www.REBusinessOnline.com October 2018 • Volume 16, Issue 2 THE PORT OF SAN DIEGO PULLS IN NEW OPPORTUNITIES The Port of San Diego has taken back ownership of Seaport Village, providing new opportunities on the San Diego bayfront. By Nellie Day Giving the development a “reason to exist” — whether it be historical, futuristic, fantastical or cultural — and applying this principle throughout a redevelopment’s entire design process can simulate an immersive theme-park-esque world. REINVENTING THE DEAD MALL Integrating entertainment and adding mixed uses are two ways to reinvigorate a flailing mall. Seaport San Diego developer 1HWY1 anticipates this new project will be a mixed-use By Bill Coan program that may contain such programmatic components as hotels, restaurants, retail and attractions. he downward spiral of brick- The most common plan for West- Tand-mortar retail and the grow- ern commercial real estate developers ing number of dead malls offer has been transforming these proper- he Port of San Diego has a new are very clear on their vision for Sea- real estate developers a unique op- ties into mixed-use centers and/or Trole. Now that the 40-year port Village during the four- to six- portunity to reinvent the vast shop- integrating themed entertainment ground lease with TRC (former- year interim period before the project ping center wastelands. These empty elements. This method of breath- ly Terramar) for Seaport Village has is ultimately redeveloped. and closed properties have key ad- ing new life into dead malls through ended, the self-supporting public- “We want locals, visitors and ten- vantages, including strategic loca- multifaceted entertainment enhances benefit corporation has stepped into ants to understand that Seaport Vil- tions, existing infrastructure, trans- property marketability, increases foot the shoes of “owner.” The port and its lage is and will be open as a vibrant portation stops and large parking traffic and drives additional revenue officials are tasked with looking after and prosperous destination for sever- lots, which make them seem like wor- streams. For example, the Sherman the 14-acre shopping, dining and en- al more years,” says Penny Maus, de- thy investments. However, attempt- Oaks Galleria in Los Angeles — fea- tertainment complex on behalf of the partment manager of real estate and ing to reinvent dead malls can often tured in films like “Back to the Future public. Though the port only regained business development for the Port of be a real estate developers’ biggest Part II” and “Terminator II” — was control of the site on Oct. 1, officials see SAN DIEGO, page 53 trap. You must know your audience. see MALLS, page 54 INSIDE THIS ISSUE Economic Development Spotlight: Socal, the Southwest are Primed for More Development page 34 Colorado Brick-and-Mortar Retail Can Three Trends Impacting Market Highlight Survive…and Here’s How Industrial Real Estate page 24 page 46 page 47 THE BEST IN THE WEST NKF Capital Markets ranked #1 retail investment firm in the West* for first half 2018. SAN DIEGO LOS ANGELES SAN FRANCISCO SEATTLE PETE BETHEA BILL BAUMAN NICHOLAS BICARDO BILLY SLEETH T +1 858 875 3630 T +1 213 298 3593 T +1 415 445 5172 T +1 206 518 9567 [email protected] [email protected] [email protected] [email protected] CA RE Lic #00922535 CA RE Lic #00969493 CA RE Lic #01380524 ROB IPPOLITO KYLE MILLER BRANDON ROGOFF PAUL SLEETH T +1 858 875 5925 T +1 213 298 3597 T +1 415 445 5163 T +1 206 518 9547 [email protected] [email protected] [email protected] [email protected] CA RE Lic #01242854 CA RE Lic #01716644 CA RE Lic #01949914 NEWPORT BEACH PHOENIX GLENN RUDY CJ OSBRINK T +1 949 608 2014 T +1 602 952 3841 [email protected] [email protected] CA RE LIc #1412484 AZ RE Lic #BR672532000 CA RE Lic #01900338 GREG MAY PHIL BRODKIN CHUCK SEUFFERLEIN EVP, Regional Managing Director EVP, Managing Director President, Northwest Orange County Los Angeles San Francisco +1 949 608 2101 +1 213 596 2270 +1 408 982 8406 [email protected] [email protected] [email protected] North America • Latin America • Europe • Asia-Pacific • Africa • Middle East ngkf.com *Rankings determined by total investment volume, for more information please visit the RCA website. Sources: Real Capital Analytics, Inc. Top Brokers Report H1’18. 