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COVER STORY, SEPTEMBER 2006
LIVE, WORK AND PLAY IN YOUR OWN NEIGHBORHOOD
Mixed-use developments are the current sweetheart of the real estate industry, and the Northeast is no exception.
Compiled by Dan Marcec and Stephanie Mayhew
New Urbanism, conceptual city lifestyle and smart growth are the new buzz words in mixed-use development. Developers are creating environments that meld the trendiness and convenience of the city, the tranquility and pristine nature of suburban life and the small town feel of a bygone era. Northeast Real Estate Business profiled nine different mixed-use developments throughout the Northeast to give you a glimpse at a special type of development that is popping up just about everywhere.
Justison Landing
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Once completed, Justison Landing in Wilmington, Delaware, will be the largest development in Wilmington’s history, along with being Delaware’s only (to-date) live, work and play project.
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An area that was once a questionable brownfields along the waterfront of the Christina River is to become Wilmington, Delaware’s biggest development. Robert Buccini, co-president of The Buccini/Pollin Group and the developer of the project, says, “Justison Landing will be the largest development in Wilmington’s history, along with being Delaware’s only (to-date) live, work and play project. The community will offer an urban lifestyle as well as the benefits of neighborhood living.” In terms of revenue, Justison Landing will bring in excess of $7 million a year in tax revenue to the city of Wilmington, and nearly $20 million in tax revenue annually to the state of Delaware.
The ground-up development, designed by architects Burt, Hill of Philadelphia, is comprised of five parcels, is situated on 11 acres, and will include retail, commercial and residential space. The retail component consists of four single-story buildings totaling 98,000 square feet. The commercial component contains two six-story buildings totaling 300,000 square feet. The residential portion is still being modified according to demand, but will contain approximately 80 apartment units; 50 townhomes separated into two two- and three-story buildings that will feature residences ranging from 1,800 to 3,000 square feet; 260 condominiums that will be split up among four single-story buildings and will feature units that range from 800 to 2,000 square feet; and 184 loft units that will comprise four high-ceiling single-story buildings that range in size from 800 to 2,000 square feet. At this time, there are no secured retail tenants, although negotiations have begun with 10 different retailers. The developers are looking to attract tenants that complete the concept of a self-contained environment, complete with high-end grocery, pharmacy, banking, fitness facility, restaurants and a wine shop.
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The office portion of Justison Landing in Wilmington, Delaware, contains 300,000 square feet of space.
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Buccini says, “Justison Landing will put residents in the heart of everything, from transportation to shopping and culture. With the entrance to I-95 to the east and the Amtrak train station and SEPTA regional lines a mile to the north, the development will provide easy access to Washington, D.C., Philadelphia and New York City,” he adds. Outlet shopping is available south of the project, but once Justison is complete, the development itself will offer a variety of retail shopping, restaurants and other amenities on site. Justison Landing is also a short distance from downtown Wilmington, including the Delaware Center for Contemporary Arts, Frawley Stadium, the Chase Center on the Riverfront, Delaware Theatre Company and the Riverfront Market.
The Mottola Group is in charge of all leasing for the development. Construction on the $500 million project began in May 2006 with the official groundbreaking on June 7, 2006. Construction on parcels 2 and 4 began in May 2005 with anticipated delivery in September 2007. Parcel 1 will follow, then Parcel 5. Parcel 3, the office tower, is currently in the design stage.
Harrison MetroCentre
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Harrison MetroCentre in Harrison, New Jersey, is comprised of 3 million square feet of office space, 300,000 square feet of retail, a 25,000-seat stadium and 3,500 housing units.
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Harrison MetroCentre in Harrison, New Jersey, is a redevelopment that will feature 3 million square feet of office space, 300,000 square feet of retail, a 25,000-seat stadium and 3,500 housing units that will include a variety of residential opportunities such as flats, rentals, lofts and townhouses. “The project was designed around the principles of New Urbanism, which incorporates the best of traditional urban life while acknowledging the benefits of fresh air and nature not often found in an urban setting,” says Thomas S. Michnewicz, the senior vice president and chief operating officer for Advance Realty Group Development Corporation. Michnewicz further notes that the project’s location allows those who live and work in the development to take advantage of the business and cultural riches of Manhattan, which is only a short train ride away. The development is also strategically located along Amtrak’s northeast corridor line and the PATH line, which provides access to Newark and Manhattan. The location of the MetroCentre also provides its residences and tenants with a bevy of entertainment options. Just across the river in Newark is the New Jersey Performing Arts Center and the future home of the New Jersey Devils Hockey Team.
