COVER STORY, JULY 2006

STANDING OUT FROM THE CROWD
Developers add new components to retail developments in order to attract a broader range of consumers.
Lara Fuller

While big anchors and name brand retail stores were once all that was needed to attract shoppers to a development, now developers are looking at other ways to bring in customers. In many areas, traditional shopping centers have given way to lifestyle and mixed-use developments. Consumers have responded strongly to the idea of having a place that feels like a part of the community and not just a generic strip center. Developers are now looking at ways to expand upon that by creating more than a shopping center — they are creating destination centers. Places where visitors and residents can shop, eat and also find entertainment and other uses. Some of the newest projects in the Midwest are using unique components to attract consumers and revitalize areas. The addition of uses other than retail not only brings in people, but also helps establish the project as a true part of the community. Heartland Real Estate Business recently took a look at three new projects to see what elements developers are using to make their projects stand out.

Rosemont Walk

Rosemont Walk, a $500 million, 600,000-square-foot mixed-use project in Rosemont, Illinois, is being developed by a team consisting of the Village of Rosemont, Sierra Realty Advisors, Landmark Resorts & Hotels, Mid-America Development Partners, Muvico and The Harp Group.

Rosemont Walk has been designed to accommodate those uses. The 60-acre development, which will get underway this summer, will feature 600,000 square feet of retail, office and entertainment space, and more than 1,100 hotel rooms. “Rosemont Walk will create an entertainment district connected by pedestrian walkways and will encompass the existing Donald E. Stephens Convention and Conference Center, Rosemont Theater, restaurants and hotels,” says Offit. Included at the project are the Muvico Rosemont Walk 22 and the Grizzly Falls Resort. Construction on the Muvico Rosemont Walk will begin this summer. When completed, the 22-screen project will feature ‘bigger than life’ themed architecture, an expanded concession menu, valet parking, on-site children’s playroom and online ticketing.

Towards the end of the year, construction will begin on the Grizzly Falls Resort, which will feature a 100,000-square-foot indoor water park, as well as a 400-room resort with a spa, family entertainment center, family food court, concierge and limousine service.

The $500 million Rosemont Walk project will not only serve as a destination for residents, but for visitors as well. More than 50,000 people visit Rosemont daily, according to Offit. The project is located in an area bound by Bryn Mawr on the north, River Road on the east, Interstate 294 on the west and the village boundary on the south. It is also adjacent to the O’Hare International Airport.

E Street

Gershenson Realty & Investment/KIRCO is developing the 76,500-square-foot E Street mixed-use project in downtown Grand Rapids, Michigan. The multi-story project will feature retail, restaurants and a theater when it opens in 2007.

“The development of this project came about through our sense that the single entertainment component missing in downtown Grand Rapids was a theater,” says Richard Gershenson, principal with Gershenson Realty & Investment/KIRCO, which has offices in Farmington Hills and Troy, Michigan. Gershenson Realty/KIRCO then decided to fill this need by developing a 76,500-square-foot retail and theater project in the city’s entertainment district.

The project, known as E Street, is expected to be complete in 2007. When finished, the project will feature retail, restaurants, a theater and 860 parking spaces, all in a vertical format.

“This is a mixed-use project with retail and a theater, as well as a parking structure in an urban setting,” Gershenson says. E Street will also sit opposite the Van Ardel Arena, which is one of the most successful arenas in the country. The combination of E Street and the arena will bring a new vibrancy to the area.

“Downtown Grand Rapids is on the move,” Gershenson notes. “Millions of dollars have been spent so far as a movement toward a state-of-the-art entertainment district evolves. Residential development is happening quickly and there is an expansion of office and medical facilities, a growing student population and a new art museum currently under development.” Gershenson Realty & Investment/KIRCO hopes that the E Street project will help further the growth of Grand Rapids.

Grand Rapids-based Fishbeck, Thompson, Carr & Huber is the project architect and Rockford Construction of Grand Rapids is the general contractor.

MetraMarket

In Chicago, MetraMarket is being designed to transform two underutilized city blocks between Washington, Lake, Canal and Clinton streets into a transit-oriented retail and market development. MetraMarket will also sit adjacent to the Ogilvie Transportation Center, Chicago’s largest downtown commuter rail station, which is run by Metra, the city’s commuter rail provider. The station handles more than 95,000 daily commuters.

“U.S. Equities was selected from a field of developers to undertake this exciting project,” says Cassandra Francis, senior vice president with the development group of U.S. Equities Realty in Chicago. “U.S. Equities shared Metra’s vision of a multi-vendor specialty food market at this location, which will be the first of its kind in Chicago.”

The 100,000-square-foot project will feature street-level retail, restaurants and service uses focusing on food and food-related specialties. There will also be ground-level parking for up to 100 vehicles.

The public market space will include approximately 30 individual vendors offering unique selections of fresh and gourmet foods, as well as specialty products from France. There will be a range of prepared and fresh foods to cater to the commuters as well as the surrounding office population. “The market will have something for everyone from the accomplished cook to the novice, as well as gourmet and prepared foods for shoppers,” Francis says. “In addition, MetraMarket will house a broad array of restaurants, an assortment of retailers and an open public space for eating and socializing.” The 15,000-square-foot The French Market, operated by Bensidoun USA, a subsidiary of the largest operator of markets in Paris, will serve as one of the project’s anchors.

“In addition, the MetraMarket project will take a structure that is currently a barrier between Chicago’s theater district and the Randolph Street restaurant district and transform it into a vibrant bridge connecting these neighborhoods while providing greatly needed services and vibrancy,” Francis adds.

The $42 million project will break ground this fall, with completion scheduled for fall 2007. Chicago-based OWP/P is the project architect and Chicago-based W.E. O’Neil is the general contractor.

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