(For more retail coverage, click GlobeSt.com/RETAIL.)
CLEVELAND-Led by retail, the pace of development under way and planned by locally based Forest City Enterprises continues unabated. Four of the six projects that will begin within the next 12 months are retail.
They follow groundbreaking for the 547,000-sf East River Plaza on a former industrial site in Manhattan and construction of a 180,000-sf Bass Pro Shop Outdoor World adjacent the company's Victoria Gardens lifestyle center in Southern California, both of which took place during second quarter. In addition, San Francisco Centre on Market Street will open on Sept. 28, and, in third quarter, 673,000-sf third phase of Northfield Stapleton will open in Denver.
The new San Francisco project, a JV with Westfield Group, combines with the existing San Francisco Centre to create a 1.5-million-sf retail/office project. Nordstrom and Bloomingdale's anchor the new component at all five levels. During a second-quarter conference call, Charles Ratner, Forest City's president and CEO, said the new portion would open more than 90% leased.
A 140,000-sf Macy's will anchor the third phase of Northfield Stapleton. The additional phase takes the entire Stapleton project to more than two million sf of retail. Other anchors are Super Target, Circuit City, a Harkins movie complex and Colorado's first Bass Pro Shop Outdoor World.
The four upcoming retail projects are the 441,000-sf Bolingbrook South, adjacent to the company's Promenade Bolingbrook mixed-use project; the 523,000-sf Shops at Wiregrass near Tampa; a 488,000-sf lifestyle center at Summit at Lehigh Valley in Pennsylvania, and an 855,000-sf White Oak Village in Richmond, VA.
Although second-quarter and first-half earnings and revenues dropped this year, compared with last, Ratner said comparable net operating income on properties company-wide rose 5.4% for second quarter, and NOI in the retail portfolio increased 5% for the quarter. The drop in quarterly EBDT earnings to $56.7 million from $64.9 million and revenue slide to $266.3 million, versus $283 million were attributed primarily to a decrease in land sales and fewer sales of outparcels adjacent to retail centers. The results were anticipated, Ratner said, "coming off a record year for this activity in 2005."
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