California is going to continue to out-perform the rest of the U.S.,” predicts Bernard Haddigan, managing director and national director of Marcus & Millichap’s national retail group. “Largely, it’s population-driven. Investors are paying significant premiums for that real estate. Capital wants to be there, people want to be there, and retailers want to be there. Most of the more vibrant retail concepts have expansion plans, and California’s on everyone’s radar screen. California will be the last to go down and the first to rebound in any development cycles you’re going to see.”

Not a bad endorsement. Yet California certainly has its development quirks: it’s a difficult state in which to obtain entitlements, but once you finally do get the green light, your retail property is apt to do very well. It’s a sort of reverse Catch-22 that makes it all worthwhile for California developers.

“If you can get a site approved, you don’t have to worry about a lot of competition,” says Randall Lewis, a principal and executive vice president with Upland, California-based Lewis Retail Centers, which develops mostly in the Inland Empire. “That’s sort of good news/bad news, but it’s a big part of developing in California.” In markets without high barriers to entry, it’s much easier to overbuild, he says. “In good times, great, everyone gets in and everybody’s happy. But in bad times, you really die. California’s just the opposite. There are a lot of barriers to entry.”

What drives most of the retail statewide is residential development, Lewis continues. “Developers really need to follow where the residential is going,” he says. “And it’s getting harder than ever to out-guess it.”

Mark Whitfield, executive vice president of development with the Costa Mesa, California, office of Donahue Schriber, concurs. “It is said that retail follows rooftops,” he says. “Obviously, the housing pace over the last 5 decades in California has fueled an active retail market.” Donahue Schriber anticipates breaking ground on seven new projects totaling $150 million this year, plus another $100 million in projects is already on tap for 2004.

Los Angeles/South Bay/Orange County

“Right now you’ve got a very strong economy in Los Angeles,” says Haddigan. “You’re seeing significant population growth and, generally speaking, California is positioned for the largest amount of population growth of any state in the union, including Texas and Florida. People want to be here. You see a lot of money moving through this place.”

No city knows that better than L.A.

The city moved up eight places in Marcus & Millichap’s 2003 National Retail Research Report rankings to Number 7 in the nation, based on a series of 12-month forward-looking supply/ demand indicators. Contributing to this impressive jump were factors such as continued market strength, the return of job growth and still-active construction. According to the report, in 2002, 5.1 million square feet of retail space was delivered, with another 4.2 million square feet scheduled for this year. A good portion of that is taking place right downtown.

“The core of downtown [Los Angeles] is being revitalized in a very, very big way,” says Duncan Lemmon, principal with Lee & Associates – Los Angeles North, Inc., based in Sherman Oaks, California. “That’s the attraction of downtown, and obviously, retailers are following. They want to position themselves in that marketplace as early as possible.”

In downtown Los Angeles, Lee & Associates and The Greystone Group are converting a former university building into 95 residential units with ground-floor retail, called Library Court.

Lee & Associates is currently involved in several downtown redevelopment projects, including The Greystone Group’s conversion of a former university club into 95 residential units with ground-floor retail. The project, called Library Court, is being designed by Levin & Associates. At Sunset and St. Andrews, Lee & Associates is pairing with Bond Capital on an urban infill project called Sunset at St. Andrews Hollywood, which will contain 20,000 square feet of ground-floor retail. The project is being designed by Roschen Van Cleve Architects. Also noteworthy, Lemmon says, is CIM Group’s retail and residential activity both downtown and in Hollywood.

In South Los Angeles, plans are moving forward on Marlton Square, a $123.2 million mixed-use redevelopment of the former Santa Barbara Plaza site. After negotiating since November 2002, the city council has now formally approved the project, which will mark the first such large-scale mixed-use redevelopment in that area of the city in more than 2 decades. Marlton Square will comprise 140 single-family homes, 140,000 square feet of retail, a senior housing complex and a site dedicated for public use. Many players are involved, including Capital Vision Equities and The Lee Group (which are developing the residential component), Regency Centers (which is leasing and managing the retail portion) and NFL receiver Keyshawn Johnson of the Tampa Bay Buccaneers. Johnson, a graduate of the University of Southern California, also teamed with Capital Vision Equities on Chesterfield Square, the first major retail development in South L.A. in 10 years.

M&D Properties’ expanded 425,000-square-foot Plaza Mexico project in Los Angeles is being marketed by NAI Capital.

