Shopping Centers Today

APR 2015

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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Page 47 of 83

Brentwood Town Centre, priced from about $300,000, and an additional 132 at its Lougheed Town Centre. Also in Burnaby, Beedie Development Group and Anthem Properties are teaming up to build about 1,800 homes to help form a new High Street near the giant Metropolis at Metrotown mall, where a new transit stop is in the works. All three centers are, in fact, connected to light-rail stops. "A station stop can be- come an attraction and drive the oppor- tunity for mixed-use — particularly with residential — in transit-oriented devel- opments," said Thomas. A Nielsen report last year on the influential U.S. Millennial population segment — people born between the early 1980s and the early 2000s — said that 62 percent of that demographic prefers living in walkable, urban-style, mixed-use communities near to their workplaces and to restaurants, shop- ping and transit. This is hardly news to other top re- tail developers, who are cashing in on the trend. Simon, America's largest owner of U.S. malls and outlet centers, is adding high-end residences to its Phipps Plaza property, in Atlanta's fash- ionable Buckhead district. Its Domain at Phipps Plaza, developed by partner Columbus Realty, will feature 319 mid- rise luxury residences when it opens this fall. An AC Marriot hotel is also in the works on that same property. "Residential and hotel developments represent asset enhancements, and we'll add them to our properties where appropriate," said Simon spokesman Les Morris. The Phipps deal follows another Simon residential add-on, at its nearly 60-year-old Southdale Center property, in Edina, Minn. The five-acre residential project features 232 units spread over three buildings, including a ten-story high-rise, developed by partner Stu- artCo. "It's a beautiful project located in what was a mostly unused area of the parking field, and the lease-up has been going extraordinarily well," Morris said. Proximity to the neighboring Galleria mall will no doubt help drive demand. General Growth Properties' pic- turesque Ala Moana Center, in Ho- nolulu, at 2.4 million square feet the largest shopping center in Hawaii, is also getting a residential component. The posh, six-building Park Lane Ala Moana project, under construction next to the Bloomingdale's in the under-renovation mall, will place 215 exclusively priced condos ranging from $1.2 million to $28 million on the mar- ket when it is completed, in 2017. The Howard Hughes Corp. has also started work on an ambitious redevel- opment, of Landmark Mall, in Alexan- dria, Va. This will add 400 residential units and 285,000 square feet of ad- ditional retail, with first-phase comple- tion slated for next year. In Plano, Texas, Dallas-based Cencor Realty is joining Amli Residential to build a four-story, 264-unit apartment complex at its West Plano Village center. Another retail lifestyle center with a strong residential component, the 1 million-square-foot Celebration Pointe, is taking shape in Gainesville, Fla. This is a three-party project between Gaines- ville-based SHD Development, Miami's 1220G and Atlanta's RaCo Real Estate Advisors. The group, which donated 100 acres of the site for use as conserva- tion land, will develop about 1,000 liv- ing units there, including a mixture of garden-style apartments, town homes and flats, added to an 80,000-square-foot Bass Pro Shops, a Hotel Indigo, a cin- ema and a 60,000-square-foot corporate home for locally based Info Tech. RaCo Principal Ralph Conti calls the transit- oriented development "a suburban site with a variety of urban components that will be dense and highly walkable." Such considerations as parking segregation, shared use of common areas and 24-hour security require- ments, among other nuances, make such mixed-use projects challenging, says Conti. "It takes an army of people working together to pull off one of these projects." Some logistical issues for mixed-use with residential have yet to be settled, such as whether apart- ment plumbing should penetrate the ceiling of the lower-floor retailer, or go into a false-floor crawl space created by developers, according to Steiner. Mall residential development ap- pears to be here to stay, observers say. Late last year Patrick Peterman, a Simon vice president, said the REIT continues to field numerous calls from residential developers seeking to strike mixed-use deals at its malls. "That's no secret that they really value the shop- ping center land," he said. Residential construction at exist- ing malls can often be accommodated on excess parking space, says Thomas. "Cities, counties and municipalities now view such parking as inefficient land use, and they want higher den- sity," he said. "That's the higher and better use that's emerging from that sea of surface parking." Almost uniformly, cities favor mixed- use developments over dedicated retail, particularly vertical projects. Three- or four-story urban mixed-use buildings with housing and other uses can gener- ate up to five times the tax revenue that traditional horizontal retail does, accord- ing to a study by Asheville, N.C.–based developer Public-Interest Projects. Said Thomas: "These are the malls of tomorrow." S C T 48 S C T / A p r i l 2 0 1 5 "It takes an army of people working together to pull off one of these projects."

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