COVER STORY, FEBRUARY 2007

SUPERSIZE IT
It’s bigger out West, including large developments that equate to cities within cities.
Brianne Gloski

Western-area developers seem to be taking stock in the slogan “bigger is better” as they lay plans for their multi-million — and sometimes billion — dollar developments. These projects combine all kinds of property types to create the ideal destination.

City North

The 144-acre CityNorth in northeast Phoenix will be completed in 2009.

Once Phoenix’s 144-acre “city within a city” is completed in 2009, the Northeast Valley will become a hot spot for shoppers, tourists, businessmen and even Phoenix residents. CityNorth, a development of Thomas J. Klutznick Co. and Kenneth Himmel of Related Urban, broke ground in November and, once completed, will feature 5.5 million square feet of retail, office, residential and hospitality space.

Located on Loop 101 at 56th Street just east of State Route 51, CityNorth has been a vision of the Klutznick family for more than 20 years, according to John F. Klutznick, vice president of Thomas J. Klutznick Co. “Over this time frame, many resources have been utilized to develop and protect the quality of this master-planned community,” says Klutznick. “The time for CityNorth is now with the convergence of area demographics, infrastructure, transportation, hospitality, retail, residential and office components that are all in alignment to allow this city within a city to occur.”

Other members of the project team include Elkus/Manfredi Architects and Nelsen Architects, which are in charge of the master planning and design services; Related Urban, which is responsible for national retail leasing; Southwest Retail Group, which is in charge of local retail and restaurant leasing; CB Richard Ellis, which is handling the office brokerage; and Signature Properties, which is managing the residential brokerage. The general contractors are Hensel Phelps Construction Co. and Sundt Construction.

The more than $2 billion project will feature various aspects of city living — landscaped plazas, fountains and sculpture gardens scattered among an integrated environment with shopping (including a Nordstrom opening in fall 2009), entertainment and dining options all a short walk away from both homes and offices. “With CityNorth, we have remained true to delivering the very best aspects of city living, including world-class shopping, gourmet dining, a five-star hotel and a vibrant business and residential community,” Klutznick says.

CityNorth will be developed in two phases, with the first phase consisting of 11 three- and four-level buildings located on High Street in the northernmost corner of the property. More than 290,000 square feet of local and national retailers and restaurants will be located at street level with 230,000 square feet of office space and 264 residential units located on the levels above. Completion of this phase is scheduled for spring 2008.

Phase II, scheduled for a fall 2009 completion, will extend south of High Street along 54th Street and around the project’s main plaza and boulevard areas. A four-star, 250-key business traveler hotel will anchor the west portion of High Street, and a five-star, 250-key, luxury hotel will be built on the east end of the project. Surrounding the plaza will be top-quality department stores, destination restaurants, bridge/luxury retailers and luxury residences. This phase will include 975,000 square feet of retail space, 235,000 square feet of office space and 571 residential units.

Once completed, CityNorth will be a major attraction for both the Northeast Valley and Phoenix. Its multiple components will combine to create a high-end development that can be enjoyed by everyone. “By providing an authentic urban experience and delivering an unparalleled level of quality and detail in all aspects of the development, CityNorth will draw from both the region and beyond,” says Klutznick.

The District at Tustin Legacy

A joint venture between Vestar and Kimco Developers, the $300 million District at Tustin Legacy in Tustin, California, will be completed in May.

In 2000, the City of Tustin was looking to include a retail component in its master-planned community, Tustin Legacy, that would be constructed on the site of the former Marine Corps Station in Orange County. Vestar Development Co. answered back with a proposed 1 million-square-foot, 90-acre project. The city needed only to tour the company’s successful Desert Ridge Marketplace lifestyle center in Phoenix to see that Vestar had the right idea.

