Urban Construction Update - December 2012

Started by Metro Jacksonville, December 17, 2012, 03:01:56 AM

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simms3

#30
December 20, 2012, 02:06:24 PM
Who cares about Sbx?  Get another Bold Bean/independent in the Landing!  Sbx has already indicated they don't feel strongly about DT, so that is a lease Sleiman will have to "buy", and it isn't worth it as it won't attract other credit nationals there.  I assume Sleiman's leasing team is talking to local operators/entrepreneurs/concept investors?  The Landing at present would never attract me to it if I were considered a special store/restaurant in a "hip" neighborhood, but the right architectural touch and appropriate investment would turn my attention (or the appropriate tenant package to facilitate a really cool buildout and a termination clause after 5 years and rent relief if sales don't exceed $x, LoL).  I see no reason why the operators of Bold Bean wouldn't do a location in the Landing now as-is?

There are already a slew of local entrepeneurs who could create a phenominal presence in a new market downtown, but part of the purpose of a repositioned Landing could be to cultivate new entrepreneurs in the city.  Has Sleiman's leasing team considered approaching any of the more successful food trucks for bricks & mortar locations in his center?  I picture stuff like Green Man Gourmet, W90, the former Matthew's Market, Bold Bean, Black Sheep, etc etc all having space under one roof, preferably in a totally redone, totally cool Landing, or a totally redone Prime Osborn.  To my knowledge there is nothing short of the Landlord holding that sort of transformation back (it's already been done in even smaller markets).

My company literally turned part of a 60s era shopping center anchored by Safeway, Kohls, and Ross Dress into a really cool promenade for local/independent shops and restaurants in a blue-collar suburb of Oakland, CA.  If that can be done, something with as much potential as the Landing can be fantastic.

Granted my company is very well-capitalized with offshore and institutional money, and has a stellar national reputation with in-house development and marketing and leasing, but Sleiman has so many examples to look to of cookie cutter developers cultivating their lone namesake deal.  There's an industrial developer in Nashville that built an infill shopping center and put a Whole Foods, Billy Reid, Anthropology, and best in class local restaurants in there, so strip mall kings can have some creativity.

What we did at the CA shopping center in a nutshell was shop around for the best restaurant operators we could find, worked with two to create business plans that would fit the demographics, offered them their dream restaurant buildout, and crafted leases that were simultaneously LL and TT friendly.  First 3 years percent rent with option to convert to fixed in year 4.  If they meet their business plan (we underwrote conservatively), they will convert to a fixed rent that is at least 3x that of their neighbors, and their occupancy costs will still be low/reasonable...and most importantly we benefit immensely.

Their presence has activated an inner courtyard, where we are filling up shop space with other local entrepreneurs...and competing with the community's "Main St" and the local planning/zoning boards has been a challenge we have overcome.  I would guess Toney has different, but potentially fewer challenges and much more upside at the Landing.
Bothering locals and trolling boards since 2005

cline

#31
December 20, 2012, 02:10:44 PM
Sleiman doesn't give a rats ass about leasing out the Landing.  If he did he could easily have the place full.  He chooses to focus on developing his generic suburban strip malls which is his real bread and butter.  The Landing would be best served if he would just go ahead and sell it to someone who has a true vision for it.

simms3

#32
December 20, 2012, 02:29:19 PM Last Edit: December 20, 2012, 02:32:19 PM by simms3
^^And my boss tells me that multitasking brings one closer to God.  Literally, he said that.  It makes no sense for Sleiman to simply float by with the Landing, pulling in enough operating income to simply pay the ground lease.  Only an idiot would take no advantage of the opportunity presented.  I know he tried early on and it didn't work out, but that plan wouldn't have worked out nearly anywhere...it wasn't his fault, the city's, or even totally the market's.  Why not go for a plan that capitalizes on an up and coming trend and is grounded in economic reality?

Local operators don't have parking requirements.  They all have operations in 5 Points, Avondale, San Marco, etc.  They are all going to do much better than Starbucks, Hooters, Sunglass Hut, Great American Cookie, etc etc.  Putting all of the best of the best under one roof in that location would create a huge critical mass of heavenly goodness that would attract tourists and the upper middle/upper class locals, as well as the office workers (could also help to create office leasing momentum downtown, making it a desirable place again and an investment market...which means Sleiman could sell eventually).

