies decided on a strong dining and entertainment focus for Westgate’s retail component. The first phase of the entertainment center includes a 20-screen, 4,000-seat AMC Theatre and 18 restaurants. According to Wright, retailers such as Fossil, Puma, Quiksilver and Skechers draw a great deal of business from arena attendees.

“Westgate truly comes alive when events take place at the arena or the stadium,” Wright says. For example, on the day of the 2008 Super Bowl, the Westgate location of Jimmy Buffett’s Margaritaville had the second-highest grossing day in the company’s history. “That speaks volumes in terms of how events animate the restaurants, bars and shops,” Wright notes.

However, he adds, “Having a sports facility is not a guarantee of success or a panacea for poor planning.” The project must be planned so that the pedestrian traffic moves evenly throughout the development; the whole project should feel alive.

Additionally, the location must have the supporting demographics. “There has to be day-to-day traffic even when there are no events,” Wright says. The Westgate site contained agricultural fields just a few years ago, but the Phoenix area is one of the fastest growing metropolitan areas in the nation, and Glendale is at the center of an area that has shown rapid growth for the past two decades.

DDG master-planned the project and designed the first phase. Jim Baeck, senior partner with DDG notes, “Westgate was conceived in the middle of nowhere, and it has become a catalyst for development beyond its borders.” Wright explains that the University of Phoenix Stadium would not have located in this area if Westgate had not been developed.

Glorypark

Steiner + Associates and Hicks Holdings are developing Glorypark, a mixed-use center in Arlington, Texas, located next to Texas Rangers Ballpark and the new Dallas Cowboys stadium.

Steiner + Associates and Hicks Holdings LLC are developing Glorypark, a mixed-use project in Arlington, Texas. The development is adjacent to The Texas Rangers ballpark, which has been operating since 1994, and the site of the forthcoming Dallas Cowboys stadium, which will open in 2009.

The first phase of Glorypark will include 1.4 million square feet of retail, dining, entertainment, office and residential space.

Glorypark is organized into four districts. The Town Square has a landscaped green surrounded by signature retailers and restaurants, as well as upper-level residential units.

Steiner + Associates is working closely with Hicks Holdings, owner of the Rangers baseball team to create synergies between the ballpark and Glorypark. The second district, Rangers Alley, offers a regional entertainment hub along the south façade of the baseball stadium. The 50,000 square feet of open space is organized into a 300-foot long street leading to an events plaza. The street will feature a mix of restaurants, pubs, entertainment venues and sports-related retail.

The third district will feature two stories of retail space topped by two stories of office space. “Designed as an enclosed street, it is modeled after European environments such as Milan’s iconic glass-roofed Galleria,” Rosenberg says.

The hotel district will feature a Westin hotel.

While the stadiums do give the development a strong sense of identity, Rosenberg says the site is fundamentally strong even without the sports connection.

Glorypark is truly a regional site by nature of its central location and the roadways that make it easy to access. The site is in the very center of the Dallas/Fort Worth Metroplex, which totals 6.5 million people. It is located at the intersection of Interstate 30 and Highway 360, the main east/west and north/south roads in the region. (Nearby interchanges are being reworked to accommodate traffic drawn to the stadiums and Glorypark.)

Dallas/Forth Worth is experiencing tremendous growth, Rosenberg adds. According to the North Central Texas Council of Governments, projections indicate the MSA will total more than 9.1 million people by 2030.

Currently, Arlington has 300,000 people. “Glorypark is going to create a focal point in the community,” Rosenberg says. “It will become the center of the city. In fact, it will become the center for the Mid Cities between Dallas and Fort Worth.”

Lighthouse at Long Island

The 150-acre Lighthouse at Long Island project includes the Nassau Veterans Memorial Coliseum, which is being redeveloped into a vibrant mixed-use community and destination.

Lighthouse Development Group LLC is developing Lighthouse at Long Island. The development company comprises RexCorp Realty LLC, a prominent owner, manager and developer of commercial real estate in the New York tri-state area, and Charles Wang, owner of the National Hockey League’s New York Islanders and the Arena Football League’s New York Dragons.

The 150-acre project includes the Nassau Veterans Memorial Coliseum, which is being redeveloped into a vibrant mixed-use community and destination. The project includes a transformed arena, which is home to the Islanders and the Dragons. The coliseum will also host concerts and shows such as Disney on Ice, and it has conference and exhibition capabilities.

“This is not just a hockey arena anymore,” says Baeck of DDG, which is designing the project. “The project will include a training facility for hockey and lacrosse, a fitness center for the general public, and a multipurpose area with ice rinks that can also be used for basketball courts.”

In addition, the plan calls for a sports technology center that will focus on research and development for all sports as well as rehabilitation for athletes. “People will come from across the country to take advantage of this facility,” Baeck notes.

The technology center will serve as an incubator for companies that develop sports-related products, says Matthew Frank of Lighthouse Development Group. “With the technology center, we are identifying a new industry to serve as an economic driver for the local economy,” he explains.

Plans for Lighthouse at Long Island also include 500,000 square feet of retail, restaurant and entertainment space, including a 12- to 14-screen cinema; 1 million square feet of office space; a new five-star hotel with 300 hotel rooms and 200 to 300 luxury condos. Additional residential space will include approximately 2,000 units of apartments, condos, lofts and townhomes. The project also includes 200,000 square feet of convention and exhibition space.

Long Island has high taxes that inhibit economic growth somewhat. Frank believes the technology center will attract businesses and the density of residential space at the project will begin to address the lack of housing options and tax-related issues the city faces. “This project will create economic momentum,” he says.