The project will include a variety of opportunities for dining and shopping, and is pedestrian friendly with wide sidewalks and tree-lined boulevards. A landscaped waterfront park has also been designed along the Passaic River with pathways for biking, running and other recreational activities. “This project promises to be a great boon for the area by taking underutilized land and restoring it to the town tax rolls, which will result in a significant increase in tax revenues to Harrison,” says Michnewicz.
The developer, owner and leasing agent for the the project is Advance Realty Group of Bedminster, New Jersey. The architect is HLW International, LLP. Vertical construction is slated to begin in summer 2007.
CitySquare
CitySquare, a mixed-use redevelopment that is replacing an existing greyfield mall, is situated on 20 acres in Worcester, Massachusetts. According to Barbara Smith-Bacon, vice president and project manager for Berkeley Investments, the area around the CitySquare development is designated as an Innovation District. “The buildings that were designed for this project are intended to capture the vision of the city while melding with the many beautiful surrounding historic structures from the golden age of Worcester,” says Smith-Bacon.
With careful planning, the $563 million CitySquare is a shining example of a transit oriented development and smart growth. Smith-Bacon notes that the development has been designated the catalyst project for downtown Worcester for good reason. “This project is restoring activity and vibrancy to the heart of Worcester, which had lost appeal when the existing mall, which had physically dominated the heart of downtown, fell to more modern competition,” she says.
The project currently contains 485,000 square feet of existing commercial office space that is being repositioned. Future construction includes approximately 400,000 square feet of new and repositioned retail and entertainment space, all of which is pedestrian street-accessed. The project also includes 275,000 square feet of medical/clinical space, approximately 300,000 square feet of new commercial office space and 650 housing units that are being built in three phases. Once the project is complete, it will contain a total of 1.6 million square feet of mixed-use space, plus 3,900 parking spaces.
Keeping in line with the principles of a transit oriented and smart growth development, CitySquare is a walkable development with easy access to countless venues. The area will include a large central public plaza with a water feature, and a block away is the existing renovated Worcester Common, a park that features benches, plantings, and the bike path gazebo. Residents and tenants will have direct access to public transportation by bus, bike and train.
In addition, residents will enjoy many other amenities. Condominium owners in Phase 1 will enjoy concierge services, parking beneath the building, terraces and fantastic views. The development will also include local, regional and national specialty retail stores, a variety of food and beverage destinations and entertainment such as cinema, bowling and billards.
The developer is Berkeley Investments, Inc. of Boston, Massachusetts; the owner is Worcester Renaissance LLC, c/o Berkeley Investments of Boston; the leasing agent is Glickman Real Estate of Worcester; and the architect is Arrowstreet, Inc. of Somerville, Massachusetts. Construction is scheduled to start in the first quarter of 2007 and finish in the third or fourth quarter of 2009.
Wayland Town Center
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The design of Wayland Town Center in Wayland, Massachusetts, was heavily influence by the original buildings in the town of Wayland.
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Wayland Town Center in Wayland, Massachusetts is a $100 million mixed-use development that will include commercial, residential and retail space. The development boasts Main Street style design and architecture with heavy influence from the original buildings in the town of Wayland. According Frank Dougherty of Twenty Wayland, LLC., a joint venture between between Congress Group and KGI Properties, “the vacant Raytheon office building was the catalyst for the project. The office market in the town was soft, so the owners began to look for another use for the land. They recognized the need for a retail market and residential housing in the town, so the plan for a mixed-use development was devised,“ he says.
The commercial component includes 165,000 square feet, 8,000 square feet of which will be designated for office space. The residential portion is comprised of 100 units of for-sale condos ranging in size from one- to three-bedrooms totaling 167,500 square feet. The retail portion will include an anchor grocery store of approximately 45,000 square feet, two stores ranging from 10,000 to 15,000 square feet, three stores between 7,000 and 10,000 square feet, and five stores that will range in size from 5,000 to 7,000 square feet.
