CHICAGO-Interra Development Partners LLC, a joint venture between locally based Interra-Vision Development LLC and Parsippany, NJ-based Prudential Real Estate Investors, is acquiring land to develop retail centers in Florida, California and Arizona. The partnership is acquiring four land parcels for a total of $82 million and plans to develop four retail centers with a total investment of $218 million.
The joint venture acquired a 19-acre site in Florida City, FL. The site is located on the northwest corner of South Dixie Highway and East Davis Parkway and is “across the street from a very high grossing Super Wal-Mart,” says Tom Gamsjaeger, president of Interra Development and co-owner of Interra-Vision. Florida City Centre will be a 145,000-sf neighborhood center anchored by a 30,000-sf Best Buy. The center may have a 28,000-sf grocer store as a junior anchor and will likely have a “specialty coffee” retailer and a couple of restaurants, Gamsjaeger says.
Site work and grading has already started and the project is expected to be completed by the end of 2008. The estimated cost of the project is $45 million. Gadinsky Real Estate LLC, based in Miami Beach, is the leasing representative for the development.
In Gilbert, AZ the joint venture acquired a 17-acre site on the southwest corner of San Tan Village Parkway and Williams Field Road. The property was acquired for $22 million. The San Tan Square will have a first phase of 61,000 sf of retail space, a 20,000-sf day care center, four restaurant pads and Comerica and Choice Bank on out lots with a second phase that will have about 40,000 sf of specialty retail space. Construction on the $52-million development is expected to begin in the first quarter of 2008 for the first phase and in 2009 for the second phase. Each phase is expected to take about nine months to complete, Gamsjaeger says. Financing for the project is being provided by Chicago-based Anglo Irish Bank. The site is located across from San Tan Village, a 1.5-million-sf regional mall being developed by Westcor.
In Maricopa, AZ, 30 acres of land have been acquired and 24 acres are under contract at the northwest corner of Porter and Maricopa Casa Grande Highway. The cost to acquire both parcels is $14 million. A $56-million retail development is planned with a total of 511,500 sf of retail space, which will be located adjacent to a planned Super Wal-Mart. Construction is expected to begin in 2009 with the first stores probably opening in the end of 2009, Gamsjaeger says.
In Murrieta, CA, the partnership has closed on buying a 16-acre parcel and has 34 acres under contract at the northeast corner of I-15 and I-215. “That land site was attractive because of its location right at the Golden Triangle where I-15 and I-210 intersect and because it is halfway between Los Angeles and San Diego,” he says. The cost for both parcels is $28 million. The joint venture is planning a $65-million mixed-use town center with approximately 400,000 sf of retail, office and hotel space, Gamsjaeger tells GlobeSt.com. Construction is expected to begin in the fall of 2008 and be completed in the fall of 2009. The development will be located across from a proposed lifestyle center being developed by Garrett Group as part of a 66-acre mixed-use development.
The developments are part of a $250 million joint venture announced in May, as first reported by GlobeSt.com. “We have exceeded our first allocation and are working on increasing the size of the joint venture,” Gamsjaeger says. “We are continuing to work on more projects and look forward to our continued relationship with Prudential to take advantage of market opportunities in those areas that we are developing.” The partnership is focusing on “high-growth” areas. In the west, the joint venture is focusing on the Phoenix area, the San Francisco Bay area; California's Central Valley, including Sacramento and Stockton; and San Diego County, Orange County and Riverside County in California. The joint venture is also focusing on Miami and Dade County in Southeast Florida and the Midwest, including the Chicago Metropolitan area, Indiana, Ohio and Michigan.
The focus of the venture is to develop retail and build-to-suit projects. The joint venture is also developing a $12-million power center in Surprise, AZ and a $25-million neighborhood center with 29,000 sf of retail in Peoria, AZ. Three build-to-suit Walgreen's are also being constructed in South Lyon, MI; Manteca, CA and Bellefontaine, OH with each project estimated to cost between $4 million and $6 million.
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