Frank expects to complete the approval process and begin improvements at the coliseum in July 2009. The buildout for the project is expected to take 5 to 10 years.

The North Shore

The $200 million North Shore project currently underway by Continental Retail Development between Heinz Field and PNC Park in Pittsburgh includes 400,000 square feet of office space and 75,000 square feet of ground-level retail space in three buildings. A 175-room Hyatt Place Hotel will break ground in early summer.

Columbus, Ohio-based Continental Real Estate Companies is developing The North Shore on approximately 24 acres located immediately north of downtown Pittsburgh across the Allegheny River, between Heinz Field and PNC Park. The $200 million project currently includes 400,000 square feet of office space and 75,000 square feet of ground-level retail space in three buildings. A 175-room Hyatt Place Hotel will break ground in early summer. The company plans to develop an additional three buildings containing office space and approximately 60,000 square feet of retail space.

The two stadiums bring more than 3 million people to the North Shore area each year. Heinz Field, which opened in 2001, is home to the National Football League’s Pittsburgh Steelers as well as the University of Pittsburgh’s Panthers football team. PNC Park, which also opened in 2001, is home to Major League Baseball’s Pittsburgh Pirates.

According to Frank Kass, chairman of Continental Real Estate Companies, the site would work even without the ballpark and the stadium: “This is a natural site that happens to have a sports venue on either side.”

The venues are located in this area because the access and the demographics are great. “All of Pittsburgh’s major roadways converge here,” Kass says. “Seventy percent of the area’s population works downtown.”

However, the stadiums do impact the project’s retail. The retail component is entirely restaurant and entertainment uses. According Kass, the company decided to tailor the retail program to service the crowds drawn to the adjacent sports venues as well as office workers on-site and in nearby areas of downtown.

Retail tenants at The North Shore include Hyde Park Prime Steakhouse, an upscale, dinner-only restaurant; McFadden’s Restaurant and Saloon, an Irish pub; Calico Jack’s Cantina, which serves Tex-Mex; and Jerome Bettis Grille 36, a sports bar with a football-shaped bar in the middle and approximately 70 flat-screen televisions.

Continental Real Estate Companies is also bringing an indoor/outdoor entertainment complex to the site. The 50,000-square-foot venue will seat up to 3,000 people for an indoor event. The stage area has large hangar-style doors that open to an outside amphitheater that will accommodate 5,000 to 6,000 people.

Game Plan

According to Rosenberg, the success of a mixed-use project with a major sports component depends on location, the integration of all product types, ease of access and parking. Steiner + Associates spent 2 years coordinating with the Rangers ballpark and the Cowboys stadium to plan the parking at Glorypark.

Baeck says traffic management is critical: “When there is an event at the sports venue, thousands of people converge on the site. Traffic must be managed so that the retail and restaurants are not affected by traffic jams.”

Baeck adds that it is important to locate and screen the sports venue carefully: when there is no event at the venue, the dark building should not dampen the energy and atmosphere of the rest of the project.

Cordish expects the trend of developing sports venues in downtowns will continue. “More and more, they will be viewed as a component of a larger project from the beginning. There are so many advantages of master-planning.”

Ambiance & Advertising Developers that are creating mixed-use projects have found signage adds to the atmosphere in their projects, and it is proving very profitable. Many sports and retail projects are choosing to add lots of media elements throughout. The Ellman Companies chose to integrate media channels like these extra large billboards, throughout Westgate City Center in Glendale, Arizona. Steiner + Associates and Hicks Holdings LLC (owners of the Texas Rangers baseball team) have formed Glorypark Media Network to develop an array of media features and to plan a calendar of events at Glorypark. The $40 million media system includes a 40-by-70-foot media wall with high-resolution LEDs; a digital projection system designed to transform the west end of the ballpark wall into a media canvas; dramatic signs that are integral to the architecture; a programmable water, fog and effects fountain; and theatrical lighting that can be programmed. The Cordish Company is also using technology to create interactive environments. The use of media screens depends on the development, says Blake Cordish. In The Kansas City Power & Light District, the company intentionally limited media use to one large screen over the outdoor stage. Up to 8,000 people watch events here. In addition, the company televises major events that take place at the Sprint Center. At Daytona Live!, there will be an enormous oval-shaped LED screen that encircles the 25,000-square-foot main plaza. If you are standing in the plaza during a NASCAR event televised on the screen, it will look like the cars are going around you. “This is all about creating a unique experience,” says Cordish. He notes that NASCAR events take place more than 30 weeks out of the year, and events from all over the nation can be televised on this screen. “Whether the sporting event is away or home, LED screens help to ensure that our projects are the place to be.” Steve Ellman, chairman of The Ellman Companies, also chose to integrate media channels throughout Westgate City Center. Through a partnership with Clear Channel Spectra Color’s Branded Cities division, Westgate features ads on signage built into the project. Tim Wright of The Ellman Companies says, “There are huge signs looming over the development. There is a great deal of energy from the arena at the front door, and this media integration extends that energy throughout the project.” According to Jim Baeck of DDG, which master-planned Westgate, the development includes electronic signs as well as traditional vinyl signs. Buildings have large blank walls specifically designed to house the signs. There are also three-dimensional signs hanging above plazas. “The signs are part of the environment; they help define the space,” Baeck says. He adds, “Westgate has more square feet of signage than any place outside of Times Square. The project has changed the thinking about advertising and real estate. Retailers recognize that the signs bring incredible visibility to their brands and they want to open a store right there to combine corporate advertising and real estate.” — Jaime Lackey

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