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Vol. 8, No. 18 September 15, 2008

Developers Bag Groceries

Tri-land Properties, Harwood International, Hanover Co. and AvalonBay Communities Inc.
underscore grocery-anchored sites in upcoming multi-use projects, even with options for grocer tenants
increasing and vacancies rising. Redevelopment of a large grocer is the answer for Tri-Land’s $30M
Brywood Center in east Kansas City, Mo. Harwood sees the strategic importance of bringing a high-end
grocery retailer to its $150M The Square mixed-use tower, which is a component of massive project in
Uptown Dallas. A Whole Foods will be the anchor for Hanover’s $500M pedestrian friendly project
in Uptown Houston. AvalonBay brings the first apartment building over a grocery store on Seattle’s
office-heavy Eastside.

Developers think about grocery retail before anything else because they can shape the customer base for an
entire project and the surrounding area. High volume markets can generate high traffic to the center with
nearly 10 thousand transactions or more a day. Developers know brands make a difference, so it makes
sense to tap high-end retailers like Whole Foods and Sunnyvale Market in order to raise leasing costs, but
right now these brands have a lot of choices and need to be romanced. The glut of retail development over
the past few years has left a lot of vacancies giving grocery brands plenty of options. Vacancy in the
grocery-anchored segment climbs toward 8%, the highest in close to 10 years. So even with retail
development deliveries expected to drop to almost 10% in 2009, over this year’s 8.2% expected figure, it
might not be time to just pounce on the next strip center thinking you can land a top grocery brand. Many
big players are pushing a lot of projects to the 2009 pipeline. Regency Centers bumped close to $300M
worth of projects to a shadow pipeline for 2010 and 2011, and very little is on tap for 2009. Four of those
projects are grocery-anchored retail developments, which are supposed to be the one stalwart that retail
developers can count on. For Tri-land, Harwood, and AvalonBay, redevelopment, niche locations and
large mixed-use projects might be the key. Each are making their grocery-anchored centers a part of high
profile projects that can catch or already have caught strong tenant interest.

Tri-land aims to profit with an 180,000-s.f. grocery anchored Brywood Center, in east Kansas City, Mo.
Avoiding the costs of new construction and targeting the existing clientele in the area, EVP Hugh
Robinson will renovate and expand the center’s Price Chopper. Plans will also include an 80,000-s.f.
second anchor and about 20,000 s.f. of small shops. Upon completion, the development is set to have from
270,000 s.f. to 280,0000 s.f. of retail space. Expect dirt to push in the first quarter of 2009 and a two- to
three- year gap before the second anchor comes online. Tri-land will receive $5.7M in Tax Increment
Financing. The company expands its grocery strategy to Georgia with a $42M project set to come online in
Q2 2009. The Crossings at Four Corners in Smyrna, spanning 220,000 s.f. to 250,000 s.f., will also be
anchored by a new food store. Current blueprints indicate a 30,000-s.f. junior anchor and some out parcels.

Apartments over an 8,000-s.f. Sunnyvale Market is the key to Harwood’s roughly $150M, 33-story
mixed-use development in Uptown Dallas. The 400,000-s.f. The Square will make up the seventh phase of
the 17-phase, $4B Harwood District MPC in Uptown Dallas. The tower will have 254 apartments above
the upscale grocer. Nearly 33,000 s.f. of retail space will include three to five restaurants rounding out the
mix. With over 13,000 people expected to be within walking distance, VP of Development Spence Sowa
knows the potential of introducing a high-end retailer to the area. He draws inspiration from his study trip
of at least 15 New York neighborhoods and aims to adopt that city feel to this big development. The
Sunnyvale Market will become Uptown’s first high-end, gourmet grocery store that will not carry
traditional staple goods. It will be more of a take-away spot where tenants can stop by for their daily
necessities and gourmet food to go. Anticipate groundbreaking late 2009. Harwood is currently pouring
concrete for an office development for the St. Anne Court project in the MPC.
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Page 2 Crittenden Real Estate Developers™

Developers Bag Groceries …

Continued from Page 1
Hanover Co. partners with MetLife Inc. and Wulfe & Co. to develop a 37-story, 237-unit luxury tower in
the BLVD Place mixed-use project in Houston. The $500M project is set to include 500,000 s.f. of retail
space anchored by an 80,000-s.f. Whole Foods Market. Expect groundbreaking for the pedestrian friendly
project in the heart of Uptown Houston this fall with a completion somewhere in 2011. BLVD Place will
also include a five-star, high-rise condo-hotel and 250,000 s.f. of office space. The 1.45-acre site will
include a private residential lounge with a catering kitchen, theater, library, fitness club and a 19,000-s.f.
rooftop terrace.

