COVER STORY, NOVEMBER 2004

MIX AND MATCH
Mixed-use and multifamily developments complement urban renewal and revitalization efforts.
Brian A. Lee

Mixed-use real estate developments naturally have more to offer consumers than their counterparts. This fact obviously boosts the appeal of these types of properties since, as the saying goes, variety is the spice of life. The connection becomes even stronger when a developer incorporates a residential component into a development.

Mixed-use development has been a principal way for real estate players to renew and revitalize urban areas. Through redevelopment, conversions and creative space usage, developers attract consumers back to the cities with a dynamic combination of living and work options, transportation accessibility, cultural diversity and economic growth opportunities.

MIXED-USE

The Mark

Douglas Wilson Companies is developing The Mark in San Diego’s East Village. The 32-story, $150 million project will offer luxury living just a few blocks from the San Diego Padres’ new ballpark.

Douglas Wilson Companies is keeping its eye on the ball with regard to the mixed-use and multifamily momentum in San Diego’s East Village. Already a leader in the city’s downtown redevelopment efforts, the hometown firm continues to tap into the energy that PETCO Park, the Padres’ new ballpark, has created in the downtown area.

In September, Douglas Wilson Companies began developing The Mark, a $150 million retail and residential project located just a few blocks from the new ballpark in the center of San Diego’s shopping, dining and entertainment district. When complete in early 2007, the development will rise approximately 380 feet and 32 stories and occupy a full city block. The Mark will comprise 220 one- and two-bedroom condominiums, 13 penthouse suites and 11 brick townhomes with 8,062 square feet of commercial space on the ground floor of the main tower.

“Not only will The Mark provide a centerpiece for the residential core of East Village, but it will also introduce a new style of architecture to downtown San Diego,” says Douglas Wilson, president of Douglas Wilson Companies. “It will provide much-demanded, ultra-modern urban residences while redefining San Diego’s eastern skyline.”

The Mark’s condominiums range in size from 800 to 3,500 square feet and in price from the low $300,000s to more than $3 million. The development is designed by Shears Adkins Architects of Denver and executive architects Martinez + Cutri of San Diego. The contractor is Hensel Phelps.

“Juxtaposing the gleaming tower is the ground-floor retail and walk-up townhomes, which will be inviting to pedestrians and reflect the heritage of this area which once was dotted with brick warehouses and factories,” say Chris Shears and Tony Cutri of The Mark’s design team.

Clayton Lane

Turning something commonplace into the place is what Denver-based The Nichols Partnership is doing with Clayton Lane, the firm’s $150 million-plus mixed-use development in the Mile High City’s Cherry Creek North commercial district. With the completion next month of the third phase, this massive development will offer a unique combination of office, retail, residential and hotel space where once there was an aged surface parking lot.

Clayton Lane, The Nichols Partnership’s massive mixed-use development in Denver.

“Clayton Lane is a true infill mixed-use project… that transformed a dated 130,000-square-foot Sears store with 650 surface parking spaces into a dynamic [property] that engages its surrounding neighborhood,” says Randy Nichols, president of The Nichols Partnership.

According to Nichols, the development is a result of a partnership between his firm and Sears & Roebuck Company. The first phase of Clayton Lane, completed in February 2003, comprised a five-level parking structure with 16,000 square feet of street retail, 5,300 square feet of office space and a new Sears Auto Center. With the help of general contractor MA Mortenson Company and designers David Owen Tryba Architects and RNL Design, The Nichols Partnership was able to build this phase around operating Sears and Whole Foods stores.

Phase II, finished in June, brought a three-level underground parking garage, 170,000 square feet of office, 50,000 square feet of retail, 5,000 square feet of special event space and a 196-room JW Marriott hotel to the mix. “The key catalyst for the project was securing a lease with Janus Capital Group for the 170,000-square-foot office building,” says Nichols. “The Janus lease allowed Nichols to commence construction and to secure key retail leases (Crate & Barrel), sell the hotel pad and commence pre-sales for the 25 luxury condominiums called 191 Clayton Lane.”

