COVER STORY, SEPTEMBER 2008

ACCEPTED
Universities and developers see the benefit of mixed-use development in big college towns.
Ashley Ball

While college towns have long been branded with the stigma of being populated by penny-pinching students, three companies are looking beyond the co-ed demographic and investing significant amounts of time and money on large-scale, mixed-use developments in Midwest university communities. Developers in South Bend, Indiana; Ann Arbor, Michigan; and Madison, Wisconsin, are embracing the benefits of the diverse demographics that make up some of America’s most well-known college towns.

Eddy Street Commons at Notre Dame

• University of Notre Dame

• South Bend, Indiana

• Kite Realty Group

Eddy Street Commons, South Bend, Indiana

On a site adjacent to the University of Notre Dame in South Bend, Indianapolis-based Kite Realty Group is acting as developer and master planner for the $200 million Eddy Street Commons mixed-use project. The company has purchased or leased approximately 25 acres of land assembled by the University of Notre Dame for the development.

Having broken ground in June, the commercial component of the multi-phased development is expected to be complete in the fall of 2009. The residential components will follow based on market demands, according to project manager, Ashley Ottesen.

“The project will benefit not only from the student population at Notre Dame and surrounding universities, but also from the nearby neighborhoods and community. In addition, visitors who come in for the various sporting events and entertainment in the area will be able to enjoy what Eddy Street has to offer,” Ottesen explains. “The development will act as a bridge between the campus and community.”

Because Eddy Street Commons is striving to appeal to people other than Notre Dame students, the development will offer a wide range of residential and retail spaces for a diverse population. Project highlights include 90,000 square feet of retail space; 266 apartments; 49 condominiums; 20 courtyard townhomes; 60 flats; 62 homes; a 255-room full-service hotel; a 139-room limited-service hotel; and 75,000 square feet of office product.

“The support of the community, city and University have been key to getting this development underway,” Ottesen says. “With the city’s support and incentives, the project has come together, and the timing is perfect for moving dirt and beginning construction.”

Lower Town

• University of Michigan

• Ann Arbor, Michigan

• Strathmore Development Co.

Lower Town, Ann Arbor, Michigan

In the fourth quarter of this year, Strathmore Development Company will commence vertical construction of Lower Town, an approximately $172 million mixed-use project located adjacent to the University of Michigan Medical Campus Wall Street expansion in Ann Arbor. The 773,966-square-foot brownfield redevelopment, which is within the Lower Town District, will include medical and office components, as well as retail and multifamily spaces.

“This project presents a unique opportunity to construct something truly extraordinary,” explains Scott Chappelle, president of Strathmore Development Company. “We have been working on the project since 1998, and believe that there is demand now and there will be even more once it is constructed.”

Featuring seven multi-story buildings, Lower Town will include 87,000 square feet of bank, restaurant and retail space; 226,000 square feet of upscale residential condominiums; 203,000 square feet of office space, which will be anchored by a coalition of more than 200 Michigan medical professionals leasing 170,000 square feet of space; and a 258,000-square-foot parking structure, which can hold approximately 640 vehicles.

Not only will the new lifestyle-designed development benefit the city economically, but the redevelopment project will also revitalize a contaminated and underutilized part of Ann Arbor. Because of Lower Town’s numerous advantages, the project has received one of Michigan’s largest economic incentive packages to-date, totaling more than $75 million, according to Strathmore’s Web site. The development is expected to be complete within 28 months.

“As a brownfield remediation attempting LEED Certification, this is a sustainable development that the entire community can be proud of,” Chappelle says.

University Square

• University of Wisconsin

• Madison, Wisconsin

• Executive Management Inc.

University Square, Madison, Wisconsin

Madison, Wisconsin-based Executive Management Inc. (EMI) is converting University Square — formerly a single-story, 60,000-square-foot retail center — into a sprawling 1.1 million-square-foot, mixed-use masterpiece. After spending 6 years obtaining countless approvals and overcoming numerous design issues, elements of the multi-phased project were opened to the public in mid-August.

The 12-story development includes 130,000 square feet of retail on the first two floors above grade; a 250,000-square-foot University of Wisconsin Student Services Center tower; 670 student housing units; 180 residential parking spaces; and 267 below- grade public parking stalls for retail use.

“The uses contained within the project provide tremendous synergy between the owners of the project and the customers of the retail, housing and university,” EMI President Susan Springman says. “Not only is the development located at the eastern entrance to the University’s Madison campus, but it is also centrally located in Madison’s downtown.”

Because of University Square’s central location, the project’s retail component will be able to serve the needs of both students and locals. The wide range of housing available within the tower will also provide for a diverse group of Madison residents. On the first two floors, apartments similar to a dormitory will be available to the student population. Additionally, the middle floors will cater to one income market, and the upper floors will focus on the higher-end market, according to Springman.

A unique feature of the retail phase — which can most likely be attributed to students’ eating habits — is a 20,000-square-foot food court. Fast food restaurants that have agreed to occupy the eight-vendor area include Sbarro, Nori Japan, Stir Fry 88, Quizno’s and Bubble Island.

Another student-friendly aspect of the project is the University Tower, which consolidates many of the University’s programs currently spread throughout the campus. While the University Health Service will occupy three floors within the tower, upper floors will be dedicated to student services, which include the registrar, bursar and financial aid offices. The first two floors, which will be funded through student fees, will house the new student activities center.

The variety of uses attributed to this single development is truly unique for the Madison area, according to Springman.

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