The former Raytheon property will house the remaining 40,000 square feet of municipal space, which the development team, Twenty Wayland, LLC., hopes will become a library. “The site also contains a brownfields element, which once remediated will allow the town to capture the aesthetic view of the Sudbury River,” says Dougherty. Unique amenities for the development include 10 acres of open space, a 2.5-acre town green with amenities such as a gazebo and a possible ice skating rink. Twenty Wayland, LLC. has also donated a substantial amount of money to the town for improvements such as a bike path and improvements to the adjacent road system to correct existing safety hazards. The developers are also paying up to 76 percent of the cost for a new town wastewater treatment plant.
The development team hopes that the project will bring retail dollars back to Wayland, since currently a tremendous amount of retail dollars are spent outside Wayland. In addition, it will be an immense financial benefit to the town from a tax perspective. “Overall, the site itself is remarkable in terms of the access to the river and the ability to construct a project of this size and scope that is conveniently adjacent to Route 20. It is a great opportunity for the town because it fully addresses the town’s master plan in terms of the need to increase their commercial tax space and to redevelop an abandoned site,” says Dougherty.
Twenty Wayland, LLC. is currently developing the commercial and residential components of the project and the tenant mix should be finalized by the early fall of this year. Groundbreaking is slated for winter 2008 and the project is scheduled for completion by fall 2008.
Maxwell Place on the Hudson
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Maxwell Place on the Hudson in Hoboken, New Jersey, is situated on 24 acres with a total area of approximately 1.9 million square feet.
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Maxwell Place on the Hudson in Hoboken, New Jersey, is a ground-up development composed of residential, retail and office space, plus 5 acres of open space. “The idea for Maxwell Place on the Hudson sprang from the site’s most distinguishing characteristic — breathtaking views of the Manhattan skyline,” says James M. Steuterman, senior vice president of Toll Brothers, City Living, the owner of the project. The development was designed to combine the rich history of Hoboken, the spectacular views and the desires and needs of the modern consumer. “The most challenging aspect of the design for this project was making sure that the proposed buildings tied into their surroundings in an appropriate fashion, and the result is truly the best of both worlds,” says Steuterman.
The $580 million project comprises a total of 24 acres with a total area of approximately 1.9 million square feet. The development is broken down into four main buildings. Building A is a 12-story tower with 169 units that contains 226,997 square feet of residential space, 11,766 square feet of commercial space and 203 parking spots. Building B is comprised of two 12-story towers connected by a seven-story building to the west and a five-story building to the east. It contains 498,033 square feet of residential space, 41,218 square feet of commercial space and 832 parking spots. Together Building B contains a total of 376 units. Building C is made up of one 12-story tower and one six-story tower that contains a total of 171 units. Combined, both towers contain 191,129 square feet of residential use, a 51,466-square-foot commercial component and 412 parking spots. Building D is one 12-story tower with 84 units. It is composed of 99,352 square feet of residential space, 82,655 square feet of commercial space and 38 parking spots. The total commercial space is approximately 100,000 square feet of retail and 80,000 square feet of office, which contributes to Maxwell Place’s concept of a “city living lifestyle.”
The two most unique aspects of this project are the 5 acres of open space bordering the Hudson River and the spectacular view of the Manhattan skyline. Other unique characteristics include four easy ways to access Manhattan, a city living lifestyle, high-end residences and streetfront retail for convenient shopping, parking and interiors and lobbies designed by Michael Graves. “Hoboken is a town on the rise and the completion of Maxwell Place on the Hudson will add to its growing prestige. The waterfront park and proposed retail options will create a destination location, not only for the homeowners but for all Hoboken residents,” notes Steuterman.
Amenities will include a 24-hour concierge, a fitness club, a private resident’s club, rooftop pool and lush gardens, underground parking with valet service and a spectacular waterfront park.
The developer is PT Maxwell LLC of Hoboken, New Jersey; CB Richard Ellis is managing the leasing for the project; and the architect of Building A is Dean Marchetto, Building B is being designed by Perkins Eastman, while Building C and D are still being determined; and the interiors are designed by Michael Graves. Construction began in April 2005 and is anticipated to be complete in June 2010. Building A is set to open in November 2006 and Building B is slated to open in December 2007.
Worthington
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The developers of Worthington in Malvern, Pennsylvania, jumped at the chance to develop the 100-acre, mixed-use community in such a vital, but underserved community.
