Market Street's most prominent derelict dirt lot is finally ready to join the Mid-Market revival.

Two years after buying a collection of properties on the south side of Market between Fifth and Sixth streets, developer Cypress Equities is set to start construction on a $150 million, 250,000-square-foot retail development.

Cypress has bought out its partner, the Carlyle Group, and will start construction in September, CEO Chris Maguire said. The development, known as Market Street Place, will be speculative - meaning Cypress will build it without having any tenants signed up.

"We just need to get it out to bid, get mobilized, and get building," Maguire said.

The development - the only major, ground-up retail project on the horizon in San Francisco - will probably end up quite a bit different from the original plans.

Taking the script from the previous property owner, Cypress had chased value-based retailers such as Target, Marshalls, JC Penney and Nordstrom Rack. All four of those stores considered the property, but Target ended up at the Metreon, Marshalls at 760 Market St. and Nordstrom Rack on the ground floor of 901 Market St. at the corner of Fifth.

As Cypress marketed the property, it became clearer that the off-price retailers weren't the project's best bet, so the project now is looking to be more upscale.

"We were not thrilled with the options we had on the tenant site. We started considering whether we should think about alternative types of uses," Maguire said. "We had more interest from fashion-forward, speciality retailers."

Cypress considered switching the site to housing or office space, but the politics could have been risky and time-consuming. Meanwhile, retail demand for the property was strong enough to justify construction.

In addition to fashion, the building has drawn interest from grocery, sporting goods and furniture stores as well as entertainment use. The fourth and fifth floors - the top story will have 18-foot ceiling, balconies and views - could work as a combination of food and entertainment, Maguire said, and a group that builds bowling alleys has looked at the plans, as has a cinema developer.

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Derelict dirt lot to join Mid-Market revival

By Cheryl Allison callison@mainlinemedianews.com

A tentative sketch plan for a new retail and office development on the former Verizon parking lot and some adjoining parcels will be up for review by the Lower Merion Planning Commission June 2, on an agenda that also includes major redevelopment proposals in two other communities in the township.

One is the plan Kimco Realty has been floating in meetings with local civic associations for construction of a parking garage and new retail space at Suburban Square in Ardmore.

The night could also see the commissions final review of a plan for a residential conversion of historic Odd Fellows Hall and the Gladwyne Methodist Church in Gladwyne Village, the subject of many meetings and hearings over the past two years.

The Bryn Mawr garage. Photo Cheryl Allison

In 2006, when township officials and the community were writing the Bryn Mawr Master Plan, the large, open Verizon lot and adjoining service building were the focus of much attention as an interruption in the streetscape and prime opportunity for redevelopment.

For the past few years, current owner Blank Aschkenasy Properties (BAP) of West Conshohocken has had a sign in place, announcing new mixed-use development coming soon.

Now it has come forward with a plan for a total 50,000 square feet of new retail and office space, involving some demolition, some renovation and repurposing, and new construction on lots at 907, 921 and 931 W. Lancaster Ave. and around the corner at 21 N. Merion Ave.

A two-story frame building at 907 W. Lancaster, which most recently housed a temporary Duke & Winston clothing store, is to be demolished, along with two older garages toward the rear of the parking lot. Continued...

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Bryn Mawr redevelopment on Lower Merion planners' agenda

New York, NY (PRWEB) May 29, 2014

Turner Construction Company is pleased to announce that construction is underway on the Hilton Cleveland Downtown. The 28-story hotel will be connected by underground passageways to the Cleveland Convention Center and the Global Center for Health Innovation. Turner, Ozanne Construction and Van Aukin Akins Architects have formed a joint venture to deliver the project using a design-build method.

The project is expected to employ 2,800 workers during construction and the project team has set aggressive residency goals, as well as minority- and women-owned business (MWBE) utilization goals to ensure a diverse, local workforce.

We are excited to begin work with our partners on this iconic tower as it becomes part of the Cleveland skyline, said Martin Burgwinkle, project executive. He continued, Like the Cleveland Convention Center and the Global Center for Health Innovation, the hotel will be another community success story for Cuyahoga County and downtown Cleveland, by again exceeding local inclusion goals and spurring further economic activity in the County and City.

The $272 million, 28-story hotel will have 600 guest rooms and will feature a rooftop bar. The hotel tower is positioned atop a four-story podium that houses ballrooms, meeting space, and retail space. It is scheduled to open in 2016.