AvalonBay capitalizes on the growing Bellevue, Wash., submarket that holds the second-largest
concentration of office space in the Seattle market. The $80M Avalon Meydenbauer features 368 units
atop a 57,000-s.f. Safeway. VP of Development Brian Fritz intends to attract young professionals and
empty nesters. Apartment rents should range from $1,125/month to $2,860/month. Expect AvalonBay to
pursue other urban apartment/grocery, high-density projects in the market.

Large Plate Users Could Be Vacancy Answer

Office vacancies rise in many markets, but demand for large-user space remains steady. Capstone
Quadrangle along with VK Development, Opus Northwest and Cortland County Industrial
Development Agency (CCIA) jump in to business park projects anchored by office towers catering to big
companies that usually set deep roots. Capstone plans over 650,000 s.f. of office space in VK’s over
$200M mixed-use project in Brookfield, Wis. Opus Northwest will spend $80M on Opus Corporate
Park I and II in Chesterfield, Mo. The project will capitalize on the strong Class-A market in the St. Louis
suburb. CCIA targets large-end users for its Finger Lakes East Business Park development in
Cortlandville, N.Y., a university market ripe for new corporations looking to make a home.

Now that the national office vacancy rate hovers around 15%, you would expect developers to back off
large office projects, especially Class-A developments targeting tenants with enormous space needs. But
certain regions have a void in large space and some bigger companies are less affected by a struggling
economy. Large corporations looking to expand are on the search for bigger parcels, while cities and
developers court these mammoth companies to secure steady tenant base, as well as infuse the local
economy on a more permanent basis. In an effort to draw businesses to the area, some counties such as
Cortland County offer tax incentives for expanding into these office developments. Capstone and Opus
Northwest target office tenants with space needs between 35,000 s.f. and 173,000 s.f., while CCIA project
can accommodate companies with large acreage needs in its project.

Capstone’s strategy for the 66-acre Percheron Square in Brookfield calls for buildings ranging from
100,000 s.f. to 130,000 s.f. aimed at large corporate tenants who can lease up to two-thirds of the building
at once. Count on Capstone Quadrangle to develop the majority of the office development in VK’s $200M
to $250M mixed-use project, which weighs heavily on the office component. Although VK Development
will do the necessary zoning for the Planned Development District, as well as the infrastructure for the
whole property, each parcel will be sold off to different developers who will take charge of each individual
project. Capstone Principal Paul Quick plans up to 650,000 s.f. of office space to be built on 16 acres.
Targeting mostly large Class-A product, this component should be completed within a year of breaking
ground. Although there is a high vacancy rate in the office market right now, there is a scarcity of large
spaces. While no tenants have been signed yet, several large corporations are poking around.

President of VK Development Ajay Kuttempoor lines up other developers besides Capstone Quadrangle,
such as Outlook Development, Endeavor Development, Sunrise Senior Living and Ryan Companies for
Phase I. This phase is made up of six parts and is expected to break ground in Spring 2009 with a final
buildout expected to be anywhere from five to seven years depending on each developer.

