G. Gage

American Tower and United South End Settlements Launch First U.S. Digital Community

Kyle Gustafson — Tue, 21 Nov 2023 19:02:02 +0000

Partnership between the REIT and Boston-based nonprofit fosters digital connectivity at New Hampshire sleepaway camp .

BXP’s The Hub on Causeway Reconnects Boston Community

pconnors@reit.com — Fri, 18 Nov 2022 15:10:23 +0000

BXP’s The Hub on Causeway Reconnects Boston Community pconnors@reit.com Nov. 18 2022

G. Gage

publications@nareit.com

G. Gage is a freelance writer and regular contributor to REIT magazine.

BXP’s The Hub on Causeway Reconnects Boston Community

Since its opening in 2019, The Hub on Causeway has become one of Boston’s fastest-growing neighborhoods and entertainment destinations thanks to its unique mix of a historical city backdrop and an expanding list of offerings for newcomers and long-time residents.

The Sky Lobby at 100 Causeway Street provides dramatic city views as well as indoor and outdoor gathering spaces for building clients and visitors. Photo courtesy of BXP.

A joint venture between BXP (NYSE: BXP) and Delaware North, it sits atop the northern gateway to the city of Boston at North Station—a 1.5 million square feet mixed-use development that adjoins the iconic TD Garden arena.

The $1.1 billion BXP development includes 100 Causeway Street, Boston’s first ‘TAMI’ tower designed specifically for tech clients and anchored by Verizon Communications. The complex also includes a 272-key citizenM hotel; a 440-unit luxury residential tower called Hub50House with Boston’s highest rooftop pool; the city’s largest supermarket; 18 eateries in the Hub Hall; entertainment venues and onsite parking.

The Hub bridges some of Boston’s oldest neighborhoods and the culture and history of its iconic sports teams, while finally realizing the full potential of the city’s main transportation corridor.

“This was a zone that was almost like a missing tooth between the famous Italian North End and the West End, a historic neighborhood that became a victim of failed urban renewal,” says Bryan Koop, BXP’s executive vice president for the Boston Region.

“We saw it as an opportunity to connect these neighborhoods and finally synergize them.”

Finding the Next Innovation Hub

View of Hub50House, the residential component of The Hub on Causeway, and 100 Causeway Street. Photo courtesy of BXP.

Other potential developers had looked at the underutilized Causeway Street site, which historically had been a ghost town on days without TD Garden events, and only envisioned a regional type of retail experience. BXP, meanwhile, had a broader vision.

“We believe that great space and place drives behavior,” says Koop, who more than a decade ago saw the potential in the Boston market for growth in life sciences and TAMI (technology, advertising, media, and information sectors.) Using the then-emerging Meatpacking District in New York as an example of an ideal neighborhood for attracting this workforce due to its neighborhood amenities and access to transportation, Koop and his team searched Boston for a similarly situated area that had the potential for comparable growth.

They found their ideal spot right on Causeway Street situated at the TD Garden, home to the Boston Celtics, Boston Bruins, and touring concert acts. In addition to being Boston’s largest indoor venue, the location was also a transportation crossroads at North Station, which connects 64% of public transit trains in Massachusetts.

For close to a decade, BXP partnered with the city’s Boston Planning & Development Agency (BPDA), formerly known as the Boston Redevelopment Authority (BRA) over the course of two different mayoral administrations, to make the project a reality.

“Both mayors were incredibly supportive of the project because they saw the potential for building a sustainable transportation hub property and putting density in a place where all the transportation was,” Koop says

They also worked with the Downtown North Association (DNA), a nonprofit coalition representing the business, institutional, professional, hospitality, and residential interests in the North Station area and the West End. The purpose of the Association is to “encourage and contribute to the continued economic, social, and physical revitalization and redevelopment of the Downtown North/ West End community as a whole.”

The new, larger entryway into TD Garden. Photo courtesy of BXP.

In 2018, BXP found its tech anchor when Verizon signed a 20-year lease to anchor the new tower at 100 Causeway St. with 440,000 square feet accommodating up to 3,000 employees of the telecommunications firm.

The tech tower and accompanying amenities also attracted Rapid7, a fast-growing cyber security company that provides solutions across cloud security, threat intelligence, vulnerability management, detection, and response. The company leased 147,000-square-feet of The Hub for its new headquarters.

