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posts in "USA Southeast"

Merrick Park in Coral Gables

Posted on August 17, 2011 by Tadd Miller

In a different economic time I am sure Merrick Park would have been one of the award winning mixed use projects of the last decade. Unfortunately, Rouse’s vision in Coral Gables has been severely affected by the economic downturn. The concept is exciting, and the central courtyard and attention to detail is impeccable. Yet, it had little traffic on multiple visits recently. It is hard to fault a specific project in Florida, especially in the hard hit Miami area. However, there are some lessons in its design and programming to take away from it. It feels somewhat dark entering in, it has storefront retail where there is no traffic, there is very limited parking, and the entire center faces inward on itself. These issues are compounded by the mixed use dilemma between the retail and residential uses (which comes first?). As readers here will know, it is very difficult for residential to be successful without quality retail underneath it. But also, if you have a bunch of empty residences, then it can also undermine the leasing of the retail spaces.

Photos

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This entry was posted in Project Highlight, USA Southeast

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A Visit to Mercato in North Naples

Posted on March 07, 2011 by David Leazenby

mercato_mixed_use_milhaus_3On a trip to Naples last week I found myself at Mercato for dinner on a warm March evening (a nice break from the Midwest winter this year). The project is a joint venture of The Lutgert Companies and The Barron Collier Companies. While the project is still struggling to lease up the commercial space, the restaurants were buzzing with traffic. By an informal sampling of cars on site (plenty of Bentleys, Porches, Ferraris, Rolls-Royces) the crowds in North Naples are still visiting malls to dine. Like everywhere else in America, they are still avoiding the retail stores.

Sitting on top of the half-vacant retail spaces are 92 condos (also half-sold after two years). I don't think that is too bad to have 2 sales per month in 2009 and 2010 anywhere. Starting today at $419,000, it's still among the priciest off-beach living in Southwest Florida. mercato_mixed_use_milhaus_1While I found the urban design of the place lacking a lot in comfort, I suppose its attraction is that its the only option for buyers that crave anything resembling urbanism. Being able to walk to a Whole Foods will always sell some condos, too. This visit got me thinking about other condo deals located at malls and what their futures will be like. Mercato and Coconut Point (just up US 41 in Estero) have been nightmares for their developers due to timing in the market, but more importantly what is the real long term viability (price appreciation at or above market) of condo living in such suburban, mega-retail locations? Is there just too much uncertainty in the first floor spaces for most condo buyers to commit to the upper floors? Apartments are an easy answer, but does it apply everywhere? Will people buy condos at a suburban mall again and what needs to be different about the living experience to entice them to do it?

This entry was posted in Project Highlight, USA Southeast

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Hotel Indigo and Residences at 151

Posted on September 15, 2010 by David Leazenby

The business traveler or casual visitor to the Hotel Indigo in Asheville probably doesn't recognize the complex design decisions that resulted in this impressive 13-story mixed-use structure towering over the freeway on the northern edge of downtown. This site is extremely tight, just wide enough to fit one bay of parking as a podium for the tower itself. It is wedged between the I-240 freeway and busy Haywood Street. You will notice in the pictures below the one-way circulator at the ends of the podium for cars to maneuver between the levels. The 100-room hotel opened in early 2009 along with a restaurant and fitness studio. Unfortunately, it also opened with zero pre-sales of the 12 condos on the upper 4 floors known as the Residences at 151. With prices ranging from $910,000-$1,450,000 for 1,500-2,285 square feet, the units offer the most dramatic views of the surrounding hills and mountains around the city. Of course, there are some lessons learned here for developers. I notice there is no separate elevator for the condos and only one parking space for each unit. Also, a tour of the units revealed some pretty high noise levels coming from the freeway below, presumably due to the type of windows. It all sounds fine for a few nights in a hotel, but could become a nuisance to a $1M+ condo buyer. While the design, layout and finishes of the units are very well done and complement the contemporary styling of the building, the lack of exclusivity and minimal parking at this price point has no doubt challenged the property in this tough market. Currently, the units are also available for 1/10 fractional, deeded, sale at a much nicer price: from $129,000 for 14 days per year at any of the Elite Alliance properties. Monthly dues start at $537/mo. Owners, or their guests, can stay as often as they like here at their home for $20/night. Actual numbers were not available, but some fractionals have been sold. It's really a good option if you need to be in Asheville a significant amount of time, but don't want the hassle of maintaining a home.

