CoStar News Spotlights Trends, New Projects and Construction Entering (Or Leaving) the Commercial Real Estate Development Pipeline
In this week's In The Pipeline, developers will get another shot at
winning the right to develop a casino at the Aqueduct Race Track in Queens, NY. CRB Realty Associates
has filed a report with the state indicating its interest in developing Parkway South One, a massive mixed-use project southwest of Atlanta. Skanska USA has landed a $49 million contract
to build the new headquarters office for Gainesville, FL's public utilities unit; Starwood
finishes vertical construction on three 27-story towers for its St. Regis Bal Harbour Resort; Garrison Developer Group has started work on The Preserve at Alafia, a waterfront luxury apartments property in Tampa Bay. Plus,
more project updates and news.
CoStar Group's
In The Pipeline is a column on significant land sales, transactions and trends affecting office, industrial, flex, multifamily, mixed-use, hotel and public works developers. Send us news leads about your new project --
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Read previous columns and articles.
Competition Resumes To Build Aqueduct Track Racino in Queens
Other bidders appear to be back in the race to build a casino at the Aqueduct Race Track in Queens, NY, after the office of Gov. David Paterson canceled a controversial deal with Aqueduct Entertainment Group (AEG) to build the project.
The State of New York's Lottery Division decided that it could not issue a gaming license to AEG, the winning bidder, and that the state should choose a new franchisee for gaming machines "pursuant to an expedited, transparent, apolitical and publicly accountable procurement process," Paterson's office said in a statement last week. The selection of AEG and its $300 million bid to build the "racino" sparked a state and federal investigation into whether the governor's office after critics derided it as a favor to a political supporter.
The decision would appear to give fresh hope to other bidders, which included SL Green Realty Corp (NYSE:
SLG) with Seminole Hard Rock Casinos; Penn National Gaming MGM Mirage with Peebles Development, Delaware North, Harrah's and Wynn Resorts.
In a statement, SL Green CEO Marc Holliday said the REIT and its partner Hard Rock "is still interested and ready to go forward" and that the state can now quickly make a decision based on the bidders' merits and ability to deliver the facility quickly.
"We have already fulfilled all of Lottery’s licensing requirements and we remain able to deliver on our promises - both on expedited timing and on our long-term vision for this exciting project."
CRB Realty Files Report Preparing for Massive Development in Union City, GA
Atlanta-based developer CRB Realty Associates has filed a report with the state of Georgia indicating its interest in developing Parkway South One, a 900-acre mixed-use project in Union City, GA, southwest of Atlanta.
A year ago, CRB Realty announced plans for a $2 billion master development of 2,500 acres along South Fulton Parkway west of the Atlanta International Airport for homes, offices, stores and warehouses.
The speculative Parkway South One project would be built on the north side of South Fulton Parkway and on the west side of Stonewall Tell Road on land owned by Ornstein-Schuler Capital Partners, LLC. The prokject would be comprised of 2.2 million square feet of office, 2.5 million square feet of bulk distribution space, 1 million square feet of "business" distribution, 300,000 square feet of flex space, 260,000 square feet of retail, 180 single-family residential units, 1,200 multifamily units, 150,000 square feet of towncenter space and 50,000 square feet of recreational use.
The project also includes 125 acres of flood plain, with additional biking and walking paths and open green space, according to the Development of Regional Impact (DRI) report filed in late February with the Georgia Department of Community Affairs.
CRB Realty Associates has been involved in the development of more than 20 million square feet of office and industrial space. Among CRB's past projects is the 12 million-square -foot Atlanta Station master development, the 5.5 million-square foot John's Creek project, Atlanta Center, Technology Park Altanta and Lenox Park.
Skanska to Build New Office for Gainesville, FL Utility
Skanska USA has landed a $49 million contract to build the new headquarters office for Gainesville’s regional utilities unit.