“Our decision to make The Hub on Causeway our Rapid7 home allowed us to create incredible workspace for our colleagues in a truly dynamic location while also having a positive impact on an emerging Boston neighborhood,” says Corey Thomas, CEO of Rapid7.

BXP took their vision for serving the TAMI community further by creating Flex by BXP, a versatile office leasing scheme that provides clients with short-term, modular, plug-and- play space solutions in an open concept environment where work stations can accommodate different businesses.

“We don’t see Flex as a coworking space,” Koop says, “it’s a flexible work space that can be leased on a monthly or yearly basis so it’s a great shock absorber to our larger clients or an incubator for small tech start-ups. It’s proven to be incredibly valuable in this office space market, post pandemic.”

Creating a Vertical Village

A lounge at Hub50House. Photo courtesy of BXP.

Beginning in the late 1950s, the city began a controversial urban renewal program that would ultimately raze the West End neighborhood of Boston and in the process displace 20,000 people from the close-knit community. In developing The Hub on Causeway, BXP and their partners wanted to fill a hole left for decades that followed the demolishment of the historic West End while also respecting the current community’s needs. They worked with the West End Museum and its team to understand that important history.

Meanwhile, a variety of community benefits were provided as part of the development. BXP and its partners at Delaware North accelerated payments due for affordable hous - ing in order to assist in the development of The Beverly, an income-restricted residential development in the neighborhood. BXP partnered with the City of Boston and agreed to fund the investment before making the decision to move forward with the construction of Hub50House.

In designing The Hub, BXP included a Community Room in its East & West Podium area in order to provide meeting space for neighborhood groups and non-profits, like the local historic group and other community meetings. The room is fully-adaptable with audio visual equipment, mobile furniture, and plans for a local artist-designed mural inside.

Part of bridging two historic Boston neighborhoods, West End and the North End, included bringing in a basic amenity that had been missing from the neighborhood for decades. In 2019, The Hub opened the largest Star Market grocery store in Boston after years of community demand.

BXP worked with The Grocery Store Committee, also known as North End/West End/ Beacon Hill Super - market Committee, a group of neighbors and citizens who advocated for 20 years for an accessible, affordable grocery store in the food desert neighbor - hood. The committee worked tirelessly to bring a new supermarket into the area around the West End, North End, and Beacon Hill neighborhoods, but the spaces that were available never had the right square footage and layouts for a traditional market, as well as the space to accommodate shipment unloading.

Communal lounge space at Hub50House. Photo courtesy of BXP.

“This neighborhood, which was growing leaps and bounds in population and deserved the same thing that any residential community in the suburbs would have in Boston,” says Koop, who says he was inspired by the Grocery Store Committee’s dedication. “We went after this vision and made sure we got the best in Star Market, which is home grown originally out of Boston.

Using an innovative design that allows the market to have a small footprint in high traffic areas at street level where commuters are moving through North Station and fans are attending events at the TD Garden, the 60,000- plus square foot store utilizes underground space that is also accessible directly from the parking garage. The project took years of expert engineering designs to accommodate the unique space in The Hub complex and maximize the potential of the store.

The Grocery Store Committee embraced the partnership, welcoming the accessible design that better accommodates families who would want to live in the neighborhood, but previously would have found it challenging due to the lack of a basic necessity. To celebrate the partnership, the Grocery Committee sat in on the official signing of the lease by Star Market and BXP, and committee members were also invited to sign the lease themselves as a gesture of their years of advocacy for the community to bring about this project.

“This store wouldn’t exist if it weren’t for the Grocery Committee,” Koop says.

Activating Entertainment

Koop recalls that one of the initial draws of the location was the rich history surrounding the TD Garden and the city’s sports teams. The original Boston Garden was built in 1928 and demolished in 1998, after the new venue was built next door, but for 20 years the original land sat vacant despite all of its potential.

BXP chose global architecture firm Gensler to design the mixed-use development comprising the office tower, residential tower, and retail gallery connecting North Station and TD Garden.

The lobby at 100 Causeway Street. Photo courtesy of BXP.

They utilized sustainable, modern design elements with steel and glass but also made sure the architecture helped connect the neighborhood with its industrial past.

“We wanted to create the most sustainable three acres in Boston,” Koop says, with components such as the office tower LEED-certified platinum. “Its carbon footprint is also fantastic because of this transportation hub.”

