As presently planned, Tower Records would remain a tenant of the property, but it will be nearly twice the size and have neighbors this time around, as there is planned 70,000-sf of retail topped with as many as 150 condominium units.
If all continues smoothly, the company should be ready to apply for the master use and building permit by summer. Assuming that goes smoothly as well, completion will come "sometime around the second or third quarter or 2004," says Winningham.
"I'd say Tower Records (currently in 12,000 sf) will end up with about 20,000 square feet of the retail portion," Winningham tells GlobeSt.com, "And we're in tenant negotiations for the remainder."
Above Tower Records, Winningham says Armada plans to build three stories of multi-family housing. "There will be between 120 and 150 condominiums, but the square footages haven't been decided yet. That's part of the design process now under way, but we expect they will be on the smaller rather than the larger side."
As for the type of housing product destined for 500 Mercer, Winningham asserts, "This project is not intended to compete against the high-end product in towers now under construction in downtown. That's a very specialized market—and one that's not doing so well right now. Ours are moderate, entry-level units for first- or second-generation condominium buyers."
One of the affordability factors in 500 Mercer's favor is the fact that the liability insurance policy on the condominium portion of the project was purchased sometime ago—before the effects of a myriad of lawsuits and claims had pushed the envelope of premiums. "The insurance situation is difficult," says Winningham, "and one that is adding to the reason housing is becoming so expensive."
Asking prices for the 500 Mercer condos will be determined further down the planning course. "We have no price points in mind yet," states Winningham.
The design team is another factor in the development yet to be decided. "We have been using Hewitt & Assoc. in approval process," says Winningham, "and David Hewitt's firm has been doing a great job. Final selections will be tenant-driven, and that's all I can say about it right now." The development director says groundbreaking should come in about a year.
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