FEATURE ARTICLE, OCTOBER 2004

ON THE RETAIL TRAIL
The retail sector is strong in the West as evidenced by the development activity in the region.
Brian A. Lee

Retail has always been a leading commercial real estate sector in the West. As other sectors experienced hiccups in the past few years, retail forged ahead. This activity and momentum are reflected in new development projects, a sampling of which follows.

Portland, Oregon

In the western Portland suburb of Hillsboro, Oregon, The Shops at Tanasbourne will open this month. Developed by Columbus, Ohio-based Continental Real Estate Companies, the 380,000-square-foot, $75 million lifestyle center will feature entertainment, restaurant and retail uses packaged in an attractive high-density town-center setting.

“It is an urban street lifestyle project that combines storefront parking, at-grade parking plus a parking deck,” says Jeff Zeigler, vice president of Continental Real Estate Companies. San Francisco-based Field Paoli Architects was the design firm for the project and Layton Construction the general contractor.

The Shops at Tanasbourne will offer a two-level 160,000-square-foot Meier & Frank and a 25,000-square-foot REI. The lifestyle development will benefit from Portland’s urban growth boundaries. “There are more than 225,000 people within 5 miles,” says Zeigler. “It is 10-plus miles away from the only other significant large shopping destination — Washington Square Mall.”

Southeast of Hillsboro in Tualatin, Opus Northwest and Gresham, Oregon-based Center Oak Properties are developing Bridgeport Village, a 505,000-square-foot lifestyle center featuring office, retail and entertainment space. Anchored by Crate & Barrel, Wild Oats Natural Marketplace and an 18-screen Regal Cinemas, the approximately $200 million development is set to open in May 2005. Crate & Barrel opens its first Oregon store next month.

“Our focus has been to bring either unique or first-store-in-the-market tenants to this area,” says Bruce Wood, director of real estate development in Opus Northwest’s Portland office. “We’ve been successful in doing so.”

Other Bridgeport tenants include Borders Books & Music, The Container Store, Coldwater Creek and Talbots. The lifestyle center will boast an impressive list of restaurant tenants including P.F. Chang’s China Bistro, McCormick & Schmick’s, California Pizza Kitchen and Macaroni Grill.

Wood compares Bridgeport Village to The Grove in Los Angeles. The open-air center with its central plaza and theater will provide a dynamic gathering place for visitors. Design firm Perkowitz + Ruth Architects was in charge of bringing an “urban sense” to the suburban development, which is being built on a former rock quarry. “The buildings are broken down into different façades of extremely high quality, character and uniqueness,” says Wood. “It will look like the center has been developed over time, similar to what you’ve seen in a downtown area.”

Not all retail activity in the greater Portland area is limited to the suburbs. Hoyt Street Properties has completed more than 50 percent of its $600 million redevelopment of a 30-block area in the northeast section of the Pearl District in Portland. The property consisted of old warehouses and distribution buildings and an abandoned rail yard.

“The creation of Hoyt Street Yards required the demolition of a bridge ramp, development of a streetcar trolley through the center of the neighborhood and tax incentives for the developer,” says Craig Sweitzer, principal at Urban Works Real Estate. It also required a commitment from Hoyt Street Properties to provide 3,000 housing units and 250,000 square feet of retail space as well as create three city parks. Sweitzer says that many older buildings in Hoyt Street Yards were rehabilitated into mixed-use residential and retail storefronts with an emphasis on recycling the existing materials.

Arizona

Tempe Marketplace

Retail development activity is hot in the Valley of the Sun. In January 2005, Vestar Development Company will begin developing the 1.3 million-square-foot Tempe Marketplace in Tempe, Arizona. The center will feature 110 national retail, entertainment and restaurant tenants, including Target, Best Buy, Dave & Buster’s, Barnes & Noble, Ross Dress For Less, Old Navy, Michaels, Cost Plus, Linens ‘n Things, Office Max, PetsMart and a 20-screen Harkins Theatre.

“This entertainment center, which combines specialty retailers with entertainment venues, theme-dining establishments and movie theaters, will create a new front door for the city of Tempe, drawing consumers from throughout the region,” says David Larcher, executive vice president of Vestar Development in Phoenix. “It also complements the developments at Tempe Town Lake, an artificial lake that has created a new center of commercial and urban residential development in metropolitan Phoenix.”

Vestar, Miravista Holdings and the city of Tempe have created a partnership to remediate the 200-acre site and develop the open-air center. Its mix of big box tenants and lifestyle offerings won’t be the only unique aspect of the development. The project partners have boldly planned the use of lasers in an elaborate lighting program that will span the property.

“Marked by large graphics, outdoor fireplaces, raised dining patios, water features and extensive landscaping in a mid-century tradition, Tempe Marketplace introduces a final bolt of energy with a light and a laser show to ensure an energized shopping experience,” says Mark Tweed of the Beverly Hills, California-based HTH Group.

True to its name, Westgate City Center in Phoenix will offer visitors, shoppers, diners, entertainment seekers and sports enthusiasts almost all the things they would expect to find in the downtown area of a major metropolis.

“With the projected lineup of a 20-screen state-of-the-art movie theater, multiple restaurants, drinking establishments and shopping opportunities, along with hotels, offices and residential space, Westgate will be a destination that both metro Phoenix residents and visitors will be drawn to week in and week out,” says Steve Ellman, head of developer The Ellman Companies and owner of the NHL’s Phoenix Coyotes.

The first phase of the development, The Village at Westgate City Center, will feature 280,000 square feet of retail and entertainment space. A 77,000-square-foot Loews Cineplex Entertainment cinema will anchor The Village.

Westgate City Center’s dining, shopping and entertainment offerings were designed to complement the approximately 18,000-seat Glendale Arena, home of the Coyotes, which was completed in December 2003. The sports and entertainment events held at the arena and the day-to-day offerings of Westgate will create a unique mix of leisure-time options.

“Westgate City Center is as much about energy, atmosphere and sense of place as it is about retail offerings,” says Steve Baeck, vice president of Development Design Group, the project’s designer. “Westgate’s design captures a dynamic, coordinated fusion of sporting events and complementary retail, restaurant and entertainment possibilities.” Westgate’s design incorporates dynamic graphic and signage elements. The center’s Events Plaza — an open space reminiscent of Times Square in New York — will evoke an almost festival-like atmosphere, says Baeck.

Salt Lake City

In September, Carlsbad, California-based developer Foursquare Properties finished the fourth phase of Jordan Landing, a massive retail and entertainment destination shopping center in West Jordan, Utah, a rapidly growing suburb of Salt Lake City.

The latest phase added Wild Oats Natural Marketplace, Bed Bath & Beyond, Kohl’s, Circuit City, Pier 1 Imports, PetsMart and Party America to an already impressive list of tenants that includes T.J. Maxx, Old Navy, Wal-Mart Supercenter, Sears Grand, Lowe’s Home Improvement Warehouse, Sam’s Club and Cinemark Theatres.

Now in its fifth year of operation, Jordan Landing is a 500-acre master-planned community and represents the largest mixed-use development in the state of Utah, offering more than 1.4 million square feet of retail, entertainment and restaurant space.


©2004 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.