(Read more on the multifamily market.)
ROCK HILL, MO-Construction is nearing completion and the designs have been completed for the first phase of the Market at McKnight mixed-use development located at the intersection of North Rock Hill, McKnight and Manchester roads. The $95-million project will be developed in two phases with the first phase consisting of 126,000 sf of retail space, says Pete Sebelski, VP of development for Novus Development, based in Webster Groves. The cost for the first phase of the project, which is on 13.4 acres, is approximately $35 million, he says.
The location is on highly trafficked Manchester Road and near Highway 40, which is expected to temporarily close early next year. "The closure of Highway 40 is going to direct a lot more traffic down Manchester Road," he says. The location is also south of Ladue and Clayton, and north of Webster Groves, which are all upscale neighborhoods.
The first phase is currently 41% leased, Sebelski tells GlobeSt.com. Anchor tenant Stein Mart opened last week in a 35,000-sf space and Starbucks is expected to open before Thanksgiving. Other tenants will include Clarkson Eye Care, Cartridge World, Tan Co. and Bandana's. A sub-anchor space of 25,000 sf is still available, he says.
The asking lease rate for retail on Manchester Road, "where the signage and visibility is at its peak," is between $23 per sf and $25 per sf, triple net. The asking lease rate for the back stores near the sub-anchor is between $20 per sf and $22 per sf, triple net. The first phase has gathering areas with a water fountain and park benches and also has dual frontage with parking in the center of the retail with six feet of green space in between.
The second phase of the development is expected to include 150,000 sf of retail space, 50,000 sf of office space and 150,000 sf of residential space on a parcel of more than 24 acres. The development will have residential units along McKnight Road which does not have the visibility that Manchester Road has, Sebelski notes.
Novus has not decided what type of residential will be developed but is considering assisted living or apartment units, Sebelski explains. "It is going to be what the market bears," he says. Construction on the second phase is expected to begin in the third quarter of 2008 and is estimated to be complete in 2010.
Novus will receive a total of $13.1 million in public financial incentives for the first phase of the project and a total of $18.2 million of financial incentives for the second phase, Sebelski tells GlobeSt.com. St. Louis-based the Lawrence Group completed the design for the first phase of the development and has also provided the master planning for the project. Hensley Construction is the general contractor for the development.
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.
