FEATURE ARTICLE, MAY 2008

GROWING A MIXED-USE GARDEN
Excel Realty Holdings is developing Anaheim GardenWalk, a 19.3-acre mixed-use, lifestyle center in Anaheim.
Amy Bigley

Anaheim GardenWalk will feature more than 1.9 million square feet of retail, entertainment, hospitality, residential and dining options in Orange County, California.

Located in the middle of a retail and hospitality paradise, Anaheim GardenWalk, a 19.3-acre mixed-use lifestyle center in Anaheim, is currently being developed by Excel Realty Holdings to answer the needs of the residents, tourists and convention attendees.

“Anaheim Convention Center, which is the highest booked center on the West Coast, had no good restaurants or retail within walking distance or even a convenient cab ride from the center,” explains William Stone, principal with the San Diego-based company. “The fact that the project is located between Disneyland’s two existing theme parks and their proposed new third park didn’t hurt – as well as the 2 million plus residents within 10 miles.”

With this prime location at 321 West Katella Avenue, Anaheim GardenWalk is poised to bring much needed commercial space to the surprisingly underserved market. Owned by Anaheim GW II LLC, the project will feature 439,600 square feet of retail, dining and entertainment options; 906,760 square feet of hotel space, including 866 rooms; 560,000 square feet or 400 units of timeshare property; and approximately 1 million square feet of parking space, projected to accommodate 3,200 projected automobiles and 15 buses. Completion of the center is slated to occur in multiple phases. Restaurants Along Katella opened in November of last year, the retail component is opening this spring, and the hotel and timeshares are scheduled to open in early 2010.

To fulfill the needs of the 2 million people within a 10-mile radius and the nearly 50 million tourists, Excel Realty is targeting a diverse mix of tenants. With the center currently 80-percent leased, the company is now focusing on quality lifestyle-oriented tenants. Current tenants include Aveda, Fragrance Center, AMF Bowling, Momotree, Kay Jewelers, Madison & Company, Heat Ultra Lounge, Anne Taylor Loft, The Body Shop, Chico’s, Fresh Produce, Full of Scrap, Georgiou, G-Stage, Harley Davidson, Hollister, O’Neill Sports, Runway 5, Rami Accessories, Red Apparel, Retrospect, Sketchers, Sunglass Hut, Tommy Bahama, White House/Black Market, 24 Hour Fitness, Garden Spa, Cinemapolis and Pop the Cork. Currently signed restaurants include Auntie Anne’s Hand-Rolled Soft Pretzels, Cake Bakery, Cinnabon, Great Steak & Potato Co., Hawaiian BBQ, Marble Slab Creamery, Mrs. Fields, Peking China Express, Robeks Juice, Rocky Mountain Chocolate Factory, Sbarro, Tacone®, La Salsa, Bar Louie, Bubba Gump Shrimp Co., The Cheesecake Factory, California Pizza Kitchen, Johnny Rockets, McCormick & Schmick’s Grille, Roy’s, SanSai Japanese Grill and P.F. Chang’s China Bistro.

“The project serves three different and distinct markets — the residents, the convention attendees and the leisure tourist,” notes Stone. “There is no other lifestyle center anywhere in the area and there were only a couple of quality restaurants in the entire market.”

Scott Hook, a vice president with Marcus & Millichap’s Newport Beach, California, office, explains the recent redevelopment of the Anaheim area, particularity along Katella Avenue and surrounding roadways. “The historically industrial area is now being leveled for residential development, and once the high-rises and homes are filled residents will need fine dining options, which the market currently lacks,” he says. He also notes that with the 10,000 homes/condominiums recently developed or in the pipeline, a new influx of residents will be looking for convenient entertainment, retail and dining options.

“Excel Realty really did its homework – there’s a fragmented market around Disneyland, the 5 Freeway and Platinum Triangle,” says Hook, who has 21 years of experience in retail sales and investments. “Its proximity to 5 Freeway, Anaheim Stadium, the convention center and larger hotels will make the center a destination retail hub.”

Designed by Lyons Warren, the development consists of a series of gardens linked by concourses comprising the tenant spaces. Each garden has a different theme, explains Stone, such as the Red Garden, which employs a Zen-like theme and features high-end tenants. On the other hand, the Gala Garden is a high-energy area surrounded by the movie theater, nightclub and other dynamic tenants.

Hook also notes the industry’s surprise when a small strip center along Harbor and Katella — at the edge of Anaheim GardenWalk — sold for approximately $500 per square foot a few years ago, which was at the time one of the most expensive transactions in the Anaheim market. Hindsight being 20/20, the transaction subtly marked the beginning of the area’s transformation and improvement, which is rounding out with the development of Anaheim GardenWalk.

Partners for the project include Pacific Coast Capital Partners and hotel developer Prospera Hotels; Bayley Construction and Centre Builders as general contractors; timeshare developer Westgate Resorts; civil engineer RBF Consulting and Signage Solutions. Madison Marquette and Gray & Associates have been retained to lease the project, while Cutler Enterprises is handling the branding and marketing of the project.

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