Opus Northwest revs up its presence in the Chesterfield market with the 14-acre Opus Corporate Park I and
II. Tenants will be able to rent space for as little as one-floor plate at 34,600 s.f. on up to a complete
building penciling out to 172,500 s.f. The project will be the company’s second investment in the suburban
market after the highly successful One Chesterfield Place development.
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Crittenden Real Estate Developers™ Page 3

Large Plate Users Could Be Vacancy Answer …

Continued from Page 2
Opus Northwest Director of Real Estate Development John Langa has reason to be pleased with One
Chesterfield Place, which is posting higher rents while vacancies drop. The market overall sees higher
rents as well and the vacancy rate is below 6% for the first time since 1998. Covering Opus Northwest’s
14-acre site will be two 5-story office buildings, aimed at large plate users. The company intends to begin
construction in May 2009 on the first building, followed by production on the second within 18 months.
Anticipate a 12-month construction period for each. While Opus has not secured any tenants so far, talks
with several prospective companies are serious. Although the company looks to sign tenants before
construction, they will move ahead regardless.

CCIA’s Finger Lakes East Business Park targets commercial and light industrial development.
Executive Director Tom Gillson positions the 127-acre development to cater to the lack of inventory in
the area. Cortland County needs to accommodate company expansions and recruit new companies who
may even qualify for tax incentives upon moving. With groundbreaking scheduled for late Spring 2009,
Gillson believes it will take four to five years to reach buildout. Cortland County will finance
approximately $4M for the infrastructure. Although Courtland itself has a population of about 48,000,
the business park is geographically surrounded by Cornell University, Ithaca College, Syracuse University
and Cortland University. The proximity to these universities will prove beneficial to this project as tenants
can tap a qualified workforce of fresh graduates and a wealth of knowledge to couple their investments.
Competitively priced at an average of $16K/acre, and letter of commitments being made already with
major tenants in the works, Gillson sees good things to come.

TODs Gain Momentum

Meta Housing Corp. and Icon Partners hop aboard mixed-use TODs filling market gaps near public
transit. Such projects catch the eye of state officials who not only give their approval but also provide
financial backing. Meta Housing’s $190M Long Beach Station caters to the needs of the senior
community with a retail anchored and residential TOD. Icon Partners SVP Marc Sullivan looks to serve
corporations with large Class-A office needs at its $560M Las Colinas Station TOD in Irving, Texas.

Tenant demand, whether it is corporate or residential, increases near public transportation as train and bus
lines extend further into the suburbs. Developers and tenants stick close to locations highly accessible to
public transportation in order to tap a variety of folks, from workforce to retirees. Incorporating a lot of
office space into TODs guarantees better leasing percentages. Companies looking to expand realize that
closeness to public transportation will not only provide a better and more easily accessible workforce
but also decrease demand for parking — a daunting expense — and drop the overall cost of leasing
per square foot.
Projects that do not directly incorporate office space provide access to transportation leading directly to
workforce areas such as city downtowns or urban cores. Such mixed-use developments are increasing,
providing more affordable housing for typical commuters. Because each of these projects fulfills a
component integral to make transportation viable they will each benefit from public funding
from transportations agencies. Meta Housing seeks a combination of equity from public agencies and
bonds to add to its private equity placement and Icon expects to gain funds from state and local
transportation agencies.

Meta Housing’s 3.7-acre Long Beach Station is currently in the planning stages and aims to break ground
in June 2009. The TOD will feature 145 affordable senior housing rentals to mimic the success of the
firm’s Burbank Senior Artist Colony in Burbank, Calif. Look for 210 for-sale condos for families
earning 50% or less of the area mean income. The company counts on a senior population in the market
that avoids driving and relies heavily on public transportation. Meta Housing also plans 80,000 s.f. of retail
in the mix. No pre-leasing has been arranged yet but Assistant Project Manager and Director of Corporate
Marketing Nancy Morris hopes for a grocery store to anchor one of two large spots. She also aims to
include a variety of smaller shops and restaurants to expand upon the large resurgence currently taking
place in Long Beach, Calif. With construction expected take anywhere from 18 months to two years, look
for buildout by Summer 2011.
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Page 4 Crittenden Real Estate Developers™

Tods Gain Momentum …

Continued from Page 3
Meta Housing’s Long Beach Station will be directly across the street from the Los Angles bound Metro
Blue Line light rail station run by the Los Angles County Metropolitan Transportation Authority. Two
other bus stops also pass directly in front of the development. Meta-Housing hopes to acquire the full
$17M of available money for TOD funding through Proposition 1C from The California Department of
Housing and Transportation. The Long Beach Development Housing Company provides the loans to buy
the land. Private equity and 4% bonds come from California Tax Credit Allocation Committee.

