COVER STORY, DECEMBER 2006

MIXED-USE EXPLOSION
Entering 2007, mixed-use developments continue to be the commercial venture of choice in the Midwest.
Amy Bigley

With the New Year quickly approaching, development abounds in the Midwest. The interest in mixed-use development continues as projects are popping up in cities across the Heartland, such as Chicago, Milwaukee, St. Louis and Minneapolis. While some are the traditional mix of residential, retail and office, others are sharply tailored to the location and provide products for specific demographics and individuals. Here’s a glimpse of what is to come in 2007.

Park Michigan; Chicago

Leopardo Construction has begun preconstruction on Park Michigan, a $200 million, 80-story mixed-use tower in Chicago; construction is scheduled to begin in late 2007.

The 900,000-square-foot building will measure 855 feet tall, and rank as one of Chicago’s 10 tallest towers and the tallest tower south of Van Buren Street. Hoffman Estates, Illinois-based Leopardo Construction has already begun site preconstruction, with construction set to begin in late 2007 for delivery in 2010. 

The developer is 830 S. Michigan LLC, as represented by Warren Barr with Oak Brook, Illinois-based Renaissant Development Group. Chicago-based Pappageorge/Haymes is the architect. 

“We’re excited to be part of a great project team delivering another successful, world-class development for Chicago,” says Richard Mattioda, president of Leopardo Construction. “Park Michigan is a prominent project that will begin to balance Chicago’s southern skyline, with the Hancock, Sears, Aon and Trump towers to the north.” 

The 80-story tower is set back on Wabash Avenue, behind the 19th century YWCA building on Michigan Avenue. The Michigan Avenue façade will be preserved and restored with its original architectural features, and serve as the main entrance and lobby. 

“The height of the building comes from a small residential floor footprint, so the building will utilize a strong core and a motion damper system to control wind pull,” Mattioda says. “Pappageorge/Haymes designed a very efficient building, so we’re confident about the construction timeline.” 

The condo units will range from one to four-bedrooms and 700 to 3,000 square feet.  Lower levels will be composed of six units each narrowing to two units per floor at the top.

Additional amenities include landscaped decks, green roofs, indoor and outdoor pools, a fitness center, 470-plus condo parking spaces and an illuminated crown to serve as a beacon for the South Loop skyline.

University Square; Madison, Wisconsin

When completed in fall 2008, University Square will consist of 1.1 million square feet of retail, residential and university offices located in the heart of the University of Wisconsin-Madison campus in Madison, Wisconsin.

The 250,000-square-foot university tower will include the student activities center, the university health services, the bursar’s office, student services, the financial aid office and the registrar’s office. The residential component, marketed to undergraduates, graduate students, professors and employees, will consist of 450,000 square feet and feature one, two, three and four-bedroom units, and a rooftop garden.

The two-level retail component will feature local and national specialty shops, restaurants, and small and mid-size big box retail. Developers are looking to attract a wide variety of retailers to the project, which will serve the university population and residents living in Madison’s east and west Isthmus area, as well as residents to the south.

The development, which abuts the East Campus Mall, a pedestrian walkway connecting the university’s south campus to Memorial Union on Lake Mendota, has been designed with streetscape components to create a pedestrian-friendly environment with accessible retail and outdoor gathering places.

The structure of the project consists of land leases on property owned by EMI and UW-Madison and the sale of air rights to five condominium units above.

Findorff is serving as the general contractor for the project, while Potter Lawson Architects and Brownhouse Design provided architectural services. The joint venture has retained John Bergh-Siegel Gallagher to market the property. Construction on the project began in June and completion is slated for fall 2008.

Hunt Associates and HPO Nicollet are currently developing The Nicollet, a 1.1 million-square-foot luxury condominium tower located in downtown Minneapolis.

The Nicollet; Minneapolis

Minneapolis-based Hunt Associates and HPO Nicollet are currently developing a 1.1 million-square-foot, high-end luxury condominium tower in the heart of downtown Minneapolis. With the continued growth of the city’s urban population, The Nicollet, designed by Barbour/LaDouceur Design Group of Minneapolis, is posed to become the newest prominent condominium attraction for high-income empty nesters and young professionals.

The 356-unit development, which is situated on a 30,000-square-foot land parcel at 1001 Nicollet Mall, will rise 56 stories upon completion, making it the tallest residential tower in Minnesota.

The units will feature floor-to-ceiling glass, hardwood floors, custom kitchen and access to high-end amenities. The 36 differing floor plans range in size from 800 to 6,000 square feet, and there are currently 100 units under purchase agreements and reservations. Completion for The Nicollet is slated for late 2007 or early 2008.