Such urban infill is taking off all over Los Angeles. Not even typically underserved communities, like Lynwood, are left out. Take M&D Properties’ recently expanded 425,000-square-foot Plaza Mexico project, which is constructed in the style of a Mexican pueblo and features authentic Mexican architecture, monuments to historical Mexican heroes and weekly promotional celebrations highlighting Mexican fiestas. Tenants include Food 4 Less, Rite-Aid, Anna’s Linens, Emyco Shoes, ConstruMex, Don Roberto Jewelers, Cingular, Banco Popular, El Gallo Giro and Chuck E. Cheese.

“Just by developing that type of center, we’re experiencing top-of-the-market lease rates for the space here,” says Luis Valenzuela, executive vice president with NAI Capital Commercial, which is leasing the center. “It’s because of the originality of the concept. It’s very authentic, very exotic, very colorful — that in itself is going to be a big attraction.” Valenzuela compares the center to the exotic novelty of the culturally themed theaters in L.A.: Egyptian, Mayan, Chinese.

Valenzuela says such diverse and culturally aware developments are a step in the right direction. “Corporate America understands that there’s really a big underserved community, whether it’s an African-American community or a Latino community,” he says. “Now it’s much different. They really see the potential, and if there’s space available to put together 5 to 20 acres in any urban setting here in Los Angeles, there will be plenty of players in terms of tenants — which was not necessarily the case, say, 10 years ago.”

North of Lynwood, in Huntington Park, Los Angeles-based The Festival Companies is in the process of acquiring land along Slauson Avenue to construct El Centro de Huntington Park, a 900,000-square-foot mixed-use development consisting of major big box retailers, sit-down restaurants, residential units and a medical facility. Construction is expected to begin third quarter 2004. The Festival Companies also plans to develop a 600,000-square-foot project at Valley Boulevard and Santa Anita Avenue in El Monte, northeast of Huntington Park. Called Santa Fe Trail Plaza, the mixed-use development will offer retail, entertainment and residential components. It, too, is expected to break ground in third quarter 2004.

In Hollywood, the J.H. Snyder Company and Swinerton Builders have topped out West Hollywood Gateway, a major outdoor retail project at the corner of Santa Monica Boulevard and La Brea Avenue — another prime example of urban infill. Both anchors, a 140,000-square-foot Target and a 45,000-square-foot Best Buy, are designed specifically for urban locations. The two-level development will also incorporate the historic Formosa Café, a popular gathering place for actors adjoining the center. J.H. Snyder is currently negotiating with additional restaurants to round out the 250,000-square-foot project, scheduled for a March 2004 opening. Beverly Hills-based Lexington Commercial Holdings is J.H. Snyder’s investment partner on the project, which will cost an estimated $70 million.

“Right now there’s this push toward development more in central L.A. with some reuse opportunities there,” says Sandy Sigal, CEO of NewMark Merrill. “But it has been strong all over as far as we’re concerned.”

He says his company likes to develop near its offices because, to him, retail development is a very hands-on practice. “You have to be where your people are,” says the local developer. “California has the demographics, the weather, the strong retailer demand. And we’re here.”

NewMark Merrill just completed a redevelopment of a 455,000-square-foot center in Thousand Oaks and, in Santa Ana, it is redeveloping an existing 127,000-square-foot center on the corner of Bristol and Warner. The facelift includes new signage and some retenanting. Anna’s Linens has already been expanded and relocated. A new furniture retailer will also join the center.

In nearby affluent Irvine and Newport Beach, The Irvine Company (based in Newport Beach) knows a little something about developing close to home. In Newport Beach, The Irvine Company recently opened three new centers: Crystal Cove Promenade, a 126,121-square-foot center anchored by Trader Joe’s, Gap and Banana Republic; Newport Coast Shopping Center, a 102,959-square-foot center anchored by Pavilions and Wells Fargo; and The Bluffs, a 51,534-square-foot center anchored by Islands Restaurant.

“Lifestyle centers are an ideal fit with Orange County’s demographic,” says Keith Eyrich, president of The Irvine Company’s retail properties group. “We have also developed a Coastal Collection that showcases the California coastal lifestyle, complemented by distinctive shopping, dining and services.”