Icon’s 9.75-acre mixed-use TOD will take up nearly 1.5 million s.f. of occupied space in the Las Colinas
MPC in Irving. The DART will connect Las Colinas with Downtown Dallas, once completed in 2011.
With no new Class-A office development in Irving for more than 20 years, Icon is strategically well
positioned to take advantage of the heavy rider ship to the area. Large corporations will be targeted to
lease out much of the commercial space. Set to break ground in the first quarter of 2009, Phase I includes a
12-story office building totaling 330,000 s.f. and a 26-story residential building totaling 260,000 s.f. Phase
II will incorporate another 260,000-s.f. residential tower, a 330,000-s.f. office tower and a hotel. Anticipate
a 26-month construction period on the first phase. Wary of the unstable market, Icon will wait for Phase I
to be fully completed before embarking on the subsequent phases. Chances are Phase II will not start
before 2013. With limited plans to include retail in the mix, Icon banks on the 300,000-s.f. retail space
going up just west of the site in the Water Street project by Urban Partners and Gables Residential that
is set to open fall of 2010. Icon Partners will receive funding from the Transport Innovation Fund from
local jurisdictions and plans to finance the rest through conventional means.

Strong Demand Generators Spark Preleasing

Lillibridge Healthcare Real Estate Trust, BremnerDuke, Sky Development, Capital Partners
Development Group and Rockefeller Group Development Corporation count on big demand generators
to bring in higher preleasing rates and eventually higher ROIs for their medical office projects. Lillibridge
has an $18M facility in the works in Florida, while BremnerDuke eyes a $20.4M project also in the
Sunshine State. Sky Development brings a much-needed brand new $50M medical office project to
Pembrook Pines, Fla. On the West Coast, Capital Partners and Rockefeller Group team up to target U.S.
Marines with a $35M project in Oceanside, Calif.

By working with state-of-the-art healthcare facilities, fitness centers, local hospitals, or a market’s unique
needs, medical office developers are listening and responding to the tunes of each market’s requirements;
and it is turning into strong preleasing commitments for their projects. BremnerDuke’s 90,000-s.f.
development has the lowest preleasing of these three projects at 40% and is still three months away from
groundbreaking. Lillibridge’s latest medical office benefits from its proximity to a healthcare campus by
posting 90% preleasing rates. The nearby Marine Base helps Capital Partners and Rockefeller obtain a
100% lease rate nearly six months before dirt push.

Lillibridge Healthcare partners with local physicians to develop the $18M MOB for the new Health First
healthcare campus in Viera, Fla. Health First owns the land but has leased the parcel to Lillibridge for the
purpose of this office building. Another recent trend — joining fitness centers and hospitals — should reel
in a lot of doctor and patient demand. The 76,000-s.f. building is immediately adjacent to and connected
with a pedestrian courtyard to Health First’s new $21M fitness center and $175M hospital making for easy
access to the medical offices. Lillibridge VP of Development Damien Donati projects a January 2009 start
date and completion slated for January 2010. Lillibridge’s in-house design and space planners custom
designed floor plans to allow physicians to gain more efficiency in their practice to possibly save on
square footage or increased patient throughput. There is also room for more development on the campus.

Housing sale increases spark in BremnerDuke’s $20.4M medical office facility in Trinity, Fla. VP of
Florida Lori Lingenfelter anticipates the need for more medical space to compete with the constantly
growing population of the area. Keeping consistent with its role as healthcare developers, BremnerDuke
teams with what will soon be Trinity Hospital (formerly known as Community Hospital) as part of a
replacement hospital project. Built in one phase, the four-story building is expected to break ground by the
end of 2008 and be fully builtout and ready for occupancy by Spring 2010. Continued on Page 6

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Crittenden Real Estate Developers™ Page 5

