FEATURE ARTICLE, MAY 2008

MIXING IT UP
Mixed-use developments continue to attract attention from consumers, retailers and residents in the West.
Amy Bigley

Developers continue to strike it big with mixed-use projects throughout the West. By changing up the tenant mix, refocusing the overall project or centering projects around transit stations, companies are bringing new life into typically underserved markets and sparking renewed interest in the mixed-use design format.

Lincoln Station Phase 1

Westfield Development Company Inc. has partnered with Bradbury Partners and Level Development to construct Lincoln Station in Douglas County, Colorado. The first phase of the transit-oriented project will feature a mix of retail, residential and office space.

Teaming up with Bradbury Partners and Level Development, Westfield Development Company Inc. is developing Lincoln Station, a transit-oriented, mixed-use project in Douglas County, Colorado.

Originally a farm in the rural area south of Denver, the land for Lincoln Station has been in the Bradbury family for more than 60 years.

“Eventually the urban landscape spread to meet the land and Interstate 25 was built adjacent to it,” says Randy Schwartz, senior vice president with Denver-based Westfield Development Company. The local transit agency, RTD, then decided to develop a light rail corridor to run south along the highway from downtown to Lincoln Avenue with an end-of-line rail stop and parking garage developed on a parcel of land purchased from Bradbury Partners.

“The new rail stop proximity created a perfect opportunity for a transit-oriented development project,” notes Schwartz.

Located in unincorporated Douglas County, which is included in the 28.6 million-square-foot southeast suburban submarket of metropolitan Denver, the first phase of Lincoln Station will feature four distinct sections: One Lincoln Station, Clocktower, Station Street South and The Flats at Lincoln Station/Station Street North.

Westfield Development and Bradbury Partners have formed Lincoln Station Investors Phase 1 LLC to develop the $45 million three-component commercial portion of the property. The six-story One Lincoln Station will feature 143,315 square feet of office space; Clocktower will offer a three-story, 22,586 -square-foot, mixed-use building with 9,076 square feet of ground-level retail space and 13,510 square feet of second- and third-floor office space; and the three-story Station Street South will feature 31,593 square feet of space with 10,366 square feet of ground-level retail space and 21,227 square feet of second- and third-floor office space. Completion of the commercial components is slated for June.

Level Development is developing the Flats at Lincoln Station, the development’s residential component. The four-story mixed-use building will offer 77 for-sale residential units and 8,684 square feet of ground-level retail space. Upon completion, Lincoln Station Investors plan to acquire the retail portion of the residential component as Station Street North.

Designed to be LEED certified, One Lincoln Station is also utilizing a state-of-the-art underfloor HVAC system that will create a healthier, more comfortable and productive work environment for future employers and employees.

In addition to sustainability elements, the project offers a rare urban environment for the suburban project, which the company has dubbed as Denver’s first Goburb village representing the intersection of suburban and urban, explains Schwartz.

The pedestrian-friendly development features an off-red-brick and limestone-colored stone buildings nestled around a piazza, which includes a variety of soft- and hardscapes, as well as a fountain edging the path from the piazza to the light-rail stop.

“Lincoln Station is unique in that it is the metro Denver’s first true mixed-use transit-oriented development, responsive to the mobility needs of the office sector of the market as well as its residents and retail visitors,” says Schwartz. “It is mixed use in every sense and is starting a new paradigm in the Denver metro area regarding transit development and the desire to focus density around the growing number of rail stations.”

The mix of activities and uses, which in turn reinforce each other, provide a wealth of options for residents, daily workforce and transit riders. With retail, restaurants and office space all within walking distance, residents benefit most from the development’s unique environment, although office users are able to take advantage of the great mix of options as well. “It is this broad range of activities, along with the architecture and setting, that creates the sense of an urban oasis in the middle of suburbia and what we call a Goburb Village,” notes Schwartz.

Although transit-oriented development is new to the Denver market, demand has been substantial since groundbreaking in February. Dex Media has already signed on to lease the entire One Lincoln Station Office building. With this response, the developers are looking forward to the additional phases of development. The overall 35-acre project is entitled with 2 million additional square feet of office space, 50,000 square feet of retail space and 2,000 residential units. Currently phases two and three, each offering 200,000 square feet of office space, are in the design process.

Colorado Crossing

Colorado Crossing, a 153-acre mixed-use project in Colorado Springs, Colorado, will feature 800,000 square feet of retail space, 800,000 square feet of office space, 1,000 full-service hotel rooms and up to 2,500 residential units.

Colorado Springs-based Sunshine Home Development has partnered with SRKO Family Limited Partnership to develop Colorado Crossing, a mixed-use development located in Colorado Springs. As Colorado Springs first true mixed-use project, the 153-acre development will feature 800,000 square feet of retail space, 800,000 square feet of office space, 1,000 full-service hotel rooms and up to 2,500 residential units. Anchor tenants for the development include Cinemark Theatre and a Starwood Brand – Full Service hotel.

The land was originally purchased from the 3M Real Estate Investment Trust by Sunshine Home Development’s CEO, Jannie Richardson, on behalf of SRKO Family Limited Partnership.

“When the opportunity [to develop] came about, Jannie did not hesitate at the chance,” says Paul Ko, CFO of Sunshine Home Development. “As a Colorado Springs resident for more than 30 years, she truly believes that ‘this is the best place to live.’”

