MIDDLE MARKET HIGHLIGHT, APRIL 2009

NEBRASKA MIDDLE MARKET HIGHLIGHTS
Kevin Jeselnik

Omaha

TWO MIXED-USE COMMUNITIES ARE DRAMATICALLY CHANGING OMAHA URBAN CORE

Currently in Omaha, there are two expansive mixed-use communities under development in the city’s urban core. In midtown, Mutual of Omaha is bankrolling a $300 million project adjacent to its headquarters campus, and Magnum Development Corporation and Noddle Companies are developing Aksarben Village at 67th and Center Streets.

Aksarben Village (top) and Midtown Crossing at Turner Park are set to deliver more than 990 residential units, 975,000 square feet of retail and 750,000 square feet of office space to the in-town Omaha, Nebraska, market over the next 2 to 3 years.

Midtown Crossing at Turner Park, the 15-acre mixed-use community development that is changing the shape of midtown Omaha, is progressing towards completion as spring blooms. Scheduled to open in November, the project earlier this year earned Stage 2 LEED certification under the USGBC’s pilot Neighborhood Development Certification program. Mutual of Omaha is funding the endeavor, which is underway adjacent to the company’s headquarters, and ECI Investment Advisors, an experienced developer of large-scale urban communities, is the project developer. ECI has been working on the project for approximately 5 years, and those involved are exciting and gratified to see the project taking shape.

“Our main focus now and going forward is about gearing up for the opening and getting operations in place,” says Keith Bawolek, executive vice president of ECI. Activity and interest is ramping up as the buildings near exterior completion and potential tenants can envision the finished product.

“Retailer interest is rising, and we expect an increase in apartment offerings and condo sales this summer, when we can begin showing finished units,” Bawolek adds. “As we near completion, retailers can see the possibilities in the final product. We plan to announce retailers soon.”

Developer ECI Investment Advisors has revamped and expanded Turner Park, the center piece of the Midtown Crossing at Turner Park in midtown Omaha, Nebraska.

Upon completion, Midtown Crossing at Turner Park will comprise seven buildings offering 297 condominium units, 196 apartments, 225,000 square feet of retail space and parking for more than 3,000 vehicles. The highlight of the development, however, remains Turner Park, an existing park that the developers have expanded and featured through extensive landscaping and design work.

“The expansion of Turner Park is a key component of this project and for midtown Omaha,” Bawolek says. The park is expected to serve the dense surrounding population and the area’s daytime workers, as well as increased traffic from the development’s expected 1,000 inhabitants. “All of the city staff has been tremendous to work with on the park. We plan to offer a lot of programming at the park for the local residents, from farmer’s markets to art shows to concerts.”

For potential residents of Midtown Crossing, the condo and apartment units offer unobstructed views in virtually every direction, and the developers are targeting a mix of service retailers, such as a grocery store, along with destination retail, restaurant and entertainment concepts that are unique to Omaha.

Aksarben Village’s entertainment district, which is being developed by Magnum Development Corp., is now expected to deliver its first phase in summer 2010.

Aksarben Village is also underway, with residential and some office/retail components complete and leasing space. When fully complete, Aksarben Village will feature 750,000 square feet of office space; an entertainment district; 250,000 square feet of retail space; a 5-acre park; 500 residences; a 138-room Courtyard by Marriott; and structured parking.

Two for-rent residential communities — Broadmoor and Pinhook Flats — are open and more units are expected to come available soon. Noddle Companies has finished construction of some buildings featuring office space above ground-floor retail and have received commitments from office tenants eager to locate in Omaha’s inner core.

However, the economy has delayed some aspects of Aksarben Village, as Magnum Development Corporation recently announced that it will slightly delay the construction of the entertainment district at least 6 months, and deliver it in phases instead of as a whole. The revised timetable is tied to the difficulties in the credit market and the longer lead times now necessary to align the proper financing.

The entertainment district will still deliver the same anchors, a 10-screen movie theater, a fitness center, two restaurants. The $17 million first phase will feature a 65,000-square-foot building with the movie theater and space for restaurants and retailers. It should now open late summer 2010.

LUND, JASPER STONE TEAM UP FOR OMAHA OFFICE REDEVELOPMENT

The Lund Company and Jasper Stone Partners are redeveloping the 100,000-square-foot 450 Regency in west Omaha into a Class A, multi-tenant office property.

Two locally based companies have formed a partnership to redevelop the former regional IBM headquarters building in Omaha, Nebraska, into a showcase multi-tenant office facility. The Lund Company and Jasper Stone Partners have teamed up to renovate the 100,000-square-foot building located at 450 Regency, which is located in the office park within west Omaha’s Regency neighborhood. Regency was Mutual of Omaha’s first major real estate development in Omaha, and features the office park, a retail component and a variety of residential components.

The office building at 450 Regency was originally built for IBM, and its existing attributes have provided the developers with a well-formed canvas to which they can add additional amenities.

“The property has attributes that you could not afford to construct today and remain competitive with rental rates,” says John Lund, president and CEO of The Lund Company. “The structured parking and four-story vaulted glass atrium would be cost prohibitive if we were starting from scratch.”

However, with those elements in place, the developers have sought to enhance the offerings to attract tenants. A waterfall has been incorporated into the existing atrium, and the building will now offer a café and a rooftop deck with views of Regency Lake. Additional features include concierge services, covered parking/car wash services and shared conference rooms.

The building has also been renovated to be LEED Existing Building certified, which involves new windows and updated mechanical systems. Omaha-based HDR Inc., the original building designer, is assisting with the current renovations. The redevelopment began last fall and is expected to be ready for occupancy in the second quarter of the year.

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