CONTACTS

AvalonBay Communities, Inc. (Seattle Office): 11808 Northup Way, Suite W311, Bellevue, WA 98005. Brian Fritz,
VP of Development, (425) 576-2100, fax (425) 576-8447. brian_fritz@avalonbay.com

BremnerDuke Healthcare Real Estate: 10150 Highland Manor Drive, Suite 150, Tampa, FL 33610. Lori Lingenfelter,
VP Florida, (813) 635-8512, fax (813) 635-8560. lori.lingenfelter@bremnerduke.com

Capital Partners Development Group: 2890 Kilgore Road, Suite 115, Rancho Cordova, CA 95670-6152. John Buckel,
Senior Partner, (916) 851- 9800, fax (916) 851-9850. jbuckel@capitaldevco.com

Capstone Quadrangle: N17 W24222 Riverwood Drive, Suite 160, Waukesha, Wisconsin 53188-1134. Paul Quick, Principal,
(262) 523-1122, fax (262) 523-1199. paul@capstonequadrangle.com

Carlyle Group, The: 520 Madison Ave., New York, NY 10022. Louis V. Gerstner, Jr., Chairman, (212) 381-4900,
fax (212) 381-4901. chris.ullman@carlyle.com

Colonial Properties Trust: 2101 Sixth Ave., Suite 750, Birmingham, AL 35203. Ken Marshall, SVP of Development,
(813) 476-0655. kmarshall@colonialprop.com

Courtland County Industrial Development Agency: 37 Church St., Cortland, NY 13045. Tom Gillson, Executive Director,
(607) 756-5005, fax (607) 756- 7901. tom@courtlandbusiness.com

Equity, Inc.: 100 E. Wilson Bridge Road, Suite 200, Worthington, OH 43085. Shad Phipps, Development Officer,
(614) 802-2990, fax (614) 802-2901. sphipps@equity.net

Forest City (Mesa del Sol): 801 University Blvd. S.E., Suite 200, Albuquerque, NM 87106. Anne L. Monson,
VP, Marketing and Public Relations, (505) 452-2600, fax (505) 452-1900. amonson@fcmds.com

Gables Residential (Dallas Office): 3500 Maple Ave., Suite 435, Dallas, TX 75219. Doug Chesnut, SVP/Investments West,
(214) 252-2600. dchesnut@gables.com

Hanover Co.: 5847 San Felipe, Suite 3600 Houston, TX 77057. John Garibaldi, SVP of Development, (713) 267-2100,
fax (713) 267-2121. dev@hanoverco.com

Harwood International: 2828 N. Harwood St., Suite 1600, Harwood, Dallas, TX 75201. Spence Sowa,
Director of Development, (214) 871-0871, fax (214) 468-0207. ssowa@Harwoodinc.com

Icon Partners: 5050 Spring Valley, Suite 200, Dallas, TX 75244. Mark Sullivan, SVP, (972) 367-4823.
msullivan@iconpartners.com

Leslie Group, Inc.: 5060 Parkcenter Ave., Suite B, Dublin, OH 43017. Ron Leslie, President, (614) 760-0701,
fax (614) 760-0705. www.leslie-group.com

Lillibridge Healthcare Real Estate Trust: 200 W. Madison St., 32nd Floor, Chicago, IL 60606-3417. Damien Donati,
VP of Development, Chicago Office, (312) 408-1370; Atlanta Office, (678) 965-4926. ddonati@lillibridge.com

Meta Housing Corp.: 1640 S. Sepulveda Blvd., Suite 425, Los Angeles, CA 90025. Nancy Morris,
Assistant Project Manager/Director of Corporate Marketing, (310) 575-3543, fax (310) 575-3563.
nmorris@metahousing.com

Metlife, Inc: 10 Park Ave., Morristown, NJ 07960. Robert Merck, Head of Real Estate Investments, (973) 355-4449,
fax (973) 355-4460. rmerck@Metlife.com

Molina Healthcare: 8801 Horizon Blvd. N.E., Albuquerque, NM 87113. Sharon Huerta, Director of Government Contracts,
(505) 348-1543; Kathleen O'Guin, Director of Public Relations, (562) 951-8305. kathleen.oguin@molinahealtcare.com