TD Garden had long lacked a central entrance; instead, patrons and commuters were forced to enter and exit through smaller traditional doorways that often led to confusing long lines and pedestrian back-ups. The Hub now welcomes patrons with a larger grand entryway that allows easier access to transportation and the TD Garden. Visitors can easily visualize the new offerings like Hub Hall, a food and drink hall with 18 different vendors and spend time in the neighborhood outside of Garden events.

BXP partnered with local entertainment guru and Boston native, Ed Kane, to further activate the entertainment possibilities of the area. Kane is principal of Big Night Entertainment, a Boston-based full service, hospitality and entertainment company with 23 locations ranging from nightclubs, restaurants, and music halls, to bowling alleys.

In 2019, Kane opened Big Night Live, a 2000-person music hall and event space with Tequila Cocina, a restaurant concept by celebrity chef Guy Fieri. The venue employs more than 200 people and hosts roughly 250 shows a year, many of them sold-out, further bringing business to the new and surrounding retail. Kane says the additional convenience of having a boutique hotel like citizenM Hotel onsite (located on top of North Station) helps accommodate the top talent playing at Big Night Live, as well as the fans coming to town for the shows

“BXP was so fantastic to work with—they’re thoughtful and creative. You always get the sense that it is a true partnership,” Kane says, “so in this case we worked together to think about what would bring the best value to the neighborhood.”

For Kane, who grew up in the Dorchester area of Boston and attended sports events at the original Boston Garden, The Hub is a homecoming for the neighborhood. Kane sees The Hub as more than just a place for visitors coming for the sporting events.

“Finally, this is a neighborhood again. This is a place to go. The Hub brought everything together,” says Kane.

According to Koop, that’s one of the reasons The Hub is a perfect example of BXP’s broader approach to development. Thoughtful placemaking benefits both clients and communities.

“The business we’re in is not real estate,” Koop says. “We are in the business of creating great spaces with the best amenities and connectivity that power progress for our clients.

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JBG SMITH, Gallaudet University Partner to Align Historic Campus More Closely with D.C. Neighborhood

pconnors@reit.com — Fri, 29 Jul 2022 18:44:15 +0000

JBG SMITH, Gallaudet University Partner to Align Historic Campus More Closely with D.C. Neighborhood pconnors@reit.com Jul. 29 2022

G. Gage

publications@nareit.com

G. Gage is a freelance writer and regular contributor to REIT magazine.

Breaking New Ground

JBG SMITH and Gallaudet University’s Sixth Street Development project seeks to reorient a unique educational institution.

A rendering of Tapscott Arcade. Photo courtesy of JBG SMITH.

An ongoing partnership between JBG SMITH (NYSE: JBGS) and Gallaudet University in Washington, D.C. aims to enhance and improve the unique campus environment of the nation’s leading educational institution for the deaf and hard of hearing, while also bringing it into closer alignment with its surrounding community.

In January 2022, Gallaudet, a private federally chartered research university, and JBG SMITH received final zoning approvals for the first phase of their collaborative Sixth Street Development project. The multi-phase project will develop a series of properties on the western edge of the university’s NoMa (North of Massachusetts Avenue) campus, creating mixed-use development and broadening Gallaudet’s interaction with the surrounding Washington, D.C. community.

Phase one includes three buildings totaling approximately 760,000 square feet of multifamily residential, 60,000 square feet of retail, and 17,000 square feet of university spaces.

“Gallaudet University has been around for 150 years, so we think in terms of centuries,” says Sam Swiller, director of strategic real estate planning, business development, and external relations for Gallaudet. “In the last two decades the university has become much more ambitious about how it wanted to face the world,” he says.

The arrival of the NoMa-Gallaudet metro station (thencalled New York Ave–Florida Ave– Gallaudet) in 2004 spurred a wave of new development and opportunity in the area. Historically, Gallaudet had been physically and in many ways socially—isolated from the surrounding area, though it had always played a vital role in the city’s community. The university decided that this was the right time to take agency over its land holdings and future development in order to realize its goal of increasing student interaction with the surrounding community, which includes the popular Union Market specialty food hall.

Beginning in 2014, it partnered with JBG SMITH. The Sixth Street Development includes four parcels of land and three phases, each with unique designs and approaches to achieving their joint goals.

“This project really allows Gallaudet to engage with this burgeoning Union Market neighborhood on its own terms, striking a balance with engagement, and preserving its unique campus environment,” says Robbie Saclarides, vice president of development at JBG SMITH.