Fast forward 7 years, and The District at Tustin Legacy is winding down to a May completion. Vestar/Kimco Tustin LP, a joint venture between Vestar and Kimco Developers, are constructing the $300 million project, located on the corner of Jamboree and Barranca Parkway. The retail center will be home to a wide variety of national, local and specialty tenants including Whole Foods, AMC Theatres, Target, Costco, Lowe’s Home Improvement Warehouse, Borders Books & Music, Strike Rock & Roll Bowling, RA Sushi, Lucille’s Smokehouse BBQ, the state’s first Go Roma, DSW Shoe Warehouse, PetSmart, Office Depot, Michaels, ULTA and Johnny Rockets. More than 50 tenants have already been announced to occupy space in The District at Tustin Legacy.

Vestar is excited for the project due to its prime location in retail hot spot Orange County. “Orange County has one of the strongest retail climates in the nation in terms of per capita spending,” says Jeffrey Axtell, project director for Vestar Development Co. “That fact, coupled with its healthy job market and booming residential growth, make Vestar very bullish on the Orange County market.”

The District at Tustin Legacy will be not only a shopping destination, but a place for Tustin residents and visitors to relax and spend the day. Outdoor living rooms with fireplaces and pop-jet fountains will be featured throughout the property, as well as a video wall and a performance stage. Shaded walkways with lush landscaping will meander around the shops, and these walkways and bike paths will connect The District at Tustin Legacy with the city and other components of the Tustin Legacy project.

The layout will provide shoppers the opportunity to shop in the lifestyle portion of the retail center located in the middle of the project or easily access one of the big box retailers located along the perimeter.

A project of this size is not without its challenges, according to Axtell. The Marine base’s existing underground infrastructure was outdated and obsolete, and Vestar was given the task of designing a whole new underground infrastructure for a large part of the land. “Given that The District at Tustin Legacy was the first project to break ground on the base, Vestar had to consider the projects that would surround The District and design underground utilities for those projects as well,” Axtell says.

Despite this initial challenge, construction at The District at Tustin Legacy has continued on, and Tustin residents are surely ready for May. Axtell is also anticipating a grand opening for the shopping center. “The District at Tustin Legacy will provide the retail, dining and entertainment experiences to match the residential and population growth that is occurring in the county.”

World Market Center

Las Vegas has long been associated with lights, gambling and over-the-top glitz, but once World Market Center opens on 57 acres in the heart of downtown Las Vegas, the city will also take the title of largest trade show complex in the world. Once fully completed in 2013, the complex will consist of 12 million square feet in eight buildings. Each of the eight buildings will be connected by sky bridges and showcase furniture, decorations, lighting, carpeting, home textiles and many other aspects of the home and hospitality furnishings business.

A development of World Market Center LLC and The Related Companies LP, with managing partners Jack Kashani and Shawn Samson, the $3 billion showroom and convention complex will consist of both permanent and temporary exhibit space. Those companies that have already signed leases for space in World Market Center include Ashley Furniture, Universal, Progressive, Vaughn Bassett, Douglas Furniture, Nourison Rug Corp., Oriental Weavers, Master Design, Chromcraft Revington, Best Master, AICO and Aspen/Furniture Values International.

These tenants are currently occupying or will occupy space in the first three buildings of World Market Center. The first building (Building A), which opened in July 2005, is a 10-story building totaling 1.3 million square feet and featuring 230 showrooms. Total cost for this building was $230 million. The $345 million, 16-story second building features 300 showrooms and 1.6 million square feet of space. Standing 378 feet tall, as the tallest building in downtown Las Vegas, Building B opened last month. Building C, scheduled to open in 2008, is the largest building in the complex, totaling 2.1 million square feet of showroom space. The Jerde Partnership designed the building, and The PENTA Building Group was awarded the construction contract for this 16-story, $550 million project.

The last five phases of the project will open up each year in succession, starting in 2009 and ending in 2013. The fourth and fifth buildings will measure 1.8 million square feet each, and buildings six through eight will each total 1.3 million square feet. Once World Market Center is fully built out, downtown Las Vegas will attract a different kind of crowd — but one with the same big dollars — from that which usually inhabits the casinos and hotels on the Las Vegas Strip.


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