Eyrich says one of his company’s chief goals is to create ‘people places’ within its centers. “For example, Crystal Cove Promenade has a center courtyard where patrons can meet with friends, dine or simply enjoy the ocean view,” he says. “At The Bluffs, we created a covered outdoor courtyard with upscale furnishings and a fireplace.”

The Irvine Company also recently opened Trabuco Grove Shopping Center, a 117,000-square-foot Albertsons- and Kohl’s-anchored center in Irvine. Also in Irvine, the company is underway on Quail Hill Village Center, a 150,000-square-foot center opening spring 2004. Major tenants include Albertsons, Sav-On Drugs and Washington Mutual.

In Long Beach, Developers Diversified Realty (DDR) has two major urban retail projects, CityPlace and The Pike at Rainbow Harbor. Phase I of CityPlace, which is on the site of the demolished Long Beach Plaza mall, opened in 2002. It features 450,000 square feet of retail space, anchored by Wal-Mart, Albertsons, Sav-On, Nordstrom Rack and Ross, as well as 341 residential units. The Pike at Rainbow Harbor, opening this year, contains 369,000 square feet located between the Long Beach Convention Center and the Aquarium of the Pacific, which together attract more than 3 million visitors annually.

On the north side of town, Burbank and Glendale are both seeing exciting new mixed-use projects go up. In Burbank, the goal is downtown revitalization — and a significant key to its revitalization efforts is Burbank Entertainment Village, a 4-acre project underway by Champion Development. The 30,000-square-foot Phase I, which includes Macaroni Grill, Wolfgang Puck Express and Cold Stone Creamery, is now open. Anchoring the project is a 16-screen AMC Theatres megaplex, replacing its location across the street with a new prototype that will be used for all future AMC theaters. Plans for Phase II, which could include office and residential space as well, will be finalized and formally submitted to the city of Burbank this fall. Construction could begin as early as fall 2004.

In Glendale, California, Caruso Affiliated Holdings’ Glendale Town Center will offer 450,000 square feet of retail space, 100 condominiums for sale and 230 rental units. Ground breaks in early 2004.

In Glendale, Caruso Affiliated Holdings is developing a town center that will offer 450,000 square feet of retail space, 100 condominiums for sale and 230 rental units. Ground breaks on the project in early 2004. “It’s going to be somewhat similar in scale and size to The Grove, which we just completed in L.A.,” says Rick Caruso, founder and CEO of Caruso Affilated Holdings. “The difference is residential.”

Caruso says mixed-use urban infill projects like the new Glendale Town Center and The Grove simply reflect a growing trend in development. “Everything we’re working on is urban infill,” he says. “I think there’s a trend nationwide with that, especially with residential mixed-use. More and more young professionals are moving back into the city core. But land is scarce, particularly in Southern California. So if you can get through the entitlement process — which can be very lengthy, costly and difficult — urban infill is great because of the barriers to entry. You’re not going to have a lot of competition coming down the road, so you’re sort of protecting yourself from future development.”

Westfield Corporation, the largest owner of regional malls in California, has a number of Los Angeles-area projects either underway or in the pipeline, including the $98 million expansion of Westfield Shoppingtown Santa Anita in Arcadia, east of Glendale and Pasadena. The super-regional mall will add 250,000 square feet of new dining, entertainment and retail space in the northeast corner between Robinsons-May and JCPenney. The project, which broke ground in May, is expected to be completed by fall 2004.

In the Los Angeles pipeline for Westfield is an $85 million redevelopment of Westfield Shoppingtown Century City, which will add 70,000 square feet of specialty store space, flagship restaurants and the relocation and redevelopment of the mall’s food court and theater. The project is slated to begin later this year or early 2004. In Topanga, the Westfield Shoppingtown Topanga is set to undergo a $237 million redevelopment next year. The project includes a larger, relocated 220,000-square-foot Nordstrom, up to two new department stores and approximately 100 new specialty stores. Westfield hopes the improvements will reposition Topanga as the premier fashion center for the West San Fernando Valley.

Inland Empire

The Inland Empire: it’s not just suburban spill-over from Los Angeles anymore. No longer are people just living there and commuting into the city for work. Now more and more people work in the Inland Empire. And shop there, too.

“The Inland Empire is the fastest growing residential area in Southern California, and probably in the state,” says Randall Lewis of Lewis Retail Centers, which has been doing work in the Inland Empire for almost 50 years. “One estimate said that half of the new homes being built in Southern California are in the Inland Empire, because land is so scarce closer in. This is where it’s affordable and where the land is.”