Opus Northwest: 10350 Bren Road W., Minnetonka, MN, 55343. John Langa, Director of Real Estate Development Northwest,
(952) 656-4444. John.langa@opusnw.com

Opus West Corp.: 2555 E. Camelback Road, Suite 800, Phoenix, AZ 85016. Lynn Gibson, Director of Retail Development,
(916) 928-7527. lynn.Gibson@opuswest.com

Pennsylvania Real Estate Investment Trust: The Bellevue, 200 S. Broad St., Philadelphia, PA 19102. Ronald Rubin, CEO,
(215) 875-0700. rrubin@PREIT.com

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Page 6 Crittenden Real Estate Developers™

CONTACTS
RED Development LLC: 4717 Central, Kansas City, MO 64112. Michael Ebert, Partner; Dan Lowe, Managing Partner,
(816) 777-3500. mebert@reddevelopment.com dlowe@reddevelopment.com

Rockefeller Group Development Corp.: 4 Park Plaza, Suite 840, Irvine, CA 92614. Tom McCormick, SVP/Regional
Development Officer, (949) 468-1801. tmccormick@rockgrp.com

Sky Development: 2999 N.E. 191st St., Penthouse 2, Aventura, FL 33180. Gavin Susman, Chief Operating Officer,
(305) 933- 4646 fax (305) 933- 4645. gavin@skydevelopmentinc.com

Tri-land Properties Inc.: 1 Westbrook Corporate Center, Suite 520, Westchester, IL 60154. Hugh Robinson, EVP,
(708) 531-8210, fax (708) 531-8217. hrobinson@trilandproperties.com

Urban Partners: 304 S. Broadway, Suite 400, Los Angeles, CA 90013. Denise Mendoza, Principal Executive Assistant,
(213) 437-0470, fax (213) 437-0474. dmendoza@urbanpartners.net

VK Development: 19275 W. Capitol Drive, Suite 100, Brookfield, WI 53045. Ajay Kuttemperoor, President, (262) 790-6000,
fax (262) 790-6010. ajay@vkdevelopment.com

Wulfe & Co.: 12 Greenway Plaza, Suite 1500, Houston, TX 77046. E.D. Wulfe, President/Principal, (713) 621- 1700,
fax (713) 621- 3244. ewulfe@wulfe.com

Zaremba Group LLC: 14600 Detroit Ave., Cleveland, OH 44107. Walter Zaremba, Chairman/CEO, (216) 221-6600,
fax (216) 221-9742.

Strong Demand Generators Spark Preleasing …

Continued from Page 4
Park Plaza Professional Center in Pembroke Pines, Fla., by Sky Development will bring two 80,000-s.f.
medical office buildings over 9.6 acres of land. Strategically located near Memorial Hospital, which Sky
also owns, the $50M Park Plaza will generate traffic from hospital patients. With the only medical offices
in the market growing increasingly older and out of shape, a need for development of this nature is needed.
Sky’s development of the first green medical buildings in South Florida will incorporate a Physician
Ownership Program for those who want to become Shareholders in the LLC that owns the building. The
first building, which has letters of intent for over 50% of leaseable space, will lease for $24/s.f. triple net
and targets tenants of all aspects of the medical industry; not only doctors but research companies and even
a pharmacy, who was the first to sign a LOI. Construction is set to start the fourth quarter of this year on
the first building and will start on the second building when it is 50% leased. With a construction time
expected to take 12 to14 months, count on the medical offices to be ready by late 2009 early 2010.
Capital Partners Development Company and Rockefeller plan to build a $35M, 84,000-s.f. Veterans Affairs
outpatient clinic at the Seagate Corporate Center in Oceanside, Calif. Capital Partners Project
Development Manager John Buckel and Rockefeller Senior VP of Development Tom McCormick hint at
a February 2009 dirt push for the two-story medical clinic. Catering to Marines living in North San Diego
County, the 8.5-acre built-to-suit project is minutes from the Marine Corps Base at Camp Pendleton.

