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Download (.PDF) 2004 Corporate Sponsors Adolfson & Peterson Construction The Avalon Group Benson-Orth Associates, Inc. Bremer Bank, N.A. Brookfield Properties (US) LLC news The Business Journal Cambridge Commercial Realty CB Richard Ellis Volume 18, Number 9 September 2004 The Collyard Group Commercial Partners Title, LLC Construction 70, Inc. CSM Corporation FeatureLifestyle Center Turns One Year Cuningham Group Architecture, P.A. Dalbec Roofing Old! A Unique Experience Exeter Realty Company Faegre & Benson LLP General Growth Properties, Inc. by Christopher M. Naumann, KKE Architects, Inc. Glimcher Properties/Northtown Mall Gray Plant Mooty t is a summer afternoon in Minnesota and a He looks forward to dining on an outdoor patio Great Clips, Inc. man is sitting on a park bench overlooking of a nice, nearby restaurant later in the evening. H.J. Development, LLP a courtyard filled with flowers. The shade I This is the experience of a visitor to the Shoppes Heitman Financial Services LLC provided by an overhead trellis is just enough at Arbor Lakes, a unique 411,000 square foot J.L. Sullivan Construction, Inc. to keep the glare off his book, which he just lifestyle center located in the bustling northwest Jones Lang LaSalle purchased at the corner bookstore. Since his suburb of Maple Grove, Minnesota. Developed KKE Architects, Inc. two teenagers are enjoying pizza and a movie by partners Opus Development and RED Kraus-Anderson Companies down the street, he now has as chance to relax Development, the center represents the first of a LandAmerica Commonwealth and read. A cup of coffee that he grabbed new type of retail format for Minnesota, and Landform from a nearby coffee shop will keep him Larkin, Hoffman, Daly & Lindgren, Ltd. this month, it is celebrating the first anniversary settled as he awaits his spouse, who is LaSalle Bank of its grand opening. shopping the boutiques that line the block. M & I Bank Madison Marquette Lifestyle Center continued on page 2 m The Marshall Group Messerli & Kramer, P.A. Midwest Maintenance & Mechanical, Inc. Minnesota Roadways Snapshot North American Properties, Inc. Egret Plaza NorthMarq Capital, Inc. Oppidan, Inc. Location: SE corner of Radisson Road Opus Northwest LLC (2 miles north of 109th Avenue) and Cloud Park Midwest Commercial Real Estate Drive in Blaine, Minnesota Paster Enterprises, LLC Opening: Currently under construction – to Reliance Development Company, LLP be completed Fall 2004 RLK-Kuusisto Ltd. Robert Muir Company Developer: Oakwood Land Development Robins, Kaplan, Miller & Ciresi LLP Ridgedale Center Leasing Agent: Anita D. Johnson, RSM McGladrey, Inc. AJ Commercial Real Estate, Inc. (763) 502-8500 RSP Architects Architect: Rosa Architectural Group, Inc. Construction Style: Wood frame building Ryan Companies US, Inc. with block, brick and stucco. Gable roof. SuperValu Inc. Construction Contractor: Daily Additional Facts: Tenants dream come true. Target Corporation Construction New construction with rates under $20 p.s.f. in TCF National Bank Minnesota GLA: 12,500 square feet Towle Financial Services Blaine. It’s a gold mine. Situated next to “The United Properties # of Stores: Approximately 8 Lakes” residential development with 3,700 U.S. Bank homes, and across from the TPC golf course Anchor Tenants: Mobil Gas Venture Mortgage Corporation with 750 existing new homes. Average Station/Convenience Store Weis Builders, Inc. household income is $92,972 for 1-mile radius, Wells Fargo Bank, N.A. Market Area Served: Blaine $75,213 for 3-mile radius. $16-19 psf net rent Welsh Companies, LLC and estimated CAM/tax is $3.00 p.s.f. Minimum Westwood Professional Services bay size is 1,250 s.f and up to 6,250 s.f. Witcher Construction Company LIFESTYLE RATES continued property along I-94. Opus then forged a experienced strong sales over the holidays. partnership with lifestyle center specialists The figures generated in the spring and Lifestyle Center Basics RED Development, and hired a design summer months were surprising. team led by KKE Architects, Inc. and According to Michaelis, sales from the A lifestyle center is an open-air retail format Damon Farber and Associates. The team month of March were nearly as strong as that allows for high concentrations of small embarked on an intense design process that sales from the holidays, and the month of boutique stores and entertainment venues. yielded a plan with eight retail buildings June exceeded March sales figures by as The format tends to shy away from big box connected by a street system that flanked a much as 20%. These figures prove that a retailers and traditional department store grand courtyard. This courtyard contained lifestyle center format can thrive, even in a anchors to focus instead on unique retailing a mix of gathering spaces and landscapes. cold weather climate. environments. Although it is currently a Medium box tenants provided some retail hot concept in the retail industry, the idea is Besides