(For more retail coverage, click GlobeSt.com/RETAIL.)
BLOOMFIELD HILLS, MI-Developers Diversified Realty and Coventry Real Estate Advisors have formed a joint venture with the Lynn, MA-based Harbor Cos. to develop Bloomfield Park, a lifestyle property within Harbor's 88-acre master-planned community along Telegraph Road. The first phase of the development will include a 560,000-sf retail lifestyle center with an estimated pro forma coast of approximately $250 million. Phase 1 will also include residential and office facilities, not being developed by these partners.
A DDR spokesman tells GlobeSt.com the land is being cleared now. "We will announce an tenant roster and firm timeline for construction and store openings later this fall," he says.
The JV between Cleveland-based DDR and New York City-based Coventry Real Estate Fund II was formed with equity capital commitments from several institutional investors, and Coventry serves as the investment manager. DDR co-invests 20% of the equity required for each fund investment and is responsible for day-to-day development, management and leasing. It also earns fees for property management, leasing and construction management along with a promoted interest, which it shares with Coventry, after return to the investors.
To date, the JV has invested in redevelopments and developments representing approximately $1.2 billion. This May, the JV acquired controlling interests in three retail properties for an aggregate $226 million. The buy included a majority stake in the 1.3-million-sf Tri-County Mall in Cincinnati, 100% of the 325,000-sf Fairplain Plaza in Benton Harbor, and a 50%-interest in Watters Creek at Montgomery Farm in Allen, TX, where it will develop a 350,000-sf town center within the 500-acre Montgomery Farm community.
Harbor began assembling the acreage, which provides access to the Southfield/Birmingham area, in 1992. Boston-based Elkus Manfredi, the architecture firm that designed the retail areas of Time Warner Center in New York City and City Place in West Palm Beach, FL, designed the pedestrian-friendly Bloomfield Park master plan.
Of Bloomfield Park, in a statement, Scott Wolstein, DDR's chairman and CEO, says, "the average household income within a five-mile radius is in excess of $137,000. With the ongoing migration of traditional mall retailers into the open-air format, tenant interest is this asset class is clearly increasing."
"Bloomfield Park is representative of our strategic objective to develop in joint-venture formats new retail properties across the country," says Peter Henkel, president and CEO of Coventry, in a statement. "We continue to find exciting opportunities in the value-added retail sector, which we are uniquely positioned to pursue."
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