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Mixed-Use Developments Coming to University Towns

CHICAGO, IOWA CITY, IA—University towns tend to have dated hospitality product, and CA Ventures plans to build a 575K mixed-use project in Iowa City, including a new Hyatt.

By Brian J. Rogal | brianjrogal | | Updated on July 20, 2016

 

ia-CAVRiverfrontCrossings1 (3) The development will be the city’s largest mixed-use community and the first to include off-campus, market-rate housing and a hospitality component.
CHICAGO, IOWA CITY, IA—Officials from CA Ventures say that their CA Student Living LLC has broken ground on RISE at Riverfront Crossings, a 575,000-square-foot mixed-use development in downtown Iowa City, IA, the home of the University of Iowa. The new development will  be the city’s largest mixed-use community and the first to combine off-campus, market-rate housing and a new hotel.    “We find demand for new hospitality product in most of the student housing markets we work in,”  JJ Smith , chief operating officer at CA Student Living, tells GlobeSt.com. ”Most university markets, Ann Arbor is another good example, have dated hospitality product, usually from the 60s and 70s.”   “Hotels are a lot harder to finance,” he says, due to some of the uncertainty over occupancy that always hangs over new ventures in the sector. “In the apartment market, supply and demand are much more tangible.” In addition, “smaller markets won’t attract institutional capital,” so for hotels developers like CA Ventures have to piece together financing from sources such as high net worth individuals.     “CA Ventures’ successful track record in high-rise residential, student housing and hotel development was a big factor in winning this contract,” Smith adds. “In addition to bringing hundreds of jobs to the Iowa City community, the development will attract a mix of students and working professionals while simultaneously addressing the diverse housing needs of Iowa City’s fast-growing population.” Slated for construction on a 1.5-acre site at the southwest corner of Court and Linn streets, the development will include a 15-story residential tower with 332 fully furnished, market-rate apartments, as well as a 14-story, 151-key Hyatt Place hotel. The company plans to complete the development in summer 2018, with pre-leasing for the residences slated to begin next August. Chicago-based CA Ventures will not use public financial incentives for the project. It will feature 6,000 square feet of ground-level retail space at the northeast corner of the development, with frontage along Linn St. It will also include 25,000 square feet of class A office space on the third and fourth floors of the hotel tower. In some ways, it’s not a surprise that Iowa City has attracted this kind of attention. According to the US Census Bureau , the population grew by 7.7% between April 2010 and July 2014, surpassing the national average of 3.9% for population growth in metro areas across the US during the same time period. RISE at Riverfront Crossings sits just blocks from the Iowa River and Pentacrest, the focal point of the university’s main campus. The development is also within walking distance of the Ped Mall, as well as other shopping and dining destinations in downtown Iowa City. “When we assessed the market, we knew right away that this underutilized site would help us meet the growing demand for modern hospitality options and amenity-rich rental housing close to campus and downtown Iowa City,” says Smith. “As an anchor in the burgeoning Riverfront Crossings neighborhood, this development will be a convenient housing option for both students and area professionals, including employees of the school and nearby University of Iowa Hospitals and Clinics. It will also facilitate short-term stays for visiting family members and tourists who, until now, have had a limited number of downtown hotel rooms available to them.”  Chicago-based Hartshorne Plunkard Architecture is the lead architect on the project, while Des Moines-based Beal Derkenne Construction has been retained as general contractor.

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