600,000-Square-Foot Mixed-Use Project; Milwaukee

Dallas-based Gatehouse Capital Corporation, along with Milwaukee-based Ruvin Development, is currently developing the first hospitality-centered, urban mixed-use project in Milwaukee. The $150 million, 20-story hotel-anchored project, which is currently unnamed, will encompass an entire city block between 3rd and 4th streets and McKinley and Juneau avenues.

Even though Milwaukee may be seen as a feeder market to Chicago by a small number of people, it is a legitimate market in its own right and a great market for urban mixed-use projects, notes Marty Collins, president/CEO of Gatehouse Capital Corporation. “Many people live downtown, compared to the city’s overall size, and it has a quickly recovering economy with a modern tradition and a lot of redemptive reuse.”

The 600,000-square-foot project includes a 175-room, high-end boutique hotel, 100,000 square feet of office space, 50 condominiums, a high-end restaurant and a national bar/lounge, as well as a variety of retail including approximately 20,000 square feet of neighborhood-oriented retail and a 450-vehicle parking garage.

“The project serves a niche market that is unfilled in Milwaukee,” Collins says. “[Gatehouse] has a history of going into areas that are essentially brownfield and leading the revitalization of those neighborhoods.”

The project will offer a variety of products and brands to serve the needs of its customers. Collins explains that Gatehouse focuses on psychographics instead of targeting a specific class or demographic. “Our customers are urban, gay/straight, men/women, young/old and tend to be affluent, early movers and modern more than traditional,” Collins notes.

Gilbane Building Company is set to begin construction on the project in late 2007, with delivery slated for fourth-quarter 2009. Dallas-based HKS, Inc. is providing the architectural services for the project, while Milwaukee-based Johnsen Schmaling Architects is designing the interior of the condominiums. The developers have retained CB Richard Ellis to market the project.

Park Pacific; St. Louis

Park Pacific is being developed in downtown St. Louis by The Lawrence Group Properties, on behalf of the owner, Parkside Tower.

The two-component project, which includes the historic renovation of the Parkside Building and the new construction of Cityside, will offer 230 residential units, 85,000 square feet of commercial office space, and 36,000 square feet of ground-level retail and restaurant space, as well as an eight-story, approximately 730-vehicle parking garage.

The Parkside Building, which was completed April 1928, is the former headquarters of the Missouri Pacific Railroad Company and its successor the Union Pacific Railroad Company. “The building was maintained wonderfully. Many times, a historic renovation is done on old, rundown buildings, but in this case the building was maintained impeccably and in continuous use throughout its life until we received it for the renovation project,” explains Joseph Cyr, assistant project manager of The Lawrence Group. The original 22-story building totaled more than 400,000 square feet excluding a 60,000-square-foot annex, which was later added to the property.

When completed, Parkside will offer a mix of retail and restaurant space on the first floor and annex, and office space on the second through fourth floors. The remaining floors will be converted into residential spaces, offering 30 apartments and 140 condominiums.

The second component, Cityside, which consists of 14-stories and 75,000 square feet, will sit on top of the 8-story parking garage, rising an additional six stories above the parking garage. The new construction building will feature 42 residential units, with approximately seven units per floor, curtain glass windows and floor-to-ceiling glass, as well as 13,700 square feet of retail and restaurant space on the ground level. The units are all finished with granite countertops, slate tile floors and tub surroundings in the bathrooms, stainless steel appliances, hardwood floors and premium carpeting in the bedrooms.

The luxury development is tailored to young professionals and empty nesters that are looking for a high-amenity and high-finish community in the central business area. “Our target market are single/married professionals with no or older children and empty nesters,” Cyr notes. “We’re also targeting second homebuyers. Many people that have lived their lives and raised their children in St. Louis, now spend most of their time in Florida, Arizona or California, but still want to maintain St. Louis as their primary residence.”

The development will feature a spa, a fitness center and dry-cleaning services, as well as a gourmet restaurant, which will provide hotel-like services to the residents such as room service and catering for events or parties. The project will also feature an infinity pool located 100 feet above the city that will connect the buildings.

Park Pacific is strongly focused on delivering convenience to its residents through its location and the variety of amenities it offers, such as valet parking and concierge services. “It’s all about convenience — individuals that buy these buildings buy convenience,” Cyr says.

The Lawrence Group Properties is developing Park Pacific on behalf the owner, Parkside Tower LLC. The Lawrence Group Project is providing construction and project delivery service, while The Lawrence Group Architects is providing architectural services. Residential delivery for Parkside is slated for fall 2008 and Cityside delivery is scheduled for winter 2009.

“Park Pacific is the next project in our quest to revitalize downtown and make it a 24/7 environment,” Cyr explains. “There was a void and we’re essentially filling it.”

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