Lewis Retail Centers’ Eastvale Gateway is underway in Riverside County.

The retail has followed in a big, big way. “This is a case where the jobs and housing are leading and the retail is following,” he says. The era of retail redevelopment, Lewis says, still lies ahead. Right now, the relatively young area continues to enjoy unparalleled new construction. Lewis Retail Centers’ Eastvale Gateway, an 800,000-square-foot community shopping center, is underway in an unincorporated part of Riverside County. The first tenants include The Home Depot, which will likely open in 2005. Restaurants, a health club and perhaps a movie theater are planned for the 80-acre site.

“What’s driving that center is it’s in a former dairylands area that is being converted to housing,” Lewis says. “So it’s just explosive growth. Most of the new housing is $300,000 to $500,000, which is relatively affordable here. So it’s in an area that’s sort of the closest-in area to Orange County and L.A. County that’s affordable — and yet still has very good incomes.” It’s a dynamic combination coveted by any retailer.

“Riverside-San Bernardino is growing like crazy right now,” says Marcus & Millichap’s Haddigan. “The 210 Freeway has been extended much deeper into Riverside County, so that’s opened up a whole new corridor in the north part of the county.” The subsequent explosion in homebuilding has spawned the need for new retail — and developers scramble to oblige.

Sandy Sigal says it’s been surprising just how strong the residential growth has been in the Inland Empire. What used to be the ‘boondocks’ is no longer. “Housing growth has always been driving a fair amount of the outskirt areas,” he says. “What’s been surprising to me is how much it has persisted. As a result, sites that we thought were outerlying have become more predominant.” He also says retailers today snap up sites in the Inland Empire much earlier in the development cycle than they ever would have considered not too long ago. “A grocery store might move into a site that’s still 2 or 3 years away from having the housing to justify what’s there,” he says. “So they’re making commitments earlier, which is good.”

In Riverside County, MBK is working on a Wal-Mart Supercenter-anchored power center. According to Andrew Trachman, president of MBK Southern California (part of MBK’s retail development group), the 400,000-square-foot project is currently in the pre-entitlement stage and looking at a 2005 opening.

“In the Inland Empire, there’s a combination of both available land and, in general, both political and community support for new retail projects because a lot of these communities started off as bedroom communities to either Los Angeles or Orange County,” Trachman says. “As commercial projects get developed, they provide opportunities for employment, which allows people who had moved out here and had been commuting [into the city] to avoid that commute. It’s the same rationale that’s driving urban infill projects.”

In Redlands, Southern California-based Majestic Realty is underway on the 125-acre Citrus Plaza; the first phase will include a 530,000-square-foot power center. Some of the center’s high-profile tenants include Kohl’s, Sport Chalet, Target, Cost Plus Imports, Barnes & Noble, Bed Bath & Beyond and Michaels. Next up will be a 1.35 million-square-foot lifestyle mall. The entire complex, which will open in 2004, is strategically located at the northwest corner of the 30 and 10 freeways — an ideal location to draw shoppers from nearby Loma Linda, City of Highlands and East Highlands Ranch.

Majestic Realty is also active in Walnut, where The Village is underway. Opening this fall, the 15-acre project will feature 130,000 square feet of retail space anchored by Staples, T.J. Maxx and HomeGoods. Millie’s, Applebee’s and McDonald’s are already open for business. TutorTime Learning Center, a daycare and preschool service provider, opened earlier this year. The center also enjoys a built-in consumer base of the more than 40,000 full-time students at nearby Mt. San Antonio College.

San Diego

Though slipping one spot in Marcus & Millichap’s 2003 National Retail Index rankings, San Diego remains one of the best retail markets in the nation, still clocking in at Number 3.

CB Richard Ellis is leasing and marketing Liberty Station, a 361-acre redevelopment of what once was San Diego’s Naval Training Center.