the strong sales, the center has also anchors on the center’s perimeter along not new. Open-air centers have been experienced strong tenant occupancy, with with traditional outlots. The center would common in the American south for 90% occupancy expected by the end of this be tied to an existing movie theater and a decades. However, the label “lifestyle year without any tenant turnover. The neighboring regional commuter park-and- center” was tagged to high-end open-air center just opened Gymboree and expects ride station. centers in the late 1990’s by developers to open GAP, and the restaurant Biaggi’s who began to evolve the concept. By Just over a year and a half later, on later this fall. Its outlot development is today’s definition, a lifestyle center is a September 12, 2003, The Shoppes at Arbor also finishing with concepts Boston Pizza format that offers a diverse grouping of Lakes conducted its grand opening. The under construction and the upscale Granite retail options, in a pedestrian friendly, open center, although not fully complete, was City Brewery is now open for business. air-environment. Typically, these centers over 80% leased and featured many According to Michaelis, the center is also have great amounts of building design and national retailers, some opening their very having a tremendous impact on the detailing, and offer amenities that create first stores in the market. The center also community, drawing patrons from beyond truly unique shopping experiences. offered a mix of unique local operators who the expected trade area, including added a level of retail diversity not found From a developer’s point of view, lifestyle communities as far south as Minnetonka, with any other establishments in the region. centers are becoming extremely desirable Plymouth, and Wayzata. Out-state travelers formats to pursue. They cost considerably The lifestyle concept had finally arrived in have also been visiting as they travel the I-94 less to develop and operate over time when Minnesota, but not without controversy. corridor, not only shopping at the Shoppes, compared to a traditional regional mall, yet Some critics called the center a suburban but also filling hotels and bringing business they still generate top rents when “fake-town” with no real sense of place to into the city of Maple Grove. compared to malls in similar markets. draw retailing energy. Others doubted the It seems that shoppers aren’t the only ones According to the International Council of potential of the open-air concept for the who have noticed the new center. Just Shopping Centers, an average person who Midwest; exalting the inclement winter before Christmas of last year, only four shops at a lifestyle center spends weather Minnesota faces and how it would months after opening, Opus sold the approximately $84 per hour while the have a negative impact on shoppers. Shoppes at Arbor Lakes to The Prudential typical traditional mall customer only Insurance Co. of America for a sum of $87 spends $58 per hour. Lifestyle-center sales million, or $211 per square foot. Opus average $298 per square foot vs. traditional purchased the land for $15 million in 2002 malls’ average of $242 per square foot. prior to development. These facts, combined with lower CAM costs that are typically found with lifestyle The lifestyle concept has certainly arrived centers, make lifestyle centers more into the Minnesota landscape with a roar. desirable locations from a tenant’s The concept has been so successful that perspective. From a consumer’s point of another center is already being proposed view, lifestyle centers provide a wider for the east metro by the same developers. variety of retailing options. These centers Given the success of the Shoppes at Arbor support both quick shopping trips and full- One Year Later Lakes over the past year, there is no doubt day excursions in one location. This added we will be seeing more of these retail convenience and unique experience make During the course of the past year, the formats in the future. the lifestyle center format the best overall Shoppes have generated much debate, but how have they lived up to expectations? destination for many consumers. Do you know what “Micropolitan According to Scott Michaelis, general Statistical Area” is? It is a new government Brief History of the Shoppes manager of the Shoppes at Arbor Lakes, designation describing and acknowledging at Arbor Lakes the center is surpassing projections. that smaller growth towns located between Although this past year’s exceptionally larger metropolitan cities along the nations Over three and a half years ago, Opus cold and snowy winter months did affect highways and byways. These micropolitan Northwest LLC began plans for its next performance, as it affected most all retail towns attract business, retail and housing and project in Maple Grove. They proposed a centers during the same period, the center need to be identified and tracked.
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