Shaking Up The Retail Anchor Mix

Equity Inc., Opus West Corp. and Colonial Properties Trust (CPT) beef up their retail pipelines with
big-box anchored projects. Equity teams with Leslie Group Inc., for the almost $60M retail Gateway
Plaza East project in Delaware, Ohio. Opus West targets a mix of big box and junior big-box anchors for
the $100M Jacuzzi Ranch in Antioch, Calif. Two massive department stores anchor CPT’s $100M-plus
Colonial Pinnacle at Cross Creek in Tallahassee, Fla. — a retail-starved primary market.

With demand so low, developers have let their preleasing rates drop to 50% or lower before construction
kicks in, but some even struggle to reach that. So, the need for big-box anchors is even higher if Equity,
Opus West and CPT hope to have retailers on board before shovels strike. Diversifying with more junior
anchors like Opus West plans with Jacuzzi Ranch is an interesting strategy. Others might want to search
high and low for the right spot like CPT did for its Tallahassee project, which sits in a region with not much
in the way of new retail development in nearly 25 years. Continued on Next Page
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Crittenden Real Estate Developers™ Page 7

Shaking Up The Retail Anchor Mix …

Continued from Page 6
Equity Inc. and the Leslie Group Inc., look to build up to 420,000 s.f., or 74 acres of retail space in
Gateway Plaza East in Delaware, Ohio. Development costs come in short of $60M and the project will be
the second largest retail center in the market. Partially built to suit and partially spec space, current plans
include a big-box anchor with room for up to 240,000 s.f., a junior box of about 75,000 s.f. and roughly
seven to eight out lots. Still early in the leasing process, Equity is talking to tenants with strong interests.
Equity Development Officer Shad Phipps anticipates a Spring 2009 construction start with total buildout
three years from now. Two phases are on the drawing board at the moment, with provision for more
depending on leasing trends. Although Gateway Plaza East stands as the second largest retailer in the city,
its falls just 100,000 s.f. shy of Zaremba Group LLC’s $60M Glennwood Commons project, which
proves to be its strongest competitor directly across the street. Glennwood Commons will be anchored by
big-box tenants like The Home Depot, Meijer, Kohl’s and Office Max. Equity and plan to feed off the
synergy of that development and profit from the 7% to 9% annual growth rate expected in Delaware.
Opus West plans to develop 45 acres of land for regional shopping center Jacuzzi Ranch in Antioch, Ca.
The $100M project will reserve 440,000 s.f. of retail space including both big box and junior box users.
Another eight to 10 additional spaces between 30,000 s.f. and 40,000 s.f. could possibly house a number of
destination restaurants. Although plans for the development are finalized, Opus paces itself out during the
slow market to avoid any losses. Waiting on other companies to develop housing nearby, tenants seem
hesitant to commit to the trade area. Opus looks for a 50% pre-leasing rate before beginning construction.
Regardless, Opus Director of Retail Development Lynn Gibson is confident about the project’s prime
location targeting the upper middle income group in the Bay area suburb. Only community retailers serve
the area, presently, and the closest regional retailers are almost 10 to 15 miles away. The yearlong
construction process could be done in one phase, starting as early as Spring 2010. Meanwhile, the firm
stays active with its Temple Gateway project in Tempe, Ariz., and Broadstone Parkway in Dallas.
Colonial Properties works through the entitlement and leasing process on its $100M Colonial Pinnacle at
Cross Creek in Tallahassee, Fla. — the only true regional retail project in the area. Dirt should move
sometime in mid-2009 and take about 18 to 20 months for buildout. More than a lifestyle center, this
174-acre site will draw clientele from the entire Panhandle region, which hasn’t seen significant new retail
in nearly 25 years. Located at the heart of the state capital, the development will be supported by the
stability of the State of Florida capital government operations, as well as students and faculty of Florida
State University. Colonial SVP of Development Ken Marshall will develop well over 900,000 s.f. of
retail, to be anchored by two 100,000-s.f. department stores. Also look for 250,000 s.f. of junior anchor
sites made up of stores sizing from 20,000 s.f. to 50,000 s.f. Expect additional 300,000 s.f. of specialty
shops and 70,000 s.f. of out parcel development that could be retail or restaurants. A 65,000-s.f. movie
theatre is also in the works. Still to be finalized, the project could also include 100,000 s.f. of office space,
a hotel as well as a residential component. The company currently works on a similar 900,000-s.f. mixed-
use project Colonial Pinnacle at Nor Du Lac in Covington, La., and plans to proceed with additional
phases of retail at projects in Alabama, Tennessee and Florida.