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Despite being a wealthy suburb with country clubs, private schools and large homes, the area of Malvern along Philadelphia’s Main Line has very little retail. The area is also home to major corporations such as Vanguard, Wyeth Pharmaceuticals, Shared Medical Systems and HBO; yet, the area has few restaurants. After watching the Worthington Steel Mill site for more than 20 years, O’Neill Properties jumped at the chance to own such a large piece of land in such an excellent location.
“We recognized that the area was completely underserved and provided a highly sought after residential market that is highly educated and very wealthy,” says James E. Savard, vice president of acquisitions and transactions at O’Neill Properties, the developer of the project.
Worthington is a 100-acre live, work, and play community that will transform the site of a former Worthington steel factory. The $500 million ground-up, mixed-use development will boast more than 700 multifamily residences, more than 650,000 square feet of commercial space that will include a lifestyle retail, restaurants, entertainment and Class A office space. Under the principles of New Urbanism, Worthington will include a tree-lined town center and Main Street, a restored and environmentally significant stream, walking trails, parks and gazebos.
Architects Antunovich Associates of Chicago, Illinois, used New Urbanism design principles to develop a single structure that can house a mix of uses, including retail, office and residential, and provide a traditional town experience that reinforces the lifestyle of area residents and commuters alike. “Worthington is designed to look classic and permanent. The finished product will be extremely high-end and durable — it will look like it has been here for 40 or 50 years,” says Savard.
Key amenities include a town square, a connection to and extension of the Chester County Rails-to-Trails bike path and the re-opening of Little Valley Creek, which is currently enclosed in a pipe under asphalt paving.
The office leasing will be overseen by O’Neill Properties Group and the retail leasing will be headed up by The McGarey Group. The groundbreaking is slated for fall 2006 with completion expected fall 2008.
Ellis Preserve Town Square
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Ellis Preserve in Newtown Square, Pennsylvania, is a $400 million master planned community situated on 315 acres.
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Located just off Route 3 and Route 252 in Newtown Square, Pennsylvania, Ellis Preserve is a master planned community situated on 315 acres. The proposed $400 million project includes a mixture of ground-up speculative and build-to-suit office, retail, hotel and multi-family developments as well as the renovation and redevelopment of existing buildings into office/R&D and amenity service uses.
“Ellis Preserve is the first mixed-use development of this magnitude in the area, and due to zoning regulations and barriers to entry, we expect Ellis Preserve to stand alone as a unique project combining retail, entertainment, cultural venues, residential, office and hotel components,” says Stephen M. Spaeder, president of BPG Development Company, L.P., the developer of the community. The development consists of several different parcels. SAP will retain 105 acres for its U.S. Headquarters, and 210 acres will be developed for retail space, of which 400,000 square feet will be a lifestyle center. Approximately 1.5 million square feet is designated as office space, and there will also be two hotels, plus 350 to 400 lofts and townhomes.
“One of the unique aspects of the project is the history of the site, which is evidenced by the architecturally significant stone cottages and conference center as well as the office buildings that were constructed in the 1980s. Additionally, the site’s topography and landscape was taken into consideration,” says John Braithwaite, Jr., vice president of BPG Properties, Ltd. All of these elements have been integrated into the master plan. “The architectural design of the future buildings will be such as to compliment and enhance the features of the property’s existing buildings while the master plan preserves the site’s specimen trees,” says Braithwaite. Additionally, the development site approximates 220 acres, which represents the largest assemblage of land within a prime infill location anywhere in the Philadelphia region.”
“Ellis Preserve is located such that it is easily accessible to and from the suburban and commercial centers along the Main Line, Delaware County and the areas surrounding West Chester, providing an abundant daytime and nighttime population to support both the retail and office components of the development with a 24/7 environment,” says Spaeder. This is evidenced by recent demographic information for the site. For example, within a 5-mile radius, the daytime population exceeds 73,000 while the residential population is over 135,000 in the same area.
Ellis Preserve represents an alternative to the King of Prussia Mall, which currently reigns as the area’s destination for the discerning shopper. A focal point of Ellis Preserve will be its Town Square, which will host a series of entertainment and cultural events. In addition, there will be valet parking as well multiple structured parking areas, including a 1,000-stall underground parking facility with vertical transportation for both cars and shopping carts. Other key amenities will include a conference center, a professionally operated and managed fitness center and on-site property management. Future planned amenities will include outdoor plazas, an amphitheater, pedestrian walkways, hotels and numerous restaurants and dining facilities.
