COVER STORY, FEBRUARY 2009

AWESOME ASSORTMENT
With mixed-use projects, western developers make their case for more efficient, attractive space.
Amy Bigley

Mixed-use projects continue to yield successful results throughout the West Coast. The current economic situation has caused a few obstacles for companies, but persistent developers are able to gather the pieces and restart the projects to create successful developments.

Point Ruston

The Copperline offers 143 waterfront condominiums at Point Ruston, which is located between Tacoma and Ruston, Washington.

Sandwiched between Tacoma and Ruston, Washington, Point Ruston is primed to be a welcomed mixed-use development in the Puget Sound area. Being developed by Point Ruston LLC, the 97-acre project will offer 1,000 residential condominiums, including approximately 50 townhomes; 36 single-family residences; and up to 225,000 square feet of retail and commercial space.

The path to Point Ruston was not as straight forward as many mixed-use projects. Although the property had been on the radar of local developers for years, the remediation of a 100-year-old industrial site was a lengthy process. Once the previous owner, Asarco, completed the demolition and clean up of the site, its desirability skyrocketed.

“A Request for Proposals was put forth, attracting more than 60 interested firms throughout the nation,” explains Mike Cohen, managing partner of Ruston-based Point Ruston LLC. “The process was complicated when Asarco filed for bankruptcy during the RFP process. The courts continued to solicit bids and Point Ruston LLC prevailed as the new owner.”

The waterfront property is ideal for development with its approximately 1 mile of Commencement Bay frontage, views of Mt. Rainer and the Olympic Mountain Range, and its proximity to city parks, the 702-acre Point Defiance Park and Zoo, Tacoma’s waterfront pocket parks and Restaurant Row.

However, having the dream waterfront location did not make developing Point Ruston easy sailing. There were a few complications along the way, including (1) the challenge of purchasing an asset out of bankruptcy; (2) negotiating with the EPA Consent Decree for the environmental remediation; (3) working with two local municipalities (Tacoma and Ruston) for land use approvals; and (4) gaining public support for such a major project on a site with a stigma in the community.

To add to the natural views and beauty of the project, the developer is reaching out to create a partnership with local artists, whose work will be featured at the development as part of Point Ruston LLC’s efforts to support local and regional artists in the community. The former Superfund site is also being constructed as a Build Green® community, certified as the highest level by the Pierce Master Builders Association.

Additionally, the completion of Point Ruston will create the final link in Tacoma’s waterfront walkway, which will extend the existing Ruston Way promenade to neighboring properties, including Metropolitan Parks’ Point Defiance Park and Tacoma Yacht Club and Restaurant Row on the Ruston Way Parkway. The final phases of the development are slated for 2014 to 2018. MC Construction Consultants is providing development management for the project.

“The building of this new community takes a prime piece of formerly industrial waterfront property and transforms it into an urban neighborhood with public access to the shoreline for the first time in more than a century,” says Cohen.

Century City

Next Century Associates LLC has unveiled plans for a $2 billion mixed-use project in the Century City area of Los Angeles.

Next Century Associates LLC, a partnership between Los Angeles-based real estate investor Michael Rosenfeld and an entity in the D.E. Shaw Group, has unveiled plans for a $2 billion mixed-use project to be located on the 5.75-acre Century Plaza site, which is located at 2025 Avenue of the Stars in the Century City area of Los Angeles. The 1.4 million-square-foot project will feature a 50-story mixed-use tower offering a 240-room five-star hotel, 163 hotel residences and 100,000 square feet of office space; and a 50-story residential tower offering 130 luxury residential condominiums. Additionally, the project will feature 115,000 square feet of retail shops and restaurants, a spa and a fitness center.

“The original design of Century City envisioned a lifestyle center around individual vehicles, parking in subterranean garages with access to both homes and offices through these garages,” explains Rosenfeld. “Green space was designed to be experienced as decorative rather than interactive and walking was limited to designated pathways, some underground.”

The company is now transforming Century City into a place where walking and the outdoor experience are prized. The project is being designed by Pei Cobb Freed & Partners, with the landscape and gardens designed by Ken Smith Landscape Architects. The $2 billion development is consistent with the city’s greening goals and will be LEED Silver certified upon completion.

“[The new project] will contribute substantially to a more beautiful public realm with green urban groves along Avenue of the Stars; two acres of public spaces, including a 60-foot water wall; and a central court highlighted with a palm grove,” notes Rosenfeld. “The plan will incorporate the latest green technologies and practices and will emphasize resource management and conservation.”

When completed the project will generate more than 1,000 permanent jobs and increase the city’s tax revenue by $7.7 million annually. Approvals are expected to be complete in 3 years. The property will continue to operate as a Hyatt Regency Hotel in the interim.

According to Rosenfeld, the proposed plan will integrate the hotel block into the urban mix and serve as a pedestrian crossroads for the center by opening to people, which will allow them to connect safely and easily to all corners of the project. Additionally, the development will help the city reach its goal of a 24/7 urban community with mixed-use elements, incorporating hotel, retail, office and residential, as well as a transit stop for the proposed Purple Line that will connect Century City with downtown Los Angeles and other parts of the city.

Villebois & Villebois Village Center

Being developed by Costa Pacific Communities and Granite Land Company, Villebois and Villebois Village Center will bring 1 million square feet of residential space and 40,000 to 70,000 square feet of commercial space to Wilsonville, Oregon.

Wilsonville, Oregon-based Costa Pacific Communities and Granite Land Company have partnered as Villebois Village Center LLC to develop an approximately $300 million transit-oriented, mixed-use project in Wilsonville. The project, which includes Villebois and Villebois Village Center, will offer 1 million square feet of residential space and 40,000 to 70,000 square feet of commercial space.

Expensive and extensive planning and entitlements are only a few of the obstacles the development team encountered with the project.

“There were numerous unique hurdles to leap including development of elaborate rainwater management scheme, a master parks plans detailing a variety of uses for more than 160 acres of parks and open space, incorporating housing for people with mental disabilities, and developing a plan for out-of-basin transfers of historic drainages,” explains Rudy Kadlub, CEO, and Andy Green, sales and marketing manager of Costa Pacific Communities.

Embodying the feeling of a European village with a piazza at its center, the 48-acre Villebois Village Center will feature row home, loft-style condominiums surrounding by mixed-use buildings, parks and transportation, including a commuter rail. The project also offers a variety of single-family homes in the mixed-use setting, including French Revival, American Classic, English Revival and American Modern designs. The project is slated for completion in 2015.

“The Villebois Village Center helps to balance the current imbalance of jobs to housing in the Wilsonville market,” notes Kadlub. “The center will bring to the market a diverse assortment of homes that range from affordable, which is currently not available in the area, to luxury row homes that creates a unique mix within the community.”

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