5/26 Tuscana, Quail Springs Ranch, Outlet Shoppes Update
Sorry if its a repost. I hadn't seen this anywhere else.
Oklahoma City projects stall, look for momentum. via okcBIZ
Pamela A. Grady
5/26/2009 12:00:00 AM
In the Oklahoma City metro area and its surrounding communities, many development projects have been planned, talked about or reported as forthcoming. Looking back, some projects took off and did well, while others never came to fruition, or simply fell off of people’s radar.
OKCBiz takes a look at some of these commercial projects to see whether these deals are moving forward or dead in the water. Simply put, “Whatever happened to that?!?”
Tuscana
THE PLAN: Two years ago, local developer Larry Owsley of RCL Mortgage Corp. purchased 233 acres north of Quail Springs Mall for his Tuscana project, a Mediterranean-style, mixed-use development. He purchased the vacant land with plans to build Oklahoma City’s largest mixed-use destination project. Initially, the plan was to be completed within five to seven years.
THE PROBLEM: “We’ve been pushed back a year or two,” Owsley says, blaming delays on economic circumstances and retailers struggling to find new finance options. “Everybody’s just in slow-motion or holding back until their own financing can get worked out. A lot of their major financing from Wall Street, major investment firms or the REITs have gone away.”
THE PROSPECT: Nonetheless, Owsley says he’s not waiting any longer to begin working on the project’s infrastructure at its ceremonial entrance on May Avenue, where an 18-foot-tall, triple-layered, Tuscany-style fountain will be placed. He says roads are being paved on the Stillwater National Bank-financed project.
“Two years ago, our market feasibility study indicated (Tuscana) would be $700 million to $800 million in bricks and mortar,” he says, but admits the cost may be much higher once all is said and done.
Under the project’s planned unit development, the pedestrian-friendly Tuscana will provide more than 800,000 square feet of retail space, with an emphasis on family recreation.
“Around the perimeters, we have 10 acres on 150th that will be upscale boutique retail,” he says. “On the May Avenue frontage, the area is set up for restaurants with water features and more retail. The concept is everything is driven to the center of the development where the hub of activity will be.”
Additionally, more than 600,000 square feet of residential-size offices and larger corporate structure areas will be available. The project also will feature five to six different styles of residential living, including mid-rise, row homes, townhomes, condominiums and lofts.
“The demographics here in Oklahoma City, in terms of education, number of people, and the income in certain areas of Oklahoma City, is very strong,” Owsley says. “And our development center is in the center of the bull’s eye.”
Quail Springs Ranch
THE PLAN: Local commercial real estate broker Bob Sullivan of NAI Sullivan Group planned for Quail Springs Ranch at Western Avenue and Memorial Road to be a 90-acre, 1.5 million-square-foot, mixed-used project, including The Shops at Highland Park and The Offices at Highland Park, built by Retail Endeavors Group.
THE PROBLEM: Signs onsite indicate the project was to open in summer 2009, but the project has yet to break ground. Sullivan says it has been delayed due to the economy, but only for about 12 months.
THE PROSPECT: “The project is still on track, but with the national slowdown, it’s been pushed back,” he says.
Plans for the site include a 235,965-square-foot anchor, a 65,000-square-foot fitness center, 302,781 square feet of additional retail, 305,300 square feet of commercial offices, a 62,900-square-foot cinema, a 64,917-square-foot entertainment anchor, 23,225 square feet of freestanding restaurants, 243,100 square feet of residential and a 131,400-square-foot hotel. An IMAX theater by Dickinson Theaters is expected as a major tenant, as well as a Legoland theme park and boat rides.
The Outlet Shoppes at Oklahoma City
THE PLAN: In early 2008, Oklahoma City Council members signed a contract to approve $8 million in economic incentives for Horizon Group Properties and Cousins Properties to co-develop Oklahoma City’s first outlet center at Interstate 40 and Council Road, with the understanding that the developers would provide an initial $50 million investment. Depending on the success of the center, another 75,000 square feet could be added later.
The team retained Timberlake Construction as general contractor for its $65 million, 350,000-square-foot retail center, to be called The Outlet Shoppes at Oklahoma City.
THE PROBLEM: Construction was scheduled to begin in November 2008, then was delayed until this spring due to the economy.
THE PROSPECT: Horizon Group Properties Senior Vice President Thomas Rumptz says his group remains cautiously optimistic that construction will begin on the project this summer, with a target completion date of July 2010.
“We have some strong tenants in the marketplace that we’ve worked with and have had in the last 45 to 60 days,” Rumptz says. “So we hope to start construction by the latter part of summer and open by the latter part of 2010. This facility will be similar to our El Paso center (The Outlet Shoppes at El Paso). We built 380,000 square feet of retail in El Paso, and Oklahoma City’s will be 350,000 square feet, but still with 90 retailers on site.”
Despite the current economy, Rumptz says he believes outlets will continue to remain strong in the retail industry.
“If you look at the retail segments right now, the strongest retail segment is the outlet centers,” he says. “And it’s not always that way, so I don’t have the pleasure of saying that all of the time. Most of the retailers that we’re working with have stayed with the outlet project. It’s part of their growth plan, and their corporate success is outlet centers.”
Reply With Quote
Originally Posted by fromdust
Bookmarks