Digging Dirt
Retail players are lining up for RED Development’s $400M live/work play mixed-use Akard Place in
Dallas. Nearly 60% of the retail space is either signed or under serious negotiation. Included in the $300M
first phase is 200,000 s.f. of retail space that looks to house a number of restaurants. Potential tenants could
include Blowfish Sushi, Grimaldi’s Pizza and The Counter Burger although nothing has been confirmed.
Development Manager Bart Lowen focuses on entertainment with the retail avoiding traditional soft good
users. Also expect two 25- to 30- story towers, a 150-key five-star full service boutique hotel and 80
luxury condominiums that will feature all the amenities of the hotel. A total 600,000 s.f. of office space
will be constructed, with 400,000 s.f. to be developed in the $1M Phase II. RED lines up financing for the
project through lenders it has long-term relationships with. To spread risk the company also likes to JV on
these large projects, so maybe keep an eye out for other players to join the party. Although the site is
directly northwest of Granite Properties and Gables Residential’s $200M project, also featuring nearly
400,000 s.f. of office space and a 292-apartment tower, Bart is sure Akard Place will drive demand.
Anticipate construction in spring 2009 with a 20- to 24-month construction period.
Continued on Next Page
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Page 8 Crittenden Real Estate Developers™

Digging Dirt
Molina Healthcare joins the growing list of companies at the 12,000-acre Mesa del Sol development in
Albuquerque. Forest City Covington NM LLC, a JV between Forest City Enterprises and Covington NM
LLC, will develop the healthcare company’s latest 25,000-s.f. IT center. Expect the new Molina facility to
cost a total of $20M — the land and building accounts for $12M, equipment makes up $6M and salaries
account for the $2M balance. Area rents go for $18.50 to $20 NNN for office space. The new IT center is
being relocated from Long Beach, Calif., and will bring 15 to 20 jobs, adding to the existing 140 jobs at
the Molina Healthcare office in Albuquerque. Molina is the first healthcare-related company in this
MPC, but the developers intend to draw more healthcare companies to the area. Other target sectors
include renewable energy, technology, film, media, government and finance. The development aims to
add 450 jobs annually to the market.

The Pennsylvania Real Estate Investment Trust (PREIT) works on its second project in Chester
County in West Chester, Pa. Still in the early stages, the unnamed Wyeth property features roughly
30 acres of prime urban infill, currently in the process of rezoning. PREIT proposes a mixed-use project
for this urban market, given the demographics and characteristics of the region. Rough sketches include
300,000 s.f. of retail, 200,000 s.f. of office space, 600 housing units and a 150-room hotel. Looking to
achieve high-density levels, the project will feature small blocks and street grid plans. It’s possible the
company could push for green building for the rare brownfield redevelopment but nothing is finalized.

Extell Development Company with JV partners The Carlyle Group and RREEF Alternative
Investments bet on Manhattan’s Upper West Side with a mixed-use project that will include a hotel-style
rental building, for-sale condos and retail. Word on the street indicates that the project could touch the
$1B-mark. Still unnamed, the 23-story tower rental will feature 209 luxury units with plans to break
ground in Spring 2009, followed by a one-year buildout. The second tower, The Alden soars high at
38 stories and features a mix of luxury residences as well as 4,323 s.f. of retail space. Both towers are part
of the 52-acre Riverside South Development that includes commercial space and a 27-acre waterfront
park along the Hudson River. Extell and Carlyle secure a $613.6M loan from a consortium of nine banks
led by Deutsche Bank, at about 60% LTC, and a 12% mezzanine loan. Carlyle uses part of its $950M
investment fund Carlyle Realty Partners IV to leverage the balance.

The Real Estate Developers Team

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