Continuing a recent trend of converting out-of-operation military bases into retail or mixed uses, one San Diego Bay project in particular is worth noting: Liberty Station, a 361-acre redevelopment of what once was San Diego’s Naval Training Center (NTC). Los Angeles-based CB Richard Ellis has been commissioned to lease and market the more than 1 million square feet of planned retail, office and educational space at the new waterfront community, which is being developed jointly by The Corky McMillin Companies and the City of San Diego Redevelopment Agency. The project will also incorporate residential, hotel, civic, cultural and recreational uses, including 125 acres of parks and open space and a nine-hole golf course. Construction is nearing completion on the office district, which will include seven buildings totaling 380,000 square feet at final build-out. The first two buildings should be completed this fall.

In Carlsbad, northwest of San Diego, Forum Development Group and Thomas Enterprises are developing The Forum at Carlsbad, a specialty retail center opening this fall.

Also in San Diego, Westfield Corporation has inked its first deal with Wal-Mart for Westfield Shoppingtown Parkway, a $26 million project that will feature a two-level, 160,000-square-foot prototype Wal-Mart store, to be designed as a true mall anchor. Construction is scheduled to begin in late 2003 or early 2004.

San Jose

On the way from L.A. to San Jose along Highway 101, in San Luis Obispo, MBK Southern California has finished its repositioning and renovation of the former Central Coast Mall. The enclosed mall, since renamed SLO Promenade, was acquired by MBK and completely razed and recast as an open-air community center, all in the name of ‘smart growth’ that would not interfere with San Luis Obispo’s already vibrant downtown core.

MBK’s SLO Promenade is an example of smart growth in San Luis Obispo.

“They had a movie theater downtown and didn’t want to see a movie theater developed on the outskirts,” says MBK’s Trachman. “They had specialty retailers in their downtown core, which included Gap, Victoria’s Secret, Barnes & Noble and so forth — and didn’t want to see those users pulled out of downtown. At the same time, they understood that some of the larger format retailers didn’t have homes in their downtown, and they wanted access to that type of retail without having to drive 50 miles to get it. So we were able to bring in retailers such as Bed Bath & Beyond, Cost Plus and Staples.” MBK also expanded the Gottschalks department store and added some larger format restaurants that couldn’t find homes downtown.

In south San Jose, Westfield Shoppingtown Oakridge is undergoing a $142 million renovation that will transform the 30-year-old mall from 780,000 square feet to more than 1 million square feet of retail, entertainment and dining options. The mall is also adding about 70 new fashion retailers, which will open this fall, along with new lifestyle elements, family entertainment and five new restaurants. New retailers joining the expansion include Linens ‘N Things, Borders, Starbucks, Cold Stone Creamery, The Cheesecake Factory, California Pizza Kitchen, BJ’s Restaurant & Brewhouse, Sushi Boat and a family-style Italian restaurant. In November, Century Theatres will also come on board with 20 new screens, all outfitted with stadium-style seating. San Carlos, California-based Wentz Group is constructing the new 92,000-square-foot megaplex, which was designed by San Diego-based Fehlman LaBarre Architecture & Planning. A 70,000-square-foot expansion of Macy’s is also slated to open in November. In addition, two new multi-level parking decks will bring the total available parking to 5,000 spaces.

In nearby Sunnyvale, Forum Development Group is underway on The Forum at Sunnyvale Town Center, a 1 million-square-foot mixed-use development in the heart of Silicon Valley. Approximately 850,000 square feet of specialty retail stores and restaurants, as well as 200,000 square feet of office buildings, will serve the surrounding communities of San Jose, Palo Alto and San Mateo.

In Fremont, Lafayette, California-based Main Street Property Services has partnered with the city of Fremont to develop and implement a business recruitment strategy for the Niles District, an under-performing retail trade area that lacks a critical mass of quality retail. Main Street Property Services plans to upgrade the corridor through project positioning, aggressive marketing, public relations and tenant evaluation. The company has done similar work in the city of Emeryville, helping to revitalize San Pablo Avenue.

San Francisco/Sacramento

San Francisco boasts some of the most affluent residents in the nation, which should continue to spur expansion among retailers, predicts Marcus & Millichap in its 2003 National Retail Research Report. According to the report, one of the city’s largest projects is 835 Market Street, a redevelopment of the Emporium building, which will become home to Bloomingdale’s western flagship store, as well as office space and another 320,000 square feet of retail space. Plans are also underway to link the 835 Market Street project, developed by Forest City, to San Francisco Centre, a 1.5 million-square-foot center owned by Westfield. The $390 million collaboration will open in summer 2006. Groundbreaking is set for later this year.