About Turner Construction Company Turner is a North America-based, international construction services company. Founded in 1902, Turner first made its mark on the industry pioneering the use of steel-reinforced concrete for general building, which enabled the company to deliver safer, stronger, and more efficient buildings to clients. The company continues to embrace emerging technologies and offers an increasingly diverse set of services. With an annual construction volume of $9 billion, Turner is the largest builder in the United States, ranking first in the major market segments of the building construction field, including healthcare, education, sports, commercial, and green building. The firm is a subsidiary of HOCHTIEF, one of the worlds leading international construction service providers. For more information, please visit http://www.turnerconstruction.com.

About HOCHTIEF HOCHTIEF is one of the most international construction groups worldwide. The company delivers complex infrastructure projects, in some cases on the basis of concession models. The Group operates in the transportation infrastructure, energy infrastructure and social/urban infrastructure segments as well as in the contract mining business. With nearly 81,000 employees and a sales volume of more than EUR 25 billion in FY 2013, HOCHTIEF is represented in all the worlds major markets. With its subsidiary Leighton, the Group is market leader in Australia. In the USA, the biggest construction market in the world, HOCHTIEF is the No. 1 general builder via its subsidiary Turner and, with Group company Flatiron, ranks among the most important players in the field of transportation infrastructure construction. Because of its engagement for sustainability, HOCHTIEF has been listed in the Dow Jones Sustainability Indexes since 2006. Further information is available at http://www.hochtief.com/press.

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Turner Construction Company Selected to Build $272 Million Hilton Cleveland Downtown

This is anHTML versionof an article that ran in the May 2014 issue ofReal Estate Forum. To see the story in its original format,click here.

There isnt a retail real estate sector that is discussed much more nowadays than the supermarket arena. Two of the biggest middle-market operators, Albertsons and Safeway, are combining, and retail observers are waiting to see what store-closure fallout could occur as a result. Meanwhile, specialty grocers focused on quality and organic products, such as Sprouts Farmers Market, the Fresh Market and Trader Joes, are looking for space and drawing consumers. On the other end of the spectrum, lower-priced options, such as Walmarts Neighborhood Markets, Aldi and others, are popular with the cost-conscious shopper and fighting for space. All of this is happening in an environment with very little new retail real estate construction.

In conjunction with this months ICSC RECon show and Real Estate Media Thought Leaders Marcus & Millichaps annual Retail Trends event at the conference, we bring you a roundtable discussion on where the grocery sector is headed, as well as what is taking place overall in retail real estate.

PARTICIPANTS

Michael CohenHead of Mid-Atlantic and Southeast OriginationCitigroup CMBS and CREF

Fernando De LeonManaging PartnerLeon Capital Group

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Grocery Grab

For nearly 20 business owners finding a place to set up shop in downtown Traverse City means waiting because there is no space available. /upnorthlive.com photo

TRAVERSE CITY -- For nearly 20 business owners finding a place to set up shop in downtown Traverse City means waiting because there is no space available. Downtown leaders say the demand is at a ten year high.

Downtown leaders say it's a good problem to have and empty spaces could soon be a construction site to add more square footage to downtown.

You always need to have those new things, those new businesses, those new places to go to keep it fresh and exciting, said Rob Bacigalupi, Downtown Development Authority Executive Director.

Finding a way into the downtown Traverse City marketplace is proving to be a challenge for nearly 20 businesses.

Anybody that is looking to locate a business downtown or even those who are already downtown but want to expand have a very difficult time finding space.

Aside from the newly opened Franklin restaurant, downtown retail space hasn't been added in several years.

The demand has risen after a short slump during the 2008 recession.

It actually speaks to how attractive and viable downtown is for shoppers already people already want to shop here and therefore the shops want to be here.

Right now the vacancy rate is at 3.2 percent. Downtown leaders say they prefer to be anywhere from four to eight percent.

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Downtown Traverse City short on space for incoming businesses

$5B project woos investors to Amman May 28, 2014 12:30 AM

BEIRUT: Next month, Amman will witness the grand opening of The Boulevard, a $423 million project located at the heart of Abdali, the citys new downtown district.

The Abdali project, itself estimated to be worth over $5 billion, will be inaugurated on June 11 by Jordanian King Abdullah II and is the largest mixed-use development project ever constructed in the heart of the Jordanian capital. It will cover 384,000 square meters of land and comprise a total area of over 1.8 million square meters.