The 25 luxury condo units, 68,000 square feet of retail space including the Crate & Barrel store and completion of Clayton Lane, a private street anchoring the mixed-use development, are all part of the third phase. All in all, the 3-year multifaceted undertaking will transform one of Denver’s prime districts with the seamless addition of a Class A world office headquarters, a four-star hotel, luxury residences, more than 1,600 parking spaces and 350,000 square feet of unique retail space.

Burbank Civic Plaza

Complementing the Art Deco architecture of Burbank, California’s city hall with a modern style of design “that will stand the test of time,” Minneapolis-based KKE Architects is teaming up with Cusumano Real Estate Group to create the $20 million, four-story mixed-use Burbank Civic Plaza.

“It is an exciting mixed-use project that blends in with the existing civic uses in Burbank’s historic downtown,” says Brian Arial, managing principal of KKE Architects’ Pasadena and Newport Beach offices.

Upon completion in March 2005, Burbank Civic Plaza will consist of 60,000 square feet of Class A office space situated over 20,000 square feet of prime street-level retail. A below-grade parking structure featuring 80 spaces is already complete. The development is located at the previous site of the Burbank Police Station and across the street from Burbank City Hall. McCormick Construction Company is the general contractor for the project. KKE was selected as project designer by the city of Burbank and Cusumano from a group of five architectural firms.

KKE and Cusumano are bringing life to a site that had been vacant for almost 5 years. Arial says that the plaza area with its granite fountain and grassy open spaces will become the focal point of the property and make for a memorable destination for shoppers. KKE is using a “harmonic blend of stone, concrete and glass” in the exterior facade of the building to complement the charm of the plaza area. “Being on a busy street, the retail is set back from the street with a colonnade to strengthen the shopping experience and offer areas for eating and gathering,” says Arial.

Canyon Crossings at Canyon Springs

Of course, mixed-use development is not limited to the compact corridors of the city. The formula works in high-growth suburban areas as well. In Riverside, California, Transcan Development is developing Canyon Crossings at Canyon Springs, which will consist of approximately 748,000 square feet of retail and 144,000 square feet of Class A office space called Canyon Crossings Corporate Center.

The $42 million mixed-use project is located at the southeast corner of Interstate 215 and Highway 60 in the heart of Canyon Springs, a 180-acre master-planned commercial hub. The 274,000-square-foot all-retail first phase will be completed in fall 2005. Canyon Crossings’ retail component will comprise a new Wal-Mart store, a major appliance and electronics store, a fitness center and a 50,000-square-foot John’s Incredible Pizza among a mixture of other retail and restaurant offerings.

The impetus for this mixed-use development? The amazing growth of Riverside County and the Inland Empire, of course. According to Bob Bahen, CEO of Transcan, 943,000 people live within 20 minutes of Canyon Crossings. “There are thousands of homes that have been built in eastern Riverside during the last few years and construction still remains strong,” he says. “These new residents need a place to work, shop, dine and relax in one convenient location.”

The general contractor is Newport Beach, California-based Summit Builders, and MCG Architects and Designers Collective are handling the design work. Canyon Crossings’ vibrant, pedestrian-oriented setup will be made more appealing by MCG’s design, which incorporates California’s Mission style and Mediterranean architectural heritage.

MULTIFAMILY

Santiago Street Lofts

As mixed-use and multifamily approaches continue to facilitate urban renewal in Southern California, more and more people will take advantage of developments offering a combination of living space, work environment, transportation accessibility, cultural diversity and economic growth opportunities.

Santiago Street Lofts in Santa Ana, California, will no doubt further this real estate revitalization movement. Created by Lennar and Urban+West+Strategies, the 108-unit property will be Orange County’s first transit-oriented live/work loft community. Located adjacent to the Santa Ana Train Depot, the 195,000-square-foot Santiago Street Lofts will offer its residents modern urban living on the upper two floors and convenient work space on the ground level.

“This development brings a uniqueness of design, New Urbanism planning, pedestrian orientation and a sense of style and product that’s geared for a changing lifestyle and demographics for the home-based business,” say David DiRienzo, president of Urban+West+Strategies, and Doug Woodward, president of Lennar South Coast Division in Aliso Viejo, California.

Urban+West+Strategies and Lennar broke ground on the 4.3-acre project in July. The plans for the lofts include a two-car direct-access garage and unit sizes ranging from 1,500 to 2,200 square feet. The first phase of Santiago Street Lofts is expected to be completed in spring 2005.