In the Bay Area-town of Daly City, Serramonte Center is undergoing a complete redesign and remodel of its Center Court, in celebration of the mall’s 35th anniversary. The Center Court refurbishing is Phase I of a mall-wide remodel that will take place over the next year without interruption of business. Once complete, the new Grand Court will feature a koi pond and a new café with a teahouse motif. Bamboo, river rocks and slate floors will complete the feng shui look, designed by Seattle-based Callison Architects. Phase I renovations will open in November; the second phase, which will include upgraded signage and a new main entry between Target and Mervyn’s, is slated for 2004. Serramonte Center is owned by San Francisco-based Capital and Counties U.S.A., Inc.

Located 90 miles southeast of the Bay Area and 15 miles south of Modesto, in the heart of California’s Central Valley, is Monte Vista Crossings Shopping Center in Turlock. The 70-acre project — now in Phase III development by Majestic Realty — will ultimately feature 750,000 square feet of promotional retail, restaurant and hotel space. Now open are Borders Books, Bed Bath & Beyond, The Home Depot, T.J. Maxx, Pier 1 Imports, Safeway, Ross and Target. Kohl’s is expected to join in March 2004. A 62-room Holiday Inn Express is also underway, with completion scheduled for year-end.

North of the Bay Area, in Hercules, Lewis Retail Centers is underway on a 170,000-square-foot neighborhood lifestyle center called Bayside Marketplace, opening in 2005. Principal Randall Lewis calls the project “a classic infill site” that will also feature 300 homes for sale.

Lewis Retail Centers has another retail project in Sacramento called the North Natomas Town Center, a 200,000-square-foot neighborhood center in the center of one of the company’s planned communities, directly opposite the Arco Arena, where the Sacramento Kings play basketball. Lewis says the project, which will include a small residential component, should open mid-2004.

“The Sacramento region is red-hot right now,” he says. “It has not been affected by the downturns that hurt much of other parts of Northern California. It’s not dependent on one industry; it’s a very diverse area. Another reason is quality of life: Sacramento’s a really good place to live.”

And that’s the thing — the entire state of California is a good place to live and do business. The retail continues to follow that lead.

Open for Business At the vanguard of the Inland Empire, Corona, California, sets the tone for the region’s stout economic development. Brian A. Lee If the city of Corona is the gateway to Southern California’s Inland Empire, then the gates are open for business and have been for some time. Nancy Martin, the city’s economic development manager, can attest to that. “Corona is in a very unique position… [We’re] going to become a very, very popular area for people to look at as far as the next phase of office development and retail development as the coastal towns of California get built out,” she says. “So we get all of the first waves of migration on all levels.” Advantages to being the point city in this burgeoning area east of Orange and Los Angeles counties aren’t limited to just its geographic location. The Inland Empire outpaced the rest of the state in job gains in the last year and its apartment and industrial sectors are among the strongest in the nation. Also, Corona boasts an average household income of more than $73,000. Corona welcomes all, whether consumer or corporation. To that end, Martin and her economic development team are busy laying the groundwork for the city’s economic growth while laying down the red carpet for its newcomers. Significant strides have been made in attracting businesses to Corona. In the next 2 years, approximately 700,000 square feet of new office space will be developed there. On the retail side, more than 2 million square feet of space is currently under development, with projects ranging from The Crossings, a large power center in South Corona, to the Dos Lagos lifestyle center, which will be developed by Poag & McEwen. Dos Lagos, part of a 550-acre multi-use development, is located on Interstate 15, just south of 91. This 600,000-square-foot lifestyle center will be accompanied by three hotels — a resort conference center, a business hotel and a family hotel — as well as a championship golf course, 600 executive homes and a business park. Approximately 2 million square feet of retail will be located on the other three corners of the freeway interchange. The Crossings, located at I-15 and Falco, contains a Kohl’s, Target and Best Buy. Regal Cinemas is building a new mega-center theatre complex in the power center, and several major restaurant chains will fill out the space. “For a city of only 140,000 people, we get two Home Depots, we have two Wal-Marts, we have two Kohl’s department stores — we were the only city to receive two Kohl’s department stores. They made their big push,” Martin says. The city of Corona is seeing its share of mixed-use development projects including Corona Pointe, a 52-acre development that contains over 500,000 square feet of office facilities and 300,000 square feet of retail space. Upcoming restaurant and retail tenants at Corona Pointe include Lowe’s Home Improvement, Islands Restaurant and Chuy’s Mexican Restaurant. The north side of the property will feature one six-story, two three-story and various other garden-style office buildings. “[Corona Pointe] is a nice project for our city because it will include some of the taller class A office buildings as well as the very entrepreneurial, cluster-style office buildings which range in size from 4,000 square feet to 11,000 square feet so that a small company can actually purchase its own office building,” says Martin. In addition, more than 1 million square feet of manufacturing space is being developed in Corona, which will bring the total figure for that real estate sector to more than 30 million square feet. As new developments pop up seemingly everywhere in Corona, the city’s economic planners continue their focus on redevelopment. After the success of the North Main District project, the concentration will shift toward Sixth Street, Corona’s downtown area. “We’re looking at ways to promote the rejuvenation of this area and we may follow along some of the same lines that we did on the North Main area, where we invested quite a few dollars into a new streetscape program that uplifted the area and showed potential investors and the businesses in the area that we meant business, that we were willing to invest in this area,” says Martin. The city’s willingness to fund revitalization projects in such areas signals to established businesses and potential developers that there’s a commitment to their economic viability and appeal. “That kind of sets the chain reaction for others,” says Martin. “It says, ‘Well, you know what, they’re doing things here that are kind of neat. Now I can put some money into this area myself.’” On North Main Street, Arizona Partners purchased the old Butterfield shopping center with plans to remodel the property. The firm completely demolished its front buildings and is installing new restaurant pads. Mervyn’s has committed to the space already with more tenants to follow. The city of Corona’s financial assistance program operates on a case-by-case basis. Realizing the importance of small businesses and the unique charm they bring to the city, the Corona economic development team has implemented a special “sign and façade” program designed especially for small business and property owners located along the redevelopment areas of Sixth Street and the North Main District. The city will match up to $20,000 for sign improvements and façade remodeling.