Things like the Ferry Building, Chelsea Market, White Provision/Westside Urban Market, Ponce City Market, Warehouse Row, Fanieul Hall, Pike Place Market have literally turned around entire submarkets into some of the most desirable in the country.  Think about it...if you own the cornerstone, or at least the key to the cornerstone (ground lease), you have access to the piggy bank and your asset becomes very vital and attractive to a certain class of investor who will pay up for it or securities backed by it (my company, Equity Office, Boston Properties, CIM, Tishman, AEG, Bentall Kennedy, etc).

My company has an asset in Chattanooga we would love to sell to the retail mall REIT based there (CBL).  We are about to sign with a retailer that shoudn't even be in that market and turned CBL down at their flagship mall.  Maybe Sleiman should do something to catch Regency's eye, these public institutions tend to pay a premium for long-term risk-free cash flow (not that having no credit is risk-free, but I'm seeing more public REITs such as WRI get involved with creative assets in infill/downtown markets).
Bothering locals and trolling boards since 2005

MusicMan

#33
December 20, 2012, 04:07:29 PM
Captain, That place is not rumored to be on the market, it SOLD a month ago for $178,000 cash.

It was not on the market for long. There was no signage to speak of.

It was on the MLS however. You could make an argument that fair notice was given to all interested parties,

but a couple of huge signs wouldn't have hurt, either.

Spence

#34
December 22, 2012, 09:03:40 PM Last Edit: December 22, 2012, 09:15:40 PM by Spence
The Gateway Community Services Center (/a/k/a old Holiday Inn) on Irene St (/the Stockton+I10 exit coming from SanMarco) has added a new building AND removed the ugly 6 foot tall chain link fence previously caging the compound.

Additionally, in LakeShore / Bayview-Lakeside Park across from St.Matthew's church and school, a new medical facility is soon to open.

I hope this ill fitting suburban setback dimensionally speaking is not the model concept coming to the medial facility seeking a Certificate of Appropriateness for Stockton St. just south of the gas stations and aforementioned Gateway Rehab facility..?


Speaking to the recent sale of the nearly 2 acre parcel west of Frederica Pl, King St., and Center Bank, I for one certainly hope to see a "village" more dense than the "town-homes" previously added to the little pocket just north off Lydia St. a few years ago.
This little swath of residential connecting Downing and Lydia holds potentially unique promise for the bustling district if executed correctly, i.e. properly sympathetic facades and small setbacks, something akin to Dancy in Springfield, only much taller.
Possibly a look similar to the south end of McDuff Ave where almost an entire block of rental unitis once had cantilevered balconies.
Porches and balconies and hidden automobiles.
Why is the world full of humans a lot less friendly than we ought to be?

ricker

#35
December 24, 2012, 11:22:04 PM Last Edit: December 25, 2012, 12:14:42 AM by ricker

PeeJayEss

#36
December 28, 2012, 09:33:50 AM
Quote from: Captain Zissou on December 20, 2012, 01:49:41 PM
Quote from: MusicMan on December 20, 2012, 12:52:57 PM
Lake, Yes it is that really beautiful parcel parallel to King a couple blocks over. I believe the new owner is building new and rehabbing in Riverside-Avondale, so I expect exclusively residential in there.

It sounds like Lake is talking about the piece of the FGB property that is rumored to be for sale.  MM, are you talking about that piece or the lot with a culdesac in it with two large buildings already built??

I believe neither. I think he is talking about the piece that goes straight through from Downing to Lydia, because the cul-de-sac property does not hit Downing. It is behind the houses on Frederica, which also puts it behind the two houses on the cul-de-sac (interestingly, the cul-de-sac almost abuts the property line of the Downing St homes, I would think making the street a little shorter to move the cul-de-sac and you could've squeezed one or two more houses back there). From either Downing or Lydia, it just looks like a break in the houses on the street, but the yard goes back to the other street.

If you put a street through there, you'd end up with some pretty small properties. Not sure what kind of multi-family you could get in there, but I feel like that would be a bit out of place (put that on the bank property). If you could get a street permitted back there, you could potentially tie it into the cul-de-sac, remove the cul-de-sac part, and fit more houses in on that property. But, of course, you'd have to own the cul-de-sac property.

I have never typed cul-de-sac so many times.

Captain Zissou

#37
December 28, 2012, 09:52:55 AM
You would have to put the street on one side or the other of the property.  Row houses would work, or a couple 4-8 unit buildings on either side with an open space/parking in the middle.
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