Abdali constitutes a promising investment environment that will attract many regional and international businesses that consider the kingdom as a suitable place for their investments, combined with a contemporary lifestyle, in one prestigious address, George Amireh, CEO of the Abdali Investment and Development PSC, which is developing the project, said during a press tour earlier this month.

Amirehs company is a joint venture between the government-owned real estate developer National Resources and Development Corporation and Horizon International for Development Ltd. Co., a construction conglomerate owned by Lebanese businessman Bahaa Hariri. The joint venture is also in partnership with the United Real Estate Company, which is part of the Kuwait Projects Company.

The Boulevard, a 370-meter-long and 21-meter-wide outdoor pedestrian spine bordered by 12 buildings, consists of retails outlets, luxurious serviced apartments, scenic rooftops and office spaces over a total land area of 26,539 square meters and a built-up area of 226,000 square meters.

The Boulevard is a clear example of the urban development witnessed in Jordan. It is a distinctive destination for business, high-end residences, tourism, commerce and entertainment. ... The Boulevard will strengthen the position of Amman and will put the city on equal footing with other global centers, said Taher al-Jaghbir, CEO of Abdali Boulevard Company.

The overall Abdali project is divided into two phases. Phase I is a planned pedestrian-oriented mixed-use community consisting of residential apartments, office spaces, retail outlets and hotels over a built-up area of 1,000,000 square meters.

It comprises buildings that are an average 30 meters high, in addition to retail space of 22,000 square meters, leasable rooftop areas and terraces of 18,000 square meters, 120 retail outlets, 400 luxurious serviced apartments, 30,000 square meters of offices and 1,700 underground parking spaces.

Phase II will feature a central dynamic park across 30,000 square meters of land, serving as a focal theme for mainly residential development as well as office, hotel and retail developments over 800,000 square meters.

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$5B project woos investors to Amman

Tuesday, May 27, 2014, 11:39am

Northland Investment Corp. of Newton has closed on $98 million in construction financing for Moody & Main On The Common, a mixed-use development in downtown Waltham.

The development will consist ofthree five-story buildings on a 4.5-acre site. Once complete in summer 2016, it will include 269 apartments, 27 of which are affordable, 27,595 square feet of retail space, a 300-car parking garage and 92 surface parking spaces. The first phase of apartments will be ready for occupancy in summer 2015.

"Moody & Main is a true transit-oriented development that will offer residents a 25-minute public transit commute to downtown Boston from their front door, while providing convenient walking access to restaurants, retail and grocery stores," Steven Rosenthal, president and CEO of Northland, said in a statement.

PCCP LLC provided the loan for the project, and Colliers International acted as the mortgage broker. ADD Inc. is the architect, and the general contractor is Erland Construction. CBRE is the exclusive leasing agent for the available retail space.

Moody & Main On The Common is one block from the Waltham MBTA commuter rail station and the Charles River.

Buildings will feature masonry facades with large windows. The urban street edge will have wide sidewalks, street trees and benches and a mini-park. The interior portion of the site will feature landscaped pathways surrounding the surface parking. Sustainable features include Energy Star appliances, low flow fixtures and single stream recycling.

Continued here:
Northland Closes On Construction Financing For Waltham Project

A tucked-away retail outlet west of Highway 29 is about to undergo a significant makeover, adding an almost 5,000-square-foot addition to house up to four retailers or businesses.

The project, known as Solano Plaza, will include a 4,800-square-foot, single-story building facing an existing strip of shops home to a furniture store, a nail salon and a barber, among others.

Owned by longtime Napans Gemy and Betsy DAdamo, the proposed building was designed by local architect James Jeffrey. It will sit atop a former gas station site that has been cleansed of toxics, said owner representative Tina DAdamo.

The project would likely have been started sooner, except for a corner sliver of excess right-of-way area that needed to be conveyed to the DAdamos by the city. The city agreed to relinquish the section of corner that was reserved many years ago for the possibility that an overpass might be created from West to East Pueblo over the highway.

The proposed project will include the new retail space, landscaping, trees, new signage and other improvements. We want it to look uniform and blend in with the existing center, Tina D'Adamo said.

The DAdamos have owned the parcel for almost 40 years, said Tina DAdamo. It was originally home to a gas and service station. For many years the family operated the Shell Pueblo Tire Service at the site.