Currently, SAP America (275,600 Square feet) and Lyondell Chemical (225,000 square feet) occupy the majority of the existing office and R&D space. In June 2006, BPG Development Group broke ground on a build-to-suit for Main Line Health’s Bryn Mawr Hospital Health Center, a 130,000-square-foot medical office and outpatient care facility, which is set to open summer 2007. Discussions regarding retail tenants for the development are on-going with many national high-end retailers such as a gourmet grocer, a bookstore and nationally renowned fashion stores and restaurants. The proposed hotel will be operated by Hyatt.
The owner is Affiliates of BPG Properties, Ltd.; the leasing agent for the office portion is Grubb & Ellis; the retail portion will be managed by Fameco Real Estate, L.P. and Strategic Retail Advisors; the architect for the office component is Ballinger and Francis Cauffman Folley Hoffman; and the architect for the retail component is Design Development Group and SPG3.
The redevelopment of the existing buildings and office space began in July 2005 and will continue through 2010. Construction of the medical office building started in June 2006. The development of the retail, hotel and residential units is estimated to begin July 2007 with completion scheduled for 2012.
The Landings at HarborSide
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The Landings at Harborside in Perth Amboy, New Jersey, includes approximately 150,000 square feet of retail space and in excess of 3 million square feet of residential space.
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The Landings at Harborside in Perth Amboy, New Jersey, is a $600 million redevelopment of approximately 49 acres that includes approximately 150,000 square feet of retail space and in excess of 3 million square feet of residential space that is contained in 22 buildings. The 2,200 residential units range from townhomes to mid-rise luxury condominiums with indoor garage space.
“The primarily abandoned industrial area offered the opportunity to redevelop a majestic waterfront location with breathtaking vistas,” says Sam Gerswhin, president of Westminster Communities, the developer of the project.
Architects, The Liebman Melting Partnership of New York, specifically designed the development to capture the visibility and accessibility of the waterfront. The design also blends New Urbanism theories to meet the needs of a suburban and urban-related buyer. “The waterfront location, and the fact that this is one of the largest public/private urban revitalization projects in the country makes the Landings at Harborside incredibly unique,” says Gerswhin. “It will completely resurrect the area and create a developed waterfront that will be used by the buyers as well as by residents of the surrounding community,” he adds.
The project incudes amenities such as a marina, fishing piers, a bulkhead, an esplanade, a swimming pool, tennis courts, gardens, shops, restaurants, underground parking and a community center. The owner of the project is Kushner Companies of Florham Park, New Jersey; the leasing is being overseen by Builder Marketing Services of Long Valley, New Jersey; and the architect is The Liebman Melting Partnership of New York, New York. Construction began in fall 2003 and is slated for completion in 2014.
Stafford Park
Stafford Park in Stafford, New Jersey, is a ground-up, mixed-use development that is located on 361 acres within the Pinelands Regional Growth Area. The design of the project uses the design principles of smart growth and New Urbanism. Joseph DelDuca, a partner and general counsel with the Walter’s Group of New Jersey, the developer of the project, says “the project is designed so that residents have the ability to walk to shops, restaurants and recreation, and they also have easy access to several different transportation opportunities.”
The project will contain 565 homes with approximately 60 percent earmarked for single family homes and approximately 40 percent will be townhomes. The residential component also includes 112 apartment units. The commercial space portion contains 50,000 square feet of office space with municipal facilities, and there is also 650,000 square feet of retail and recreational space. The retail component will feature a town center with two big box anchors, eight mid-sized retail tenants and a dozen or more boutiques and restaurants. The developers are also planning a 66,000-square-foot twin ice skating rink. The development is adjacent to the Garden State Parkway and will be the only project of its size in the area.
Not only is the commercial and residential development a boon to the city of Stafford, but the environmental work The Walters Group is undertaking is serving the community as well. According to DelDuca, several aspects of the project will be LEED certified. The company, which specializes in environmentally constrained projects, will be capping a 50-acre landfill, using sustainable green construction and will not be using any municipal water during construction. “If the town itself had had to recap the landfill it would have cost Stafford taxpayers 15 to 20 percent more for real estate taxes every year for 20 years,” says DelDuca. Instead, the town will see a net gain. In addition, the developers will be working closely with city and Pinelands officials to relocate animal species within the regional growth area.
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