JBG SMITH is also delivering approximately 150 affordable housing units across the project. The majority will be offered at the 50% MFI (median family income) level, the deepest level of affordability contemplated in Washington, D.C.’s Inclusionary Zoning Program.

Historic Roots

What would become Gallaudet University was established in 1864 when President Abraham Lincoln signed a bill into law after Congress authorized the institution to confer college degrees.

During its first commencement in 1869, diplomas were signed by President Ulysses S. Grant. Current presiding U.S. presidents continue the practice to this day. From its inception, Gallaudet has focused on advances in education of deaf and hard of hearing students and advocating for deaf rights worldwide.

A rendering of planned residential and retail space. Photo courtesy of JBG SMITH.

Over the last 150 years, Gallaudet has evolved, becoming the leading institution for the education of deaf and hard of hearing, offering 40 majors for undergraduate degrees. The university also admits a small number of hearing, degree-seeking students. Graduate programs are open to deaf, hard of hearing, and hearing students. The university has roughly 22,000 alumni around the world.

“It’s a special place,” says Swiller, who identifies as hard of hearing but says he hadn’t learned American Sign Language (ASL) prior to first visiting the campus in 2009. “It was an eye-opening experience,” he recalls. When he first arrived at Gallaudet, Swiller taught classes, bringing his professional experience in real estate private equity to students before taking up his current role at the university.

Gallaudet employs ASL and written English for instruction. The campus represents the largest collection of ASL speakers in the world, so preserving and advancing its mission presented a unique set of challenges and opportunities for development.

Some of these include transitioning from a more pastoral campus to a more urban one, consolidating the university’s footprint to increase student interactions, orienting campus around a central heart, and building bridges between the campus and the larger community.

According to Swiller, the university faced a pivotal question: “How do we model a path for students to face the outside world and provide them with the best tools to meet the world on their terms?” To achieve its goals, the university created a real estate foundation to oversee its real estate activity and has conducted years of research to help answer this question.

Finding Partnership

The university also wanted to generate a stream of reliable cash to put to work in enhancing amenities for students, faculty, and staff, but selecting a developer presented its own risks.

“We were deeply concerned that whatever developer we brought on would be attentive to the needs of our school that focuses on the deaf and hard of hearing, which historically is a marginalized population,” Swiller says.

In 2012, Gallaudet launched an extensive request for proposal (RFP) process. Choosing from roughly 40 candidates, Gallaudet selected then-JBG Companies and finalized agreements in 2014. According to Swiller, JBG appealed to the university because it was a private developer with a great track record and financial capabilities, and it showed a deep understanding and respect for Gallaudet’s history and legacy.

A rendering of planned residential and retail space. Photo courtesy of JBG SMITH.

JBG SMITH becoming a REIT in 2017 only added to their appeal, Swiller says, because they are long-term investors.

“As a REIT, we’re a long term holder which underpins our decision-making and I think Gallaudet is similarly a long term thinker, having been here since 1864,” Saclarides says. Sharing long-term visions helped when plans for Sixth Street were delayed for several years by a local lawsuit that was ultimately dismissed. The Sixth Street Development also fits well within JBG SMITH’s portfolio, which targets high-growth, transit-oriented markets.

“It’s been a lengthy, collaborative process that helped to establish the strong foundation of trust and understanding between the two parties,” Saclarides notes. “We’re working to get our first shovels in the ground, and we’ve been together every step of the way,” she adds.

The project has also involved collaboration with multiple public and private entities including district officials from the Department of Transportation, D.C. Water, D.C. Zoning Commission, as well as the community organizations such as the local Advisory Neighborhood Commission.

Gallaudet students and staff were also involved in identifying and selecting developers and throughout the process.

Unique Design

Design and architecture have provided another unique space for collaboration between JBG SMITH and Gallaudet.

The Sixth Street Project will employ DeafSpace Guidelines, more than 150 distinct architectural design elements developed by the DeafSpace Project, a collaboration between Gallaudet and architect Hansel Bauman. The guidelines address key touch points between deaf experiences and the built environment: space and proximity, sensory reach, mobility and proximity, light and color, and acoustics.

DeafSpace design also focuses on community building, visual language, and the promotion of personal safety and well-being. Built on long-held cultural traditions, Gallaudet research, and the latest architectural developments, DeafSpace accounts for challenges like poor lighting conditions—such as glare and backlighting—that interrupt visual communication.