This entry was posted in Hospitality, Housing, USA Southeast and tagged Hospitality

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Great Blocks - Wall Street in Asheville, NC

Posted on September 13, 2010 by David Leazenby

Asheville1I have my favorite blocks in different cities - sometimes just a half-block stretch qualifies or sometimes it takes an entire block or two to create a memorable place. The perfect combination of street width, building height, retail uses, furniture, landscaping, windows, awnings and signage can make me want to linger for hours. Of course, European cities have their American counterparts beat in every category of urban design. However, there are notable special places here if you look for them. In Asheville, North Carolina there is one such place - Wall Street near its intersection with Battery Park Avenue. In a nod to New York City, the original design of Asheville included these familiar street names and it's very own flatiron building (another one of my favorites and a post for another day). To accent the obvious, there is a carefully placed sculpture of a large black iron marking the entrance to the block. The street is narrow and it angles, thus forcing your view of the shops and restaurants. One of the best techniques to get people to walk down a street is to eliminate any change in grade. On Wall Street the street and sidewalk work together as one with paver patterns, colors, and associated bollards leading the way. Every American city should be so fortunate to have great pedestrian streets. Downtown Asheville has one of the best.

This entry was posted in USA Southeast

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Village at Gulfstream - Adventura, FL

Posted on September 13, 2010 by Tadd Miller

A recent Milhaus site visit to Village at Gulfstream spurred significant debate regarding project viability. specifically, is project viability discernible in Miami on a short-term basis, the poster child of the current economic collapse. Arguments can be made that delivering a project in Miami is a success of some magnitude in and of itself, however, the significant vacancy and lack of any significant traffic begs the viability question. Although the Village at Gulfstream begs this question, so do the majority of project in the greater Miami area, so a successful project will likely only be known in years to come.
Gulfstream also questions gaming (horse track & casino) as a mixed use driver. Vegas does mixed use successfully, but such an anomaly can't be recreated. Lack of ability to attract a hotelier or residential user at Gulfstream seems an argument to the contrary, however, a new Whole Foods would indicate the success.
Reality is that Gulfstream is an extremely complex site in any market, sandwiched within depressed demographics, quasi industrial uses, low end retailers, highway/thoroughfare barriers, and competitive market forces. The only real chance for success here is creation of an entire neighborhood within the site, and that was the original plan. With parking, infrastructure, and pads ready for hotel and residential uses, time will likely produce success. Without a sponsor like Forest City, this site would probably not have made it, but with their backing, long term, I would bet that this one becomes a success.

This entry was posted in USA Southeast

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Southwest Florida’s Mixed-Use; Bayfront Center

Posted on August 18, 2010 by Milhaus Development

Guest post by Kyle Nicholas, Market Analyst and Intern with Milhaus Development
This is the third in a three part series on Southwest Florida.

Located just east of downtown Naples, Bayfront was the first true mixed-use project of our series. Bayfront offers award winning cuisine, several bars/pubs, and is home to some of Naples’ most desired art. It’s Mediterranean exterior, street level retail, and waterfront views truly set Bayfront apart from others.

Bayfront has been a true success for the developers because it was the first large scale mixed-use project completed in the area. Retailers, restaurants, and potential condo buyers flocked to the development. Unlike most area condos, family found the mixed-use project appealing because of the entertainment it provided to children as well as the great hardscape that is situated above the parking garage.

One unforeseen factor hinders the potential at Bayfront. Buyers of condos are limited to the size of boats they potentially could dock at the condo. Bayfront is situated well inland of the pass to access the Gulf. Numerous bridges, shoals, and long “No-Wake” zones deter buyers of condos. Because of this, potential buyers and my parents’ included choose to buy elsewhere, where Gulf access was much easier and there were less restrictions on the size of the watercraft they could purchase.

Overall Bayfront is a true testament to where development in southwest Florida is going. Having spent numerous nights growing up in the pool at Bayfront, I believe its’ location, amenities, and great retail anchors will provide a long-lasting development success.

This entry was posted in USA Southeast

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Southwest Florida’s Mixed-Use: The Strada at Mercato

Posted on August 13, 2010 by Milhaus Development

Guest Post by Kyle Nicholas, Market Analyst and Intern with Milhaus Development
This is the second of a three part series on Southwest Florida:

Until Mercato was developed, North Naples fell behind Naples and South Fort Myers for development of retail shops. Mercato connects these two communities and enables the residents and tourists a venue in which they can enjoy the pinnacle of retail shops, restaurants, and bars.