Located across the highway from the U.S. Air Force Academy and across the street from New Life Church and Pikes Peak Community College, the site had natural potential to fulfill the needs of the surrounding demographics, which includes retired military officers and baby boomers.

The partnership is tapping into that potential by creating an upscale urban town center that will be easily accessible for everyday lifestyle needs. The project, which has a more than $1 billion price tag over the next 10 years, is integrating office and residential uses above ground-level retail space. Additionally, the project is the city’s first urban development to incorporate sustainable, green buildings that are energy efficient, according to Ko.

Designed by OZ Architects to complement the Rocky Mountain setting, the project will feature native sandstone accents, and Colorado-native aspens and conifers, as well as flower beds filled with Rocky Mountain perennials and wildflowers. The main intersection of the project will feature four colored glass pylons that will change colors slowly throughout the evening hours. Additionally, the pedestrian-friendly development will offer unobstructed views of Pikes Peak and feature amenities that will highlight Colorado’s history, native animal and plant life, geography and geology, and the social, economic and educational contributions of Colorado Springs, as well as a statue of Kathryn Lee Bates, who is credited in writing “America the Beautiful” while sitting on Pikes Peak. All these aspects will combine to create the “Colorado Experience” theme of Colorado Crossing, the first phase of which is scheduled for completion November.

Baseline Marketplace

About 20 miles east of Phoenix in Mesa, Glimcher Ventures Southwest (GVSW) is developing Baseline Marketplace, a multi-phased mixed-use development. The 52-acre site will feature 175,000 square feet of retail space on 20 acres, approximately 350 residential units on 20 acres and an undetermined amount of office space on the remaining 12 acres.

Recent population growth and the construction of Loop 202 SanTan Freeway, spurred the development of Baseline Marketplace.

“[Loop 202 SanTan Freeway] now intersects with one of the state’s most trafficked highways, U.S. 60,” explains David Glimcher, president and CEO of Scottsdale, Arizona-based GVSW. “The site is located at the confluence of these two major freeways, which allows easy access to the area with a very large amount of daily traffic.”

With construction beginning this spring and completion of the entire project expected in 2009, GVSW is looking to fill a void in the Mesa community. The retail portion of the project is slated for completion between December 2008 and April 2009; the residential component will be completed in December.

“This emerging area of Mesa is long overdue for a project like Baseline Marketplace,” says Glimcher. “With more than 200,000 people living within a five-mile radius, there is a significant void in shopping centers.”

GVSW partnered with Trillium Residential to develop the residential component of the development, which was designed by Phoenix-based T2 Architectural Group. DeRito Partners has been retained to market the property.

Baseline Marketplace will deliver retail, office, restaurants and residential offerings to the underserved community. “Each development is geared to the surrounding area and our focus is to satisfy the lifestyle needs of the neighborhood,” notes Glimcher. “It’s important for us to be part of the community.”

12W

Gerding Edlen Development Co. has partnered with Downtown Development Group on 12W, a $94 million mixed-use project featuring retail, residential and office space in Portland’s West End neighborhood.

In Portland’s West End neighborhood, Gerding Edlen Development Co., along with Downtown Development Group, is in the process of developing 12W, a $94 million mixed-use project featuring retail, residential and office space that is poised to address critical needs of the underserved neighborhood.

“The development was driven by a combination of factors, including the need for density and rental housing, and positive steps towards reactivating the [West End] neighborhood,” says Patrick Wilde, senior project manager with Gerding Edlen Development.

With completion slated for September 2009, 12W will feature 10,000 square feet of retail space, 85,000 square feet of office space, 315,000 square feet of residential space, and a five-level, 125,000-square-foot below-grade parking area. Towering 22 stories, the project will provide neighborhood amenities, such as restaurants and shops, close proximity to mass transit stations, and walkability to the Pearl District, downtown and the central business district.

Designed by Zimmer Gunsul Frasca Architects to obtain LEED Gold certification, the tower will feature rainwater recovery, solar pre-heat for hot water, lighting control, a highly energy-efficient design and eco-roofs. The residential component will feature a private entry, private balconies on most units, and a rooftop deck offering panoramic views, an event room, a barbeque area and a firepit.

A forward step in the company’s development strategy of providing high-quality, highly efficient, sustainable projects, 12W is expected to be a wonderful amenity to the people who will live and work there as well as to the West End and surrounding neighborhoods, notes Wilde.

Summerlin Centre

General Growth Partners Inc. has teamed up with its affiliate The Howard Hughes Corp. to develop Summerlin Centre, a pedestrian-friendly mixed-use development located within the Summerlin master-planned community in Las Vegas. With first phase completion slated for fall 2009, the project will offer nearly 2 million square feet of upscale retail space; a non-gaming, luxury boutique hotel with a ballroom and conference facilities; entertainment and dining options; public plazas for cultural performances and community activities; 400,000 square feet of Class A office space; and single-family homes and condominiums. The company has already signed on two major retail tenants for the project. Seattle-based Nordstrom Inc. has signed a letter of intent for a two-level, 149,000-square-foot Nordstrom store, and Crate and Barrel is entering the Nevada market by developing a two-level, 34,000-square-foot Crate and Barrel Home Store at Summerlin Centre.

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