News, Notes and Comments on New Projects, Trends and Construction In the Commercial Real Estate Development and Planning Pipeline Around the U.S.
JCPenney Taps Team to Develop $2B Project in Plano, TX
JCPenney envisions a massive $2 billion mixed-use development on the vacant land around its Plano, TX, home office in the 2,665-acre Legacy Business Park.
Legacy West, the new project, will be developed on 240 acres at the southwest corner of the Dallas North Tollway and State Highway 121, considered a choice spot within the massive business park for office and mixed-use. Legacy West will be a natural extension of Legacy Town Center, a mixed-use development presently located only on the east side of Dallas North Tollway.
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The new partnership will be managed by Team Legacy, a venture of the Karahan Companies headed by founder and local development pioneer Fehmi Karahan; Columbus Realty, and KDC. Work at the site is expected to commence within the next 12 months, with JCPenney retaining a significant ownership interest.
The new project, Legacy West, consists of 240 acres at the southwest corner of the Dallas North Tollway and State Highway 121, and is considered a prime office and mixed-use development site in the heart of Legacy Business Park, one of the premier business parks in the country. Legacy West will be a natural extension of Legacy Town Center, a mixed-use development presently located only on the east side of Dallas North Tollway.
JCPenney purchased the land in 1987 shortly before moving its headquarters from New York City to Texas, and completed its Plano home office in 1992. The retailer was one of the first to move to the Legacy corridor, which is now home to multiple Fortune 500 companies.
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$1B Metropolis Los Angeles Project Breaks Ground
By Jeffrey Howe
Chinese investor Greenland Group of Shanghai has started Metropolis Los Angeles, a $1 billion project on a full city block on W. 8th St. in Los Angeles.
Greenland paid $150 million, or roughly $24 million per acre, to buy the site from IDS Real Estate Group and CalSTRS.
The 6.3-acre site, considered one of the most high-profile development sites in downtown L.A., is between the Convention Center/LA Live Entertainment District and the Financial District. The land is entitled for about 1.65 million square feet of multifamily, hotel, office and retail space
Asian investors have been quite active in downtown Los Angeles over the last year. A few blocks away, Korean Air is building the Wilshire Grand hotel and office tower, another $1 billion project that will feature the tallest building west of the Mississippi River.
The first phase of Metropolis will include a 19-story luxury hotel with 350 rooms and a 28-story residential tower with roughly 300 units. The second phase will include two additional residential towers.
Completion of the hotel is expected for early 2016, and the first residential tower is anticipated to open in summer 2016.
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$135M Health Care Campus Announced in South Carolina
Palmetto Primary Care Physicians announced plans to develop a medical campus in the 4,500-acre Nexton master development at I-26 and Highway 17A in Summerville, SC.
Columbus, OH-based Equity Inc. will built out the project over several phases, with a July groundbreaking for two 150,000-square-foot medical office buildings, an ambulatory surgery center, a 24-hour urgent care unit and rehabilitation services. The project is estimated to cost $135 million and will create more than 1,500 jobs.
"This project will set a new national standard for the delivery of affordable healthcare," according to Equity’s CEO, Steve Wathen.
Dubbed the Nexton Health & Wellness Campus, the Palmetto complex will also feature a seniors housing community, initially with 170 residences, and a clinically integrated hotel. The hotel and housing projects will break ground at the end of this year.
Palmetto has the option of expanding as much as 35 acres over the next several years.
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Alberta Development to Development Mixed-Use Center in Tempe
Alberta Development Partners has received financing to acquire and entitle a 1.86-acre mixed-use development site on the northwest corner of University Drive and Ash Avenue in downtown Tempe, AZ's Mill Avenue District.
San Francisco-based PCCP, LLC provided a $5.7 million senior loan to Alberta Development, which has plans to entitle the site for 40,000 square feet of ground-floor retail and 187 high-rise apartments units.
With a shortage of grocery retailers in downtown Tempe, Alberta is seeking a grocery tenant for the retail portion of the space. The nearest grocer is a Safeway two miles away.
Philip Russick, principal with PCCP, said "there is a pent-up demand in the area for the product they are seeking to entitle and we feel this will be an ideal fit for the area."
The parcel is walking distance to Mill Avenue District's 75 restaurants, shops, nightlife spots, and bar and grill establishments. It's also close to Arizona State University and its population of 60,000 students and instructors.
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