Edgewater on Ocean

James Ratkovich, CEO of James Ratkovich & Associates, challenges you to find a better site than the one on which his company will develop the 21-story, 155-unit luxury condominium complex, Edgewater on Ocean, in Long Beach, California.

“Edgewater on Ocean is one of the finest development sites in all of Southern California,” says Ratkovich. “No other site north of San Diego and south of San Francisco can deliver a modern, urban waterfront lifestyle like the one that will be created there.”

James Ratkovich & Associates will team up with project architect Landau Partnership, interior design firm CNI Design and construction manager Investment Development Services to create this unique multifamily residence. Groundbreaking on the project is scheduled for mid-2005 with completion set for 2007. The luxury units at Edgewater on Ocean will range from the low $400,000s to more than $4 million. Located at the corner of Pine Avenue and Ocean Boulevard, across the street from the new 369,000-square-foot The Pike at Rainbow Harbor, the development will also feature 20,000 square feet of ground floor retail including an upscale restaurant, coffee house and gourmet market.

Residents will not only enjoy the luxury amenities and incredible views at Edgewater on Ocean, they will be surrounded by comfortable and functional style, highlighted by its “Miami Modern” architectural design. “It will fit in with the sophisticated studio lofts, outdoor cafes and retail boutiques that are now part of the renovated downtown Long Beach,” says Ratkovich.

The Plaza-Irvine

In early 2005, co-developers Opus West and Geoffrey H. Edmunds & Associates will break ground on The Plaza-Irvine, a luxury high-rise condominium community encompassing two 15-story towers in Irvine, California. The towers, the first of which will be completed in late 2006, will each feature 101 residences ranging in size from 1,200 to 4,400 square feet and in price from $600,000 to $3.5 million. The 15 stories comprise two levels of parking, 11 levels of single-story residences with balconies and eight, two-story penthouse residences on the top level.

Looking out from their high-rise condos, owners will enjoy panoramic floor-to-ceiling views of the San Joaquin Hills, Newport Beach Bay and Pacific Ocean. On the inside, residents will be able to enjoy The Terrace, an extensive recreation and entertainment facility that joins the two residential towers. Amenities will include a disappearing edge pool, a whirlpool spa, gardens, a state-of-the-art fitness center with massage and steam rooms, outdoor barbecues and resort-style cabanas.

“It’s one of the first high-rise communities to debut in Orange County,” say Geoffrey Edmunds, president of Geoffrey H. Edmunds & Associates in Scottsdale, Arizona, and Paul Marshall, senior vice president at Opus West’s Irvine, California, office. “The development will change the horizon of Orange County and also introduce a new style of living to [the area].”

McLarand Vasquez & Partners International is the design architect for The Plaza-Irvine while Parisi Portfolio and SWA are handling the interior and landscape design for the development.

Orpheum Lofts

Next month, Denver-based TASB LLC will complete the $15.6 million 137,734-square-foot Orpheum Lofts in Phoenix. The end result of this unique residential conversion will be 90 condominiums ranging from 700 to 3,000 square feet per unit. Nearly 48,000 square feet of the 11-story project will be retail space, 12,000 square feet of which is positioned on the first floor and basement levels. The Weitz Company is the general contractor for the project, and The Lawrence Group and Todd & Associates are the design and project architects, respectively.

“It is a great example of adaptive reuse, changing and modifying the original function of the structure from an office building to a residential living environment,” says Thad Kowalik of OTL Consulting Services. “It will really establish condo living in the core of downtown Phoenix. The only other [residential] projects right now are very small and primarily on the periphery.”

The project is a renovation of the 73-year-old The Phoenix Title & Trust Building. Because the property is on the the federal and city historic registries, the condo conversion was a delicate, surgical-like procedure in the heart of Phoenix. Among the various conditions that had to be met, the Orpheum Lofts project partners were restricted from altering the building’s art deco design, and Weitz could only pressure wash the exterior due to the sensitivity of the structure.

Coming from Denver, TASB was much more accustomed to this type of project, which is the first downtown Phoenix infill residential project, according to Daniel Bowers of Todd & Associates. Orpheum Lofts’ location will also allow its residents easy access to Phoenix’s new light rail system.

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