855.553.1488 “ You know what I like best about dealing with Opus Bank and my Opus commercial real estate banker? Sure the $7 billion they’ve funded over the last seven years says staying power. But I like the fact that her brain just never shuts off. Seriously. Which is why somewhere between the 6th and 7th tee, she comes up with a creative bridge loan that underwrites tomorrow’s rents to get me the capital I need today. Absolute hole-in-one. ” Commercial Real Estate Financing | Escrow and Exchange Services | Depository Services | Treasury Management © Copyright 2018 Opus Bank, All rights reserved. OpusBank.com/LetsDoThis PUBLISHERS’ NOTE October 2018 • Volume 16, Issue 2 DEVELOPING A REPUTATION There are a few reminders through- out this issue that we are now 10 years removed from the Lehman Brothers col- lapse, noted as the unofficial start of the Great Recession. The following few years FRANCE MEDIA, INC. Western Real Estate Business (ISSN were a period of great trials and tribula- Jerry France .............................Chairman & CEO/Publisher 1547–965X) is published monthly by tions for global companies to individuals Scott France ................................. President/Co-Publisher France Publications, Inc., d/b/a France alike. Michael Jacobs...............................Chief Financial Officer Media, Inc. Editorial and advertising While not every business and person Jaime Lackey.............................Vice President, Marketing offices are located at Two Securities emerged unscathed, our industry and the & Digital Strategy Centre, 3500 Piedmont Rd., Suite 415, professionals in it have gained a knowl- Randall Shearin...............................Senior Vice President, Atlanta, GA 30305. Telephone (404) edge and perspective that will hopefully Editorial & Operations 832-8262, facsimile (404) 832-8260. Jerry France Scott France mitigate some of the negative aspects that Chairman & CEO/ President/ E-mail: [email protected]. come with an inevitable downturn. But Publisher Co-Publisher EDITORIAL POSTMASTER: Send address changes that was 10 years ago… Matt Valley...........Editorial Director, Real Estate Regionals to: Western Real Estate Business, P.O. Box Today, development is absolutely thriv- ter and the development of SteelCraft, an Nellie Day................................................................Editor 47065, Plymouth, MN 55447-0065. ing in nearly every region out West. We outdoor food court in repurposed ship- Amy Bigley Works .................................... Associate Editor Western Real Estate Business is know this because we sat down with some ping containers, which will debut in their John Nelson..............................................Assistant Editor a registered trademark of France of the region’s top economic development respective cities soon. Meanwhile, Indio Julie Hunt ...............................................Graphic Designer Publications, Inc. Periodicals postage teams. They were chalked full of so much and Peoria are hard at work cementing paid at Atlanta GA, and additional activity that we couldn’t possibly fit all their identities with bustling downtowns ADVERTISING mailing offices. Subscription rates: USA 1 their projects into this already hefty story. and business-friendly development zones. Scott France ..................................................Co-Publisher year $67; 2 years: $116. Single copies are Industrial activity is booming in the High Just as development has changes, so, Robin Reimold.............................................Media Advisor $10.00. For subscriber services, including Desert, where Moreno Valley recently ap- too, has marketing. It’s not a subject we Craig McIntosh.............................................Media Advisor change of address or subscriptions, proved the World Logistics Center, the touch on often, but technology is so preva- Ryan Nixon ..................................................Media Advisor please email [email protected] or largest corporate industrial park in Cali- lent in all aspects of our industry that we Barbara Sherer ............................................Media Advisor call (800) 869-6882. fornia’s history, while Apple Valley is set wanted to make sure you were up to date ©2018 France Publications, Inc. For to receive the Big Lots Distribution Center, on the latest innovative marketing strate- INTERFACE CONFERENCE GROUP reprints or to photocopy articles, please the largest facility of its kind in the High gies that will usher your business into the Richard Kelley.................................. Senior Vice President contact Barbara Sherer, manager of Desert. digital age. Alicia Lewis.......................................Conference Manager special advertising at (404) 832-8262. Henderson is preparing for the Las Ve- We were pleasantly surprised to see just The opinions and statements made by gas Raiders as the city will be home to its how busy developers, city officials and con- ADMINISTRATION $75 million corporate office and training tractors have been out West, and we think authors, contributors and advertisers field. Burbank and Bellflower are focused you will be, too. If you have a project you Teresa Hennington.....................................Office