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Kyle Matthews, VP of investments at the Encino, CA-office of Marcus & Millichap, who is not involved in the project, tells GlobeSt.com that now is a good time for this type of development. “It appears the worst is behind us for now, and given this projects location I think it will capitalize on some of the momentum we have started to see in both the retail and residential sectors,” he says. “The retail should lease up fairly quickly due to its proximity to the Promenade, the Pier, and all of the hotels located right across Ocean Ave. Both components of the residential will do well also.”

Matthews continues that there is always a market for affordable rental residences. “The market rate condominiums may face a little more of a challenge given they will trade in jumbo loan territory, but frankly I think the buyers will be wealthy empty nesters moving back into the city from the suburbs, and younger high income earners who can afford the mortgage,” he says. “Furthermore, if Related can bring the units on-line quickly enough they will benefit from the historically cheap rates we are seeing in the for sale housing sector.”

The Village is within walking distance of a diverse range of Santa Monica attractions and amenities, including the 3^rd Street Promenade, public parks and beaches, Main Street, world-class restaurants, shopping, hotels and nightlife. Next door to the Village is the city’s $55-million seven-acre Palisades Garden Walk & Town Square designed by James Corner and expected to be an international landmark when it opens in 2013, according to a prepared statement.

One block away is the Santa Monica Civic Auditorium, which is slated for a renovation. The Santa Monica City Hall also is scheduled for a $50-million restoration and revitalization. And anchoring the 3^rd Street Promenade is Santa Monica Place which re-opened in August 2010 after a $265-million renovation as an open-air, upscale center.

“The Village will enhance the image of Santa Monica as a place of beauty, style and spirit,” said Mayor Richard Bloom at the groundbreaking ceremony. “The City’s commitment to affordable housing is an integral part of this development. It will help ensure that Santa Monica is an accessible and welcoming community that fosters economic diversity.”

According to Related’s Witte, “Our intent was to create the ultimate Santa Monica Village. We are very sensitive to the responsibility we have for this site that is a one-of-a-kind treasure. Thus, we brought together a superb team that can give it the sense of place it deserves.”

Related’s team of designers is led by Santa Monica-based architects Moore Ruble Yudell. The Santa Monica firm of Koning Eizenberg Architecture is the architect for the 160 affordable apartments. Mia Lehrer + Associates created the landscape plan.

“The Village is at the center of it all,” said Andy Agle, director of housing and economic development for the city, at the groundbreaking ceremony. “It is a block from the Santa Monica terminus of the new Expo Line and within easy walking distance to all major destinations including the beach, Civic Auditorium, 3rd Street Promenade, Ocean Avenue hotels and restaurants, Santa Monica Pier, Palisades Park and, of course, the stunning new Palisades Garden Walk and Town Square.”

According to Witte, “This is one of a few condominium projects to be financed in the past year.” He points out that the Resmark Cos. is a partner in the158 condominiums while Community Corp. of Santa Monica is a partner in the 160 affordable apartments. Construction financing is being provided by Wells Fargo Bank and HSBC.