Good to Know

The Sixth Street Development includes four parcels of land and three phases.

JBGS and Gallaudet received final zoning approvals for phase one in January 2022.

The project will develop a series of properties on the western edge of the university’s NoMa (North of Massachusetts Avenue) campus.

Over the last 150 years, Gallaudet has become the leading institution for the education of the deaf and hard of hearing.

“It’s about creating an environment that removes as much friction as possible for people that are visually communicative and those that are deaf-blind,” Swiller says. Basic examples include using techniques to minimize glare in rooms with direct sunlight, so it’s easier to see someone signing; knowing what design colors create the best contrast to the widest range of skin tones to allow for more visible signing, and creating circular seating areas to increase signing visibility and exchange. “DeafSpace design lends itself to good overall design,” Swiller says.

Gallaudet and JBG SMITH selected Seattle-based architects Olson Kundig for parcel two, which will abut the campus directly and the designed structures will gradually step down in scale as they approach the university to organically transition between environments. New York-based Morris Adjmi Architects was selected to design parcel three.

JBG SMITH and Gallaudet also partnered with landscape designers Future Green Studio on master planning for its open spaces and streetscapes to enhance comfort and safety for the deaf community.

“The public realm around our buildings will have the highest level of interaction with the deaf community and it was really important for us to deliver a design that supports ASL communication and the deaf experience,” Saclarides says. They’ve also enlisted deaf-owned, D.C.- based firm Copper & Water as consultants to peer review designs for Sixth Street Development.

Saclarides also notes the importance of creating designs with an understanding of edge conditions—zones of transition or the interface characteristics of a public space with its adjacent land uses and structures.

Their plans will deliver contextually-designed buildings that bridge the industrial warehouse buildings of the Union Market district and Gallaudet’s Victorian campus architecture with its bucolic central green, the latter designed by famed landscape architect Frederick Law Olmsted.

Renderings of the Tapscott Arcade. Photo courtesy of JBG SMITH.

“It’s about working with the dichotomy of these contexts, historic in their own right, but coming from different roots,” Saclarides says, which aligns with the overarching principles for the Union Market district’s redevelopment. Striking a balance between old and new, stakeholders in Union Market district’s redevelopment plans have aimed to preserve the neighborhood character and traditional wholesale use of the area while fostering infusion of new mixed use.

Building Bridges

Neighborhood development through the Union Market district and Sixth Street Development provides new dining, recreation, and employment opportunities for students and neighbors.

Plans for phase two include 625,000 square feet of multifamily residential and 50,000 square feet of retail. By monetizing these sites via ground leases, the university gains an influx of funding to apply to this mission. Other tangible community benefits include infrastructure improvements, protected bike lanes that connect to the wider Washington, D.C. network, and the creation of a more pedestrian-friendly Sixth Street area.

For the Gallaudet community, these benefits are more than structural. “We’re focusing on bringing more of our students and administrative activity closer to the historic district of the campus, which aligns with university President Roberta Cordano’s vision for preserving and nurturing what’s called ASL vibrancy—the idea that the more people signing around each other, the more the usage of the language is enriched,” Swiller says.

Gallaudet hopes to share that vibrancy with the surrounding community, while also protecting it.

“One of our goals is to build bridges with the community,” Swiller says. “This is an opportunity for the university to reorient itself and become more outward focused and to create places where that can happen.”

Enter Creativity Way, the tentative name for the planned pedestrian, linear park that will form the university’s new “front porch.” When completed, Creativity Way will feature a cultural center and ‘knowledge studios’ to showcase university-wide research, scholarship, creative activity, and innovation. It will also provide an unparalleled opportunity for the broader Washington, D.C. community and beyond to learn from the deaf community and about deaf culture, and vice versa.

Renderings of the Tapscott Driveway. Photo courtesy of JBG SMITH.

“It’s an opportunity for us to welcome the world and the community to our campus in a way that our students can feel safe and thrive,” Swiller says.

“This is one of the only places in the world that has dominant ASL interaction, so that needs to be respected,” says Saclarides.

“Creativity Way is striking a delicate balance of engaging with the community but also protecting their own very unique environment,” she says. JBG SMITH’s team aims for that exchange of knowledge and experience to go even further. The company employs interns from the Gallaudet community, helping to give students real-world experience while exposing existing JBG SMITH employees to the deaf community and a second language in ASL, hoping to inspire further opportunities in the broader community.