Every year, I celebrate Christmas and New Year’s in southwest Florida with my family, and my cousins and myself typically find ourselves spend New Year’s on Naples’ 5th Avenue South. This year, we switched it up and were pleasantly surprised with the time we had at Mercato. We were able to spend the evening enjoying some of the best seafood ever at McCormick’s and Schmick’s, and then found our way in The Pub and Blue Martini. Mercato’s entertainment connects its’ goers with venues, they’re unable to find elsewhere in the area.

Unfortunately, due to the untimely completion of Mercado, retail occupancy suffers. Residential sales struggle, and some units are being converted to rentals. With these large spaces sitting vacant, the potential for Mercado hinders.

With retail vacancies at unheard of numbers, how is it feasible to fill these spaces to help drive residential sales of some of the nicest condos in the area? Everyone knows retail traffic provides a significant portion of residential sales. Are short-term retail leases at a lower rates the answer to the struggling economy?

This entry was posted in USA Southeast

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South Florida's Mixed Use

Posted on July 26, 2010 by Milhaus Development

mixed-use-coconut-point-300x227Growing up in South Florida, I was able to see one of the fastest growing and wealthiest communities in the world first hand. I watched as US-41 transformed from a 2-lane road into a 6-lane highway. I watched as the small immediate care center I was born in was replaced by a gorgeous shopping center, which was quickly overshadowed and outdated by the new mixed-use development The Strada at Mercato. And this has all happened in the 21 years I’ve been alive. Imagine the transition my dad experienced, now a 53 year Naples native.

It seemed that until the recent struggles, every time when I would visit on vacation, new and revolutionizing mixed-use developments would appear. One of these developments, Coconut Point, was formulated by a partnership led by Simon Property Group. This relationship combined the ideals of both outdoor mall style retail shops and restaurants, with high-end condominiums overlooking the shops. The atmosphere surrounding this development is astonishing and it continues to outperform all other area competition.

Don Graves, a successful area realtor, bought into the idea early enough that he purchased a unit strictly as a personal investment. Graves currently rents his unit year-round to area visitors. Since completion, he’s been able get a better understanding of why people love the mixed-use concept so much. Graves believes, “Coconut Point has been a success because people from the Northeast are used to the accessibility it provides, and others quickly take a liking to lifestyle as well.” Tenants of Grave’s are within short walking distance to movie theaters, high-end retailers, and outstanding cuisine. This ease of lifestyle has created a demand unlike other area properties. Grave’s contributed a tremendous amount of the success at Coconut Point to Simon’s ability to secure long term retail tenants. This demand is representative of the change of lifestyle and the changing of people’s behaviors.

Personally I believe that with the struggles Americans have faced in recent years, lifestyle changes will only increase the demand for mixed use project that allow owners and tenants an easier and more cost efficient lifestyle than typical suburban life. Walks to grocery stores, area restaurants, and other daily stops will become the norm as Americans become more aware of the environmental and financial impacts endured by typical suburban practices. South Florida’s mixed-use projects like The Strada at Mercato, Coconut Point, and Bayshore represent the beginning of this transition in one of the nation’s best areas.

In the coming weeks, I will critically approach each of these specific development in an exciting and informative blog series on “What worked, and what didn’t,” interviewing Florida’s key development individuals.

This entry was posted in Housing, USA Southeast

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Great Expectations in Raleigh

Posted on July 21, 2010 by David Leazenby

img_0008-300x225At first glance the Raleigh-Durham-Chapel Hill-Cary-Apex (are there more?) area is a sprawling and disconnected metropolis. There are multiple centers, congested freeways, no rail transit, and many office campus settings. Tough place for mixing uses? Not at all. In the last 18 hours, I’ve seen North Hills, downtown Raleigh, South Glenwood, Oberlin Court, and Cameron Village. Four and five stories of residential, over retail with structured parking is very normal. The Downtown/Glenwood South market seems to be stabilizing, especially with the HUE going through its conversion to apartments soon. There are a few more plans that are getting dusted off. I think there is great potential here. Hope to write about a Milhaus project here in the near future.

This entry was posted in USA Southeast

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