The Gainesville Regional Utilities (GRU) Eastside Operations Center will include nine buildings with a total of about 270,000 square feet of building area on a 119-acre campus-type site.
The facility will comprise the head office for Gainesville’s various utilities units for energy, water and wastewater as well as the telephone and data networks. In addition to offices and a hurricane-resistant data center, the area will also house equipment service areas, warehousing, a fueling station and training facilities.
The buildings will be designed and constructed with the aim of achieving the LEED (Leadership in Energy and Environmental Design) Silver level certification. Work will begin in April and is scheduled for completion in October 2011.
Starwood Tops Off St. Regis Bal Harbour Development in Miami
Starwood Hotels & Resorts Worldwide, Inc. (NYSE:
HOT) has completed vertical construction for all three of the 27-story towers of its St. Regis Bal Harbour Resort, one of the largest residential-resort projects under development in the Southeast U.S.
The St. Regis Bal Harbour Resort and The Residences at The St. Regis Bal Harbour Resort, under construction at the site of the former Sheraton Bal Harbour, are scheduled for delivery next year. Plans for the oceanfront luxury property include 205 guest rooms, 270 private residences, 37 hotel condominium suites, a 12,000-square-foot spa, a restaurant and wine bar, meeting and event space.
Private St. Regis residences range from one to four bedrooms comprised of 1,777 to 6,868 square feet, at prices from $1,9 million.
St. Regis has branded hotels in Aspen, Atlanta, Bali, Beijing, Bora Bora, Houston, London, Dana Point, Mexico City, New York, Rome, San Francisco, Shanghai, Singapore, Washington, D.C. and other locales.
Work Under Way On 351-Unit Apartment Project in Tampa
Garrison Developer Group of Florida has broken ground on The Preserve at Alafia, a 351-unit waterfront luxury apartments property in Tampa Bay, FL.
The five-story apartments are the first of three phases of The Preserve, a $100 million mixed-use project on the Alafia River in Hillsborough County about 10 minutes from downtown Tampa.
The second phase will include about 60,000 square feet of retail and the third phase will be a Holiday Inn hotel by American Hotel Development Partners of Florida.
The development is expected to pump more than $75 million and 122 jobs into the local economy over the next three years, according to a study. Garrison hopes to complete the entire project by summer 2011.
Montage Tops Out Utah Skiing Resort
Montage Hotels & Resorts has topped out construction of its Montage Deer Valley resort in Park City, UT, set to open next winter.
The resort will feature 174 guestrooms and 81 private residences in the Empire Pass area skiing access to Deer Valley Resort. The project's developer is The Athens Group, with construction partner including Layton Construction, HKS Hill Glazier Design Studio and Wilson Associates.
Investors Picking Up Unfinished Condo Projects in Calif., FL
LeaseFlorida LLC in Miami Lakes, FL, foreclosed on two failed residential condominium projects. In the first deal, Cypress Bay condo project in the Sunset Harbor area of Miami Beach. Cypress Bay was a planned 20-unit with ground floor retail at 1225 - 1237 20th St.
Cypress Bay Development LLC, incorporated by Isaac Kodsi, began construction but was only able to complete 20% of the project before going into foreclosure. LeaseFlorida acquired the $4 million loan from Compass Bank and then took title to the property.
In a second deal this month, LeaseFlorida foreclosed on the failed 63 NoBe condominium project at 6305 Indian Creek Drive in Miami Beach. This condo project failed while being 60% complete. Fifth Third bank initiated the foreclosure action and LeaseFlorida acquired the note and mortgage and foreclosed on the project and took title. It is also now completing the project.
Also, Essex Property Trust Inc. entered into a venture to acquire Essex Skyline at MacArthur Place, a 349-unit high-rise condominium project in Santa Ana, CA, for $128 million. The community consists of two adjacent 25-story towers with floor-to-ceiling windows and sizeable floor plans. (By Mark Heschmeyer)
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Priderock/Urdang JV Picks Up Eden Development
A joint venture of Priderock Capital Partners and Urdang Capital Management acquired the Eden condominium development in Boca Raton, FL, from Ceebraid-Signal Corp. for $26.4 million, or about $106,500 per unit.
