Monday, March 31, 2014

Santana Row 2

Santana Row is one of the most successful mixed-use projects of all time in the US. It has been emulated by many, yet nothing has really taken off quite like this ten-year ongoing project. Federal Realty, the developers that continue to own and operate the Row, have reached a physical limit in expansion opportunity. After this next round of development which will include three giant office complexes and a flagship retail space to cap the street, they will be completely out of physical space needed to continue to expand. Well, that is until the announcement below.

Federal Realty is taking over 11.6 acres fronting Winchester where the current Century Theaters sit. I know there is a lot of controversy about this space. Personally, I think if it is going to be redeveloped then the ideal developer would be Federal Realty. They have clearly shown that they could make a successful project with a lot of complex moving parts come together. While they have not made any announcement as to what their exact plans are for the area, I think offices will be a greater part of the mix than the original Santana Row. San Jose needs more jobs at the moment than residential, especially in that general Midtown/Uptown area. I also think there is potential to integrate the new BRT into the new development, which I really hope they consider give the lack of current public transit access. A well integrated BRT line would be the next best thing to having Light Rail running between Downtown San Jose and Santana Row.

Regardless of whether you or for or against this project, this will definitely be something interesting to keep tabs on.


Federal Realty Investment Trust's West Coast president Jeff Berkes has issued the following statement:

 “We are excited to announce that Federal Realty has entered into a long-term ground lease with the owners of the 11.6-acre site fronting Winchester Boulevard, opposite Santana Row, that is currently occupied by Century Theaters.  We are working with the City of San Jose to explore several different development alternatives that will complement our existing property, Santana Row, and the surrounding community.  We look forward to commencing the public process. We have no further comment at this time.”
-- Jeff Berkes, President, West Coast Federal Realty Investment Trust



About Santana Row
Santana Row a 1.5 million square foot mixed used development in the heart of San Jose, California, is Silicon Valley's premier destination for shopping,
dining, living and nightlife. Surrounded by landscaped gardens, parks and plazas, Santana Row features over 70 retail shops, more than 20 acclaimed restaurants, a 212-room boutique hotel and six-screen movie theatre. In addition to the dynamic retail collection, Santana Row offers 622 residential units featuring a fitness center, rooftop pool and resort-living accommodations, and 65,000 square feet of office space at 300 Santana Row, its newest office address. Santana Row is a property of www.federalrealty.com (NYSE:FRT), headquartered in Rockville, Maryland. For more information, please visitwww.santanarow.com.

About Federal Realty
Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development, and redevelopment of high quality retail assets. Federal Realty's portfolio (excluding joint venture properties) contains approximately 20 million square feet located primarily in strategically selected metropolitan markets in the Northeast, Mid-Atlantic and California. In addition, the Trust has an ownership interest in approximately 1.0 million square feet of retail space through a joint venture in which the Trust has a 30% interest. Our operating portfolio (excluding joint venture properties) was 95.3% leased to national, regional, and local retailers as of September 30, 2013, with no single tenant accounting for more than approximately 3.4% of annualized base rent. Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 46 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P MidCap 400 company and its shares are traded on the NYSE under the symbol FRT.

15 comments:

  1. I figured they would be the ones to redevelop that area. It only made sense. And I agree, they've done a great job with Santana Row.

    That said, I understand the theaters have to go. But it'd be nice if they saved one of them. I think there's potential for it to be used as not only a movie theater. I think Federal Realty could really make it work and integrate it into their plans.

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  2. Same as Anon #1, I am for saving the main dome as well. The new project can incorporate it somehow. Problem is I think all 3 theatres are pretty dilapidated (may not look that bad on the outside but it probably is, since they are 50 years old and some change), and retrofitting them would bring significant costs.

    It's up to Federal Realty if they want to save and restore them or not. For all the people who are against tearing them down, money talks, and unless they have a way of crowd-funding the restoration, it's probably not happening.

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  3. Preserve architecture worth preserving. When someone comes from out of town, do you tell them "You really need to see the Century domes"? I doubt it. You're far more likely to take them to Santana Row. I honestly find it embarrassing that the domes are what constitute something worth fighting for in this city of sad architecture.

    Buildings downtown like the old city hall that have been lost are a real shame. These domes are not the same thing. Let them go.

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    1. I agree with this.

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    2. I agree with this for the most part. The domes do have some nostalgic value for me, but at the end of the day, if they're gone, I don't really see it as any real lost.

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    3. Finally, some reality here. It's bad enough the preservation people got behind historic status on the old fire station #1, just so some people can open a fire museum! How many people will be flying into town for that attraction! If you want it- move it to Kelley park

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  4. Movie theater ticket sales have been on a steady double-digit decline for the past 15 years and I don't see why or how could anyone justify keeping *everything* untouched.

    The ideal compromise would be to keep the original retro dome under one condition: its renovation/rehab/re-purposing cannot be impeded by some arbitrary neighborhood committee or the city bureaucrats, otherwise it'll get even nastier before you know it.

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  5. If anyone else scratches their head at 'BRT' as I did, I believe the reference is for http://www.vta.org/projects-and-programs/transit/bus-rapid-transit-program

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    1. I followed this link. It doesn't look like they plan to go near VF/SR...I assume the thinking is that there might be the opportunity to re-route things. For some reason I just can't get excited about BRT. It might be one of those things that you need to see first before you can appreciate it.

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    2. Sorry, I should have said "Bus Rapid Transit (BRT)." Have a look at the yellow line in the link. There is a station that will service Valley Fair/Santana Row. The yellow line goes from Downtown all the way down Stevens Creek.

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    3. Duh...I was looking at the blue line! Boy that yellow line would be an awesome light rail extension, although I think it's something like $100 million per mile. With dedicated lane and stations that are like train-stations ... it's a decent alternative.

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  6. Winchester/Stevens Creek/880/Moorpark ... man ... it's bad now. Gonna be a place to avoid if you're in a car. Feel bad for the residents on/around Olin/Hansen/Maplewood ... Talk about being trapped.

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  7. The first BRT project has been announced as going from Santa Clara Street downtown eastward out Alum Rock to the hills. It's estimated to be completed by some time in 2015. There is no announced timeline for a BRT line on Stevens Creek, but obviously it will wait until after the Alum Rock line, and perhaps others after that.
    The delay may be a good thing for this area. Let's see if it even works. I see a lot of largely empty buses on Stevens Creek in the present system. It's questionable as to how many west San Jose residents want to ride a bus, any bus. How much demand is there for bus rides to downtown? Or to Cupertino?

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    1. Kent, the 23 line along WSC/Stevens Creek has been successful enough (9,800 daily riders as of October 2012) that VTA introduced the limited stop 323 on the same route, in part to relieve overcrowding on the 23. See http://www.deanza.edu/ecopass/vta323.html.

      Just because you may periodically see buses that are less than full at certain times of day doesn't mean the line isn't being used. I ride VTA light rail every day to work and during peak periods trains can be 60-80% full (and the bike space is spilling over), yet all the time people claim that light rail is empty throughout the day. Maybe people are misled by the tinted windows and the fact that many of the seats in the lower part of the trains are below window level...

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  8. 23 is actually used by many people who live in San Jose end either work at Apple or go to De Anza College.

    I think BRT is interesting but ultimately I think elevated monorail is best. It is grade seperated, uses a smaller track than light rail (you have a thin block overhead instead of the wide and thick light rail guideway) and more easily expanded. Examples are the monorails in Seattle and Disneyland. When they built the one in Seattle they didn't even have to close the road underneath.

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