COLLIERS SEELEY’S LUCKY SEVEN Ventura County has always been an ace in the hole for Colliers Seeley International, which is currently involved in seven standout retail developments there. Western Real Estate Business recently discussed the projects with Linda Hagelis and Bill Hagelis, both vice presidents of retail properties in Colliers Seeley’s Ventura County office. “The 700-acre RiverPark property is really the premier project planned for the west county,” Bill Hagelis says of the master-planned development that will break ground in Oxnard in 2005. The entertainment/lifestyle project, which Colliers is brokering, will contain 1 million square feet of retail and 2,800 housing units. Joining the RiverPark site along the 101 Freeway is the recently completed Esplanade Shopping Center, a large redevelopment of a traditional indoor mall from the 1970s. Colliers Seeley is the leasing agent for developer M&H Realty Partners, which has redeveloped the mall into a Home Depot-anchored promotional center. “We’re on the last phase of it now,” says Linda Hagelis. “Ulta Cosmetics and Kaufmann’s will open later this year.” Other tenants include Nordstrom Rack, Borders, Cost Plus, T.J. Maxx, Staples and Circuit City. “It’s really one of the kick-offs to redevelopment in the Oxnard area,” adds Bill Hagelis. On 60 acres adjacent to RiverPark and across Oxnard Boulevard from Esplanade is another mixed-use project in the planning stages. Developed by Newport Beach, California-based CT Realty, the Wagon Wheel redevelopment will contain retail, multifamily and office components. The retail might span 25 of the 60 acres, says Bill Hagelis. Another CT Realty redevelopment in Oxnard is Carriage Square, a 19-acre redevelopment of a former grocery store site. In Thousand Oaks, Robertson Properties Group is nearing completion on a new 130,000-square-foot regional center anchored by Kohl’s. The Los Angeles office of Colliers Seeley is leasing and marketing the center. Robertson Properties Group and Colliers Seeley’s L.A. office have also partnered on the brand-new Ventura Gateway, a 268,772-square-foot power center in Ventura. Tenants include Barnes & Noble, Pier 1 Imports, Kohl’s, Linens ‘N Things, PetsMart and Michaels. In nearby Moorpark, Los Angeles-based Zelman Retail Partners is busy with Moorpark Marketplace, a new 358,000-square-foot power center anchored by Target and Kohl’s. Colliers Seeley is marketing that center as well. — Katie Foxworth

©2003 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.