The four-story, 248-unit multifamily property at 300 W. Royal Palm Road is only about 25% complete. The project came to a standstill amid the collapse of the residential condominium market. Prior to the sale, 25 of the 27 remaining Eden residents agreed to sell back their condominiums to Ceebraid at the original sale price.
Priderock and Urdang plan on investing about $15 million into the site, converting it into a luxury apartment complex with rental units averaging about 1,064 square feet. Construction has begun and the joint venture expects to complete the complex by year's end.
Hampton Beebe with Apartment Realty Advisors represented Ceebraid in the sale. (CoStar Research, COMPS #1881969)
FTZ 33 Expands, Adds Additional Sites In PA for Development
The Regional Industrial Development Corp. of southwestern Pennsylvania has received approval for the expansion of Foreign Trade Zone 33.
The existing sites that comprise FTZ 33 cover 5,000 acres, mostly in Allegheny, Westmoreland and Lawrence counties. Adding these 12 additional sites brings the total to more than 6,500 acres.
The new sites run from the Southwestern Pennsylvania region into Beaver County and the City of Pittsburgh. Most of the sites are located along strategic riverfront properties, which will create additional jobs, businesses and economic growth to the region.
The program's incentive for importers and exporters is the deferral fees, reduction and/or elimination of the import taxes/duties, as well as the facilitation of international trade through supply chains
The RIDC is a private, nonprofit economic development corporation and has more than 50 years of real estate development experience. (By Antwan Davis)
More Land Sales and Project Updates
Calvary Chapel of Laguna Beach, CA sold 2.28 acres of industrial land at 47 Tesla in Irvine, CA, to a private investor for $2.2 million, or about $965,000 per acre. The buyer plans to construct an industrial or storage building on the land located in Irvine Spectrum. Gordon Henry of Robertson represented the seller and Kevin Quick of Lee & Associates represented the buyer. (By Alexa Kruthers, CoStar COMPS# 1872749)
Conner Group acquired 84 acres at the corner of South Third Street and Horn Lake Road in Memphis from Genesis Subdivision LLC for $2.7 million, or about $32,100 per acre. The parcel, which was previously developed, was purchased for land value. A commercial/residential development is planned for the property. It is located in the Airport submarket. Tanner George of Carol K. George Realtors LLC represented Genesis Subdivision. The buyer was not represented by a broker in the transaction. (By Teresa Blackmon, CoStar COMPS # 1872589)
Elco Chevrolet Inc. purchased the parcel at 14750-14752 Manchester Road in Ballwin, MO, for $2.03 million, or about $462,300 per acre, from JVH Commercial Properties LLC. Elco Chevrolet plans to use the 4.4-acre parcel for a car lot. Dennis DeSantis and Bryan Reichley of Gateway Commercial represented the seller. Richard Dames of CresaPartners represented the buyer. (By Chris Stoner, CoStar COMPS #1845447)
Praxis Housing Initiatives Inc. bought the parcel at 4339 White Plains Road in Bronx, NY, from a private party for $1.26 million. The land totals about half an acre. Praxis plans to invest over $20 million to build a 40,000-square-foot supportive housing building on the property. Rick Stassa of Friedland Realty represented the buyer and the seller. (By Timothy Weber, CoStar COMPS # 1882373)
Sitton Properties LLC sold a parcel of land in Tulsa, OK, to The Expert Cos. for $1.2 million, or about $706,400 per acre. The 1.7-acre parcel sits on Riverside Parkway, near a Quiktrip and a Bank of Oklahoma branch. It is zoned CS. The buyer plans to develop a retail property on the parcel. Don Roberts of Commercial Ventures represented the seller in the deal. (By Chris Rowland, Costar COMPS #1874663)