(For more retail coverage, click GlobeSt.com/RETAIL.)
FAIRVIEW, TX-With local officials clearing a $50-million incentive package, the MGHerring Group will break ground in the fall on one million sf of regional retail space and 300 residential rental units in the northern tier.
Gar Herring, president of the Dallas-based development group, tells GlobeSt.com that preleasing is ahead of schedule with anchor deals about to be sealed for the $150-million-plus Village at Fairview, a 192-acre foothold at the corner of US Highway 75 and Stacy Road. According to a previous GlobeSt.com article, he's been negotiating with Dillard's, Foley's and JCPenney. The Newark-based Prudential Financial Inc. is the development's equity backer.
Despite the preleasing activity, Herring says the catalyst to get construction moving was this week's council approval of the incentive package, the value of which is based on reimbursement from sales tax collections and municipal costs for expanding Stacy Road and extending Fairview Parkway as part of the infrastructure development. Under the terms, a percentage of the sales taxes will be reimbursed for 22 years.
Herring says he will execute a final contract within days with a residential developer. Meanwhile, he's locked in discussions with several developers for the office and hotel components. One side of the "Main Street" development will put residential units atop retail and the other side will have buildings topped off with office space, Herring says.
"All users are finding they can achieve a premium on their rents by being in this kind of exciting, open-air, mixed-use environment," Herring says. The Village at Fairview represents about half of the mixed-use space on the drawing boards of two developers with abutting acreage in two Collin County cities.
Herring says additional traction is sure to be gained at the International Council of Shopping Centers' annual showground in Las Vegas in May. The Village at Fairview, scheduled to open in fall 2008, was designed by JPRA of Bloomington Hills, MI. The MGHerring Group and Prudential secured construction financing from Bank of America.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