A commercial strip built many years ago at the back of the corner was remodeled two to three years ago said DAdamo. That section, or Phase I, is almost fully leased and includes several longtime tenants, she noted.

DAdamo said the family was flexible about potential tenants. Because the center is off the beaten path," she thought neighborhood-serving businesses would be a most likely fit. She suggested light retail, perhaps a caf, dentist or doctor office, or even a small market.

I would hope we could get something that caters to the surrounding neighborhoods, said DAdamo.

Construction could begin next spring, she estimated.

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New retail space planned for Solano Avenue

Sellers See Action From Banks, Revived CMBS Lenders, Life Companies and Private Buyers -- But Shopping Center Quality, Performance Remains A Key Factor

Just as in the 'old days,' ICSC reportedly sold out the entire financial and properties services pavilions, with waiting lists for each. During every panel session, executives marveled at the abundance of financing available to landlords, owners and buyers, with many non-traditional capital sources offering a broad array of options on both the debt and equity sides.

As Marcus & Millichap investment market guru Hessam Nadji noted during the firm's popular Retail Trends 2014 presentation duirng the conference, retail sales volume is now 14% greater than even pre-recession peaks in 2007. M&M's recent retail sentiment survey detected rising confidence among investors, said Nadji, who urged buyers not to "overthink" -- to pull the trigger on deals if they make sense.

Malls and strip centers alike are seeing continued improvement in pricing power, as evidenced in rising re-leasing spreads and attractive buyer capitalization rates. REITs are recycling capital while private buyers are showing stronger demand for assets, a theme echoed by REIT CEOs during quarterly meetings in the days leading up to the Las Vegas retail conference.

"There's definitely more buyers today than a year ago, there's more buyers today than three months ago and their appetites are much bigger than they were three months ago or a year ago," noted Macerich CEO Arthur M. Coppola.

But lenders haven't turned open the faucets for just any borrower or project. Non-core properties and ground-up development project are still enduring vigorous underwriting reviews by still conservative financial institutions.

"Demand for loans seems to be strong. If you're not looking to be an aggressive borrower, there's plenty of capital, said CFO Michael Berman of General Growth Properties, which maintained a large presence in the RECon exhibit hall.

Properties priced at over $300 per square foot are a lot easier to finance and can tap the now-booming CMBS market, but properties below that price per pound need banks to step up for financing, Michael Glimcher acknowledged. The good news is that the bank financing is back, given the right institutional buyer who can write an equity check.

The likely buyer pool for retail assets marketed for sale by CBL & Associates Properties is primarily private rather than public companies, and those buyers have teamed up with private equity or international funding sources, said CEO Stephen D. Lebovitz.

Macerich saw a "pretty competitive bidding process" for its Biltmore Fashion Park shopping center in Phoenix led interestingly by the life companies seeking A quality space, who were outbidding CMBS lenders by 10 to 20 basis points, armed with very competitive rates for 10-year money in the low 4%s, CFO Thomas E. O'Hern said.

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Winners and Losers Emerge as Debt, Equity Capital Flowing Back Into Retail Real Estate

This is according to the latest data on the Bangkok retail property market from the Research Department of Colliers International Thailand.

Only 6,500 square metres of new retail projects were completed and opened in the first three months of this year, while more than 40,000 square metres were postponed to the current quarter, said Surachet Kongcheep, associate director of the department.

He said some retail centres could not be completed as expected in the first quarter, especially in the City area of Bangkok.

Meanwhile, the total retail supply in the Suburban Bangkok area was the largest, with around 3.5 million square metres or approximately 53 per cent of the total supply of Bangkok and surrounding areas.

This was due to the huge number of residential projects, which create the real demand for retail centres such as community malls and large-scale shopping malls in the Suburban Bangkok area.

Some 866,530 square metres of future supply is under construction and expected to be completed this year, with 559,140 square metres at shopping malls and 269,400 square metres at community malls.

Most community malls scheduled to be completed in 2014 are located in the Suburban Bangkok area, although some community malls in Bangkok are not successful and cannot maintain their initial popularity, he said.

The occupancy rates in all categories are above 95 per cent, except for supporting retail, which weighed in at 90 per cent.

Surachet explained that most retail centres in Bangkok had achieved a high take-up rate, especially those in the City area.

During the past one to two years, many international brands have been looking to open shops in Thailand, especially at shopping malls in Bangkok. In addition, many local Thai brands also continue to open shops in all areas of the country.

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Q1 retail property demand still strong despite political woes