COVER STORY, FEBRUARY 2006

MIXED-USE SPRAWLS
The best of urban mixed-use is moving to the suburbs.
Kevin Jeselnik

Since mixed-use developments caught on, the creation of such projects has evolved rapidly. From standard mixes of office and retail to the complementary mingling of retail, residential, civic and hospitality sectors, the mixed-use sector has emerged as a refined and distinct asset class. Designed primarily as a solution to a lack of space in urban environments, mixed-use development has steadily moved into the suburbs and is taking on new life. Developers across the country are bringing the best in urban communities — the close-knit tapestry of retail, office and residential space; pedestrian-friendly streetscapes; and green space — into smaller cities, and the public is responding positively. Offering a collection of uses in one environment provides many sprawling suburban markets with a gathering place that did not exist before. Heartland Real Estate Business takes a look at two unique suburban developments that will bring the best of the urban-style communities to new markets.

Park Place
Leawood, Kansas

Park Place is approved for up to 350 condominiums. The first-phase residential component will comprise the eight-story, 53-unit Meridian at Park Place.

The site is located in a high-traffic area of the city, notes Alpert, with an existing 750,000-square-foot lifestyle center directly south, upscale residential to the north and Sprint's world headquarters adjacent to the property on the west edge. Sprint's headquarters spans 4 million square feet and houses approximately 14,000 employees. “One of the things that makes this project so special is the fact that it is truly an infill site, and [the project] really looks to all the uses surrounding it,” Alpert says. “It is interesting that it ended up being a mix of all these existing uses.”

As part of a growing trend to bring the trappings of city living out to the often-sprawling landscape of suburban commercial real estate, Park Place will deliver a diverse and eclectic mix of tenants when it is complete. “Up to now, there has been no sense of place in Leawood. The area is all very suburban in design and orientation,” Alpert explains. “We are providing that sense of place through an urban-style street design.” The project will offer some street-front parking, but the majority of the parking will be located in structures behind the buildings. Park Place will include 20-foot sidewalks, with the inner 10 feet designated for pedestrian traffic and the outer 10 feet allocated to outside dining and landscaping features.

The first phase is set to open in spring 2007, with the second phase of office space and residential units to be developed as the market dictates. Master planner Street-Works LLC of White Plains, New York, and local architect Gould Evans have designed a contemporary set of buildings that blend well with the surrounding architecture while evoking the feel of modern vertical urban mixed-use communities. The developers secured zoning for significant height for Park Place, and it will feature Johnson County's first mid-rise condominiums.

Park Place, Park Place Developers LLC, Leawood, Kansas

Approximately 15 to 20 retailers will populate the collection of two- and three-story retail buildings, with eight to 10 restaurants, from fast-casual concepts to higher-end offerings, set to fill in the space between.

The office component will total approximately 90,000 square feet and will be located on the floors above the retail tenants. Initially, Mann notes, the focus for the office space was on smaller tenants seeking between 2,000 and 8,000 square feet. “We are also getting strong interest from 10,000- to 20,000-square-foot users,” she says. “I think that [potential office tenants] are understanding that this is the only opportunity to have this kind of environment in Johnson County.” Bryan Johnson, Michael Mayer and Rollie Fors of Grubb & Ellis/The Winbury Group are heading up the office leasing efforts.

A portion of the site is approved for 200,000 square feet of Class A office space, which Mann says will be developed at a later time as a build-to-suit or possibly sold to an office developer.

Another draw for local office users is the boutique hotel, which will likely encompass 120 guestrooms and 32 condominiums on eight floors. The for-sale condos will be located on the top four floors. The hotel is expected to capitalize on the strong business population in the area, with approximately 80,000 daytime employees within 3 miles. The residential component will be kick-started by the Meridian at Park Place, the first mid-rise condo tower, which will break ground in the spring. The Meridian will include 53 one-, two- and three-bedroom luxury units priced from the high $400,000s to more than $1 million. Parking will be providing under the tower. Park Place is zoned for up to 350 condos, and further residential development will go forward as demand dictates.

Center of the Northshore
Northbrook, Illinois

The Center of the Northshore will offer unique pedestrian amenities to complement its mix of residential, retail, hospitality and office uses.

The 400,000-square-foot project is located on a wide 14-acre site running north/south along Skokie Boulevard in a very affluent metro Chicago area, where the average household income of residents within a 7-mile radius totals more than $150,000. The project will feature a tight-knit urban design, which offers a mix of high-end retail, restaurant and entertainment tenants, a boutique hotel, office space, 66 for-sale residential condominiums, and a banquet facility for 700 people.

The focus on providing a walkable urban atmosphere lead Chicago-based Legat Architects to design a collection of buildings of varying height, from three-story buildings featuring retail and office space to seven-story buildings that will house retail and residential units as well as the hotel, banquet hall and entertainment venues. “We, by design, created the project almost in the format of a civic plaza, with water features and wide promenades; we basically created a true gateway to Northbrook ” Renko says. “It looks like your ‘Main Street, USA' in the city, but in the suburbs.”

Center of the Northshore, EAG Capital Holdings/Northshore LP, Northbrook, Illinois

The 23,000 square feet of office space will be located on the second and third floors of one of the buildings featuring street-level retail. A number of tenants have already signed letters of intent for some of the space. Renko says that recent interest from medical spa operators may result in the inclusion of a spa concept, but that has yet to be determined.

The hotel, the first to be developed in the area in 17 years, will include between 150 and 180 guestrooms above ground-floor retail. The nightclub and the banquet hall will be adjacent to the hotel. A 54,000-square-foot XSport Health and Fitness Center will also be developed on four floors in the center, open for residents of the Center of the Northshore as well as the Northbrook community and will operate 24 hours a day 365 days a year.

The effort to create complementary elements that will feed off each other and drive activity year-round has extended to the physical landscape. The center will include reflecting pools that in the winter will become ice-skating rinks for the community's use. “We've created some central features that create the atmosphere of a city square, where we have fountains and sitting walls and wide promenades with benches,” Renko says. “You can just come and walk around the center and enjoy being outside.”

The residential component will total 66 condominium units, breaking out to approximately 11 condos on each floor, above retail space. Parking for residents will be located in a parking structure behind the building. Street-front parking as well as valet service, will be available, in addition to the structured parking, offering visitors of the development a wide choice of parking options. The one-, two- and three-bedroom condominiums will vary from 975 to 1,750 square feet, with prices ranging from $398,000 to $850,000.

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