“It is very hard for deaf or hard of hearing individuals to get fair opportunities in their career and life,” Swiller says. “We’re hoping that this project will create a place where students become their own advocates and really move forward through the world empowered.”

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Vornado's Vision for the Future of New York's PENN District

pconnors@reit.com — Tue, 22 Mar 2022 12:34:06 +0000

Vornado's Vision for the Future of New York's PENN District pconnors@reit.com Mar. 22 2022

G. Gage

publications@nareit.com

G. Gage is a freelance writer and regular contributor to REIT magazine.

Vornado is creating the neighborhood of the future in New York’s PENN District.

Vornado's Vision

Vornado is creating the neighborhood of the future in New York’s PENN District.

The PENN 1 lobby stairs connect the main entrance to tenant amenities on levels two and three. Photo courtesy of Vornado Realty Trust.

Just over a year after the grand opening of New York City’s Moynihan Train Hall, work to transform midtown Manhattan’s PENN District and reshape the city’s post-pandemic office culture, spearheaded by Vornado Realty Trust (NYSE: VNO), is continuing apace.

The $1.6 billion Moynihan Train Hall is the transportation cornerstone of New York’s PENN District, anchored by Vornado’s 10 million square feet of commercial property. The project has transformed the former mail-sorting area of the landmark James A. Farley Post Office Building into a modern transportation hub for rail travel.

A mixture of glass and steel, modern and historic, Moynihan is the new gateway for Amtrak and Long Island Rail Road passengers and contains an abundance of curated dining and retail options. Many New Yorkers and travelers are only now experiencing the award-winning design and thoughtful amenities as they return to offices and resume business travel.

“Because of the pandemic, most New Yorkers hadn’t been there yet,” says Dan Biederman, president of the 34th Street Partnership, a not-for-profit, private management company organized as a business improvement district focusing on the success of the neighborhood surrounding Penn Station. “As they discover it, it’s becoming a game changer for the west side of the 34th Street district.

According to Biederman, Moynihan is only just the beginning and a testament of what is to come. “Moynihan is a beautifully done station and the general public is finally getting the chance to appreciate it,” he says. In January, Amtrak opened a full-service bar in its new Metropolitan Lounge, featuring seasonal beer selections, wine, cocktails, and hot food as part of the ongoing expansion of amenities. Vornado also opened the Moynihan Food Hall in the concourse of the train station. Glen Weiss, Vornado’s EVP of office leasing and co-head of real estate, says “we are creating a new vibrancy in this business community—mixing new with old in authentic New York style.

Good to Know

Moynihan Train Hall is named after Daniel Patrick Moynihan, the U.S. senator who originally championed the plan.
Vornado has committed more than $2.4 billion to the PENN District; federal, state, and local governments have committed more than $3 billion.
Vornado has introduced more than 200,000 square feet of tenant amenities on the PENN campus.
Completion of PENN 1 is slated for this spring; PENN 2 aims to wrap up in the second half of 2023.

Public-Private Partners

Vornado and the State of New York have invested heavily in the future of New York City. Dynamic new buildings will be integrated with updated iconic existing structures, some of which are more than 40 years old.

With a focus on an amenity-enriched office culture, the new PENN District aims to attract and retain top talent, leading a post-pandemic reemergence of businesses—large and small—in the Penn Station vicinity. Vornado’s team believes these critical investments in transportation and streetscapes will shape the future of what it means to go to work in Manhattan, arguably the center of global commerce.

“Many businesses who have been in this district for decades will be intertwined in the PENN District with new companies, and together can help one another flourish and invariably emerge from the pandemic stronger moving forward,” Weiss says.

Vornado’s history in the district dates back to 1997, Weiss explains. Thanks in part to its leadership’s forward-thinking vision and flexibility as a REIT, Vornado has invested in and accumulated key real estate in the vicinity of Penn Station over time, allowing it to now realize the full potential of the neighborhood. Weiss has witnessed this evolution first-hand, having worked in the district for decades.

Vornado’s predecessor in the neighborhood, the Mendik Company, which Vornado acquired in 1997, started accumulating properties in the PENN District in the 1980s. “We knew back then that this was the bull’s eye of New York, with transportation like no other commercial office district in the country,” Weiss says.

