News, Notes and Comments on New Projects, Trends and Construction In the Commercial Real Estate Development and Planning Pipeline Around the U.S.
Developers Flesh Out Massive Projects Near New 49ers Stadium
As construction moves forward rapidly on Levi’s Stadium in Santa Clara, CA, two development teams are advancing separate plans for massive projects in the vicinity of the San Francisco 49ers' new stadium.
A joint venture of Lowe Enterprises and Montana Property Group, headed by former 49ers quarterback Joe Montana, unveiled plans for Centennial Gateway, a $400 million hotel, office and entertainment transit-oriented development on three parcels totaling 9.5 acres owned by the city of Santa Clara.
The city has entered into an exclusive negotiation agreement with Montana Property Group, which formed the venture with Lowe to develop the 860,000-square-foot mixed-use project at Tasman Drive and Centennial Boulevard.
Joe Montana, who has been a commercial property investor and owner since his days as a player, said in a statement that the project near the new 49ers stadium "will create a thriving entertainment district that will continue the dramatic transformation under way in Santa Clara."
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Also on Friday, an affiliate of giant private developer Related Companies fleshed out plans for a "city center" project to include about 1.5 million square feet of retail, 2.4 million square feet of commercial space, about 530 residential units and a hotel.
Related California will continue to work with the city and the Montana-Lowe Enterprises entity to integrate the development of both properties, located immediately north of Levi’s Stadium.
In April, the city signed an exclusive negotiating agreement with Related California, which now plans to bring to bring the plan before the Santa Clara City Council, acting as the Sports and Open Space Authority.
"Since the destruction of our historic downtown in the 1960s, our residents have longed for a city center," said Santa Clara Mayor Jamie Matthews, adding that the project will generate jobs and revenue on property "that's a major cost annually to our city budget."
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Lowe, Alectra to Develop Condo High Rise in Seattle
A joint venture of Lowe Enterprises and Sweden's largest mutual pension company will develop a 24-story condominium tower in the First Hill area of Seattle.
The 169-unit project, 1321 Seneca, will be the first high-rise residential building developed in the First Hill neighborhood since 1982 and among the first in the downtown Seattle area since 2008.
The venture of Lowe Enterprises Investors and Alectra, which manages $88.2 billion in pensions on behalf of 2 million private customers and 33,000 corporate clients, is currently finalizing its plan for the mix of units and amenities. Lowe Enterprises will serve as developer of the fully entitled project, with construction expected to begin in mid-2014.
The First Hill streetcar line slated for completion in mid-2014 is two blocks from the property, which is also near the Pike/Pine Triangle and its mix of restaurants, shops, galleries and clubs.
"This venture marks the beginning of a new investment relationship between [Lowe] and Alecta, one of the leading European pension funds," said Brad Howe, co-CEO of Lowe Enterprises Investors.
TMT Development Secures Financing for 30-Story Downtown Tower
By Justin Tochtermann
In another sign that commercial real estate continues to steadily recover from the recession, TMT Development will resume construction on Park Avenue West in downtown Portland after re-signing its lead tenant and securing financing for the 30-story, mixed-use high rise.
HFF arranged the senior loan on behalf of the Portland-based developer for the long-planned 546,000-square-foot downtown tower. The senior loan was provided by PCCP, LLC, real estate finance and investment management firm focused on commercial real estate debt and equity investments with more than $6 billion in assets under management on behalf of institutional investors.
With financing in hand, TMT plans to re-start the project that has been on hold since 2009. "PCCP saw this as an attractive senior loan opportunity to help re-start the development of a high-profile mixed-use tower located in the heart of Portland," said Erik Flynn, senior vice president with PCCP. "TMT Development’s local expertise and proven track record as a best-in-class developer make them an ideal borrower for PCCP."
Located at 750 SW 9th Avenue between SW Morrison and SW Yamhill streets one block west of Pioneer Square and adjacent to Nordstrom's downtown Portland store, the 30-story tower will stand 460 feet high and consist of six levels of subgrade parking, two levels of ground-floor retail space
, 211 luxury residential units on the next 15 floors, and office space on the upper 13 floors.
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Multifamily Development Site Trades Hands in NJ
A partnership between Highview Homes and Chase Partners has sold Signature Place, a 25.37-acre multi-housing development site in Neptune, NJ.
HFF marketed the Monmouth County property on behalf of the seller. The fully approved property at 3660 Route 66, south of Corporate Drive and west of Jumping Brook Road just off Exit 100 on the Garden State Parkway, sold for an undisclosed amount in a debt-free transaction.
The site near the Jersey Shore Premium Outlets will include 272 luxury apartment units, 8,142 square feet of retail space and associated parking.
Current plans include community amenities such as a 3,792-square-foot clubhouse with fitness center, outdoor swimming pool, tot lots, rain garden, picnic area and two free-standing parking garages.
The HFF investment sales team representing the seller was led by managing director Kevin O’Hearn, along with senior managing director Jose Cruz and real estate analyst Marc Duval.
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