Over the next three decades the company continued to collect properties, gradually becoming the dominant owner in the neighborhood and enjoying consistently strong leasing thanks to the location.

PENN 2, located above Penn Station, is undergoing an extensive redevelopment. Photo courtesy of Vornado Realty Trust.

According to Weiss, the area has historically attracted two tenant bases: commuters hailing from New York’s five boroughs, Long Island and New Jersey; and large corporations dependent on Amtrak train lines for movement of its employees along the Eastern Seaboard. As the area developed, Vornado actively sought to improve the district and surrounding neighborhood to attract a broader base of tenants from Manhattan’s other strategic office corridors.

More Liveable City

Vornado’s consistent aim on the advancement and acquisition of new properties perfectly positioned the REIT when it came time to make a bold investment and partner with the State of New York.

“Five years ago, we could see the time was right to invest significant capital to connect with the government in terms of a public-private partnership and get the PENN District to the next level,” Weiss says. With the Moynihan Train Hall and the new entrance into the Long Island Rail Road main concourse at Penn Station at the heart of this partnership, Vornado has committed $2.4 billion and federal, state, and local governments more than $3 billion.

“Vornado has played a major role in this very intricate public-private deal,” Biederman says. “It has survived the change of governors very well and the new governor is totally on board,” he says, referring to New York Governor Kathy Hochul, who recently took office and recommitted to the revitalization of Penn Station and the surrounding area.

“This plan puts New Yorkers first, delivering the rider-focused transit experience and great neighborhood they deserve,” Hochul said in a statement prior to taking office. “Investing in Penn Station means investing in New York’s future as we recover from COVID and build a more sustainable, livable city.”

Formerly known as Empire Station Complex Civic and Land Use Improvement Project, the updated Pennsylvania Station Area Civic and Land Use Improvement Project includes recommendations from private and public entities, such as the Community Advisory Committee Working Group (CACWG), which worked in consultation with Empire State Development, the Metropolitan Transportation Authority, Amtrak, and NJ Transit.

Five Years ago, we could see the time was right to invest significant capital to connect with the government in terms of a public-private partnership and get the PENN District to the next level.

Glen Weiss, Vornado's EVP of office leasing and co-head of real estate

Attracting Tenants

Biederman believes that Vornado’s thoughtful approach is paying off. Emergence of the tech industry and proximity to more recent attractions like the High Line and Hudson Yards have also helped make the PENN District’s and Vornado’s long-term investment even more appealing.

“Everything looks fresh and new here. It is obviously good for New York, it attracts new tenants that lead to more tax dollars for the city,” he says. As a business improvement district, the 34th Street Partnership supplements city services, tackling issues with litter, crime, graffiti, care of parks, tourist services, and neighborhood improvement.

Biederman says these additional services are particularly important at this time. “Right now there are concerns about many American cities going in the wrong direction and we are remedying that with a very sophisticated security force.”

Part of Vornado’s master plan for the PENN District includes updating iconic New York properties, adapting them to new industries, enhancing their sustainability, and strengthening the overall character of the neighborhood.

The Farley Building, formerly the city’s main post office branch, has retained its iconic Beaux-Arts architecture with Corinthian columns and classical steps, but has been revamped into a modern office space. The Farley Building will soon be the home to Facebook, who signed a lease for all 730,000 square feet of the office in August 2020— a major bet on Manhattan’s resurgence after COVID-19.

PENN 2 will offer flexible tenant spaces for working or socializing and private events, including a 280-person town hall. Photo courtesy of Vornado Realty Trust.

“Facebook first joined New York’s vibrant business and tech community in 2007. Since that time, we’ve continuously grown and expanded our presence throughout the city. The Farley Building, in the PENN District, will further anchor our New York footprint and create a dedicated hub for our tech and engineering teams. We look forward to being a part of this iconic New York City landmark’s future for years to come,” says Nick Raby, director of real estate and facilities, North America, at Meta, Facebook’s parent company.

Along with Facebook, the PENN District is attracting other top companies looking to bring their workforce back to the office and setting the tone for post-pandemic commerce. Apple Inc. signed a lease for a 330,000 square foot space at Vornado’s neighboring PENN 11
in 2020.

In another vote of confidence, Madison Square Garden Entertainment inked a 20-year lease in November 2021 for a 428,000 square feet headquarters at Vornado’s PENN 2, the 31-story building situated atop the current Penn Station.

“Vornado has been a great partner and we are pleased to have reached this agreement, which keeps our corporate headquarters at PENN 2—in the heart of the city next to our Madison Square Garden Arena,” James Dolan, executive chairman and CEO of MSG Entertainment, said at the time of the announcement.

In April 2021, work began on the redesign by MdeAS Architects and recladding of the mid-century modern structure, replacing the dark glass exterior with a modern glass curtain wall. PENN 2 will connect to another key district component—PENN 1—making the two buildings a 4.4 million square foot campus including a 280-person town hall for tenant presentations and events.

PENN 2’s redevelopment also creates 430 feet of new frontage along Seventh Avenue, as well as a second-level café adjacent to the office lobby and an 8,000-square-foot restaurant situated at a revamped 33rd Street pedestrian plaza, known as Plaza 33.

Amenity-Driven Work Culture

PENN 1, the building that occupies the area between 33rd and 34th Streets and 7th and 8th Avenues, is another renovation nearing completion mixing old and new New York.

The existing, 1970s Class A 55-story tower with more than 2.5 million square feet is undergoing a major redevelopment. As of July 2021, PENN 1 has a new North Lobby with high ceilings, a landscaped plaza, and a digitally-enhanced main “social” staircase connecting tenants and amenities.

Vornado introduced more than 200,000 square feet of tenant amenities, launching its new WorkLife amenity program—a hospitality-driven, work-first environment across the PENN campus. With a 35,000 square foot wellness and fitness center, multiple work lounge areas, full service-dining, bar, and grab-go food options, WorkLife creates an ecosystem that allows tenants to focus “on both work and self-care.”

Gone are the days of sitting in a cubicle for 10 hours, Weiss says. Coffee on hand, comfortable seating, lunch to-go, and support throughout the workday will allow employees to work in a “hospitality-centric office, closer to a hotel,” Weiss says. “It’s a terrific environment for the employee when they come into the office every day,” he adds.

PENN 2’s new entrance will be located off of the newly built tree-lined 33rd Street plaza. Photo courtesy of Vornado Realty Trust.

Another Vornado first: access to all of the components of these office amenities via an accompanying app— Live.Work.Do. The phone application allows tenants from the PENN campus to access the on-site offerings, with everything from dining perks, entertainment, food and beverage ordering, safety alerts, and wellness tips with daily spotlights like #TrainerTipTuesdays and #WellnessWednesdays. The app will also expand and adapt as the PENN District grows and additional phases are completed.

According to Weiss, the ongoing COVID-19 pandemic and prevalence of work-from-home across industries have only accelerated the shift towards amenity-driven office culture.

“We believe when people come back to the office, they want to come into a very comfortable setting which provides everything in their office building that they otherwise were getting at home,” Weiss says. Vornado has also placed an emphasis on outdoor spaces throughout the district.

District for All

Vornado currently owns about 10 million square feet of property in the PENN District and has extensive, continually evolving plans for its next steps. “Everything is happening in parallel—improving the transportation hub, renovating buildings, new construction, upgrades to the streetscape,” Weiss says. “We are collaborating with the city, state, railroads, and local community to create the neighborhood of the future.”

Vornado will also continue the renovation and upgrading of all existing assets in the PENN District. Completion of PENN 1 is slated for spring of this year, and PENN 2 aims to wrap up in the second half of 2023.

For Vornado and its investors, the growth proposition remains limitless. Its architects Foster + Partners recently revealed updated designs for PENN 15, the tallest of its five proposed new office towers at 1,200 feet. The 2.7 million square foot “supertall” tower will feature terraces throughout the tower to maximize light and air and its unique design will allow for flexible office configurations. Other plans for the district include more than 10 acres of public plazas and sidewalks, as well as more than one million square feet of new retail.

“Personally, it is truly satisfying to still be here 30 years later to see all of this happening,” says Weiss, who likens each PENN District component to “chapters” of a story Vornado is building over time. “When the story is complete, tenants and stakeholders will see the quality of the future ecosystem, and the entire city will continue to reap the benefits,” he says.

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Bridging Pittsburgh's Historic Past with an Innovative Future

rich@richgarcia.com — Wed, 26 Jan 2022 16:36:05 +0000

Bridging Pittsburgh's Historic Past with an Innovative Future rich@richgarcia.com Jan. 26 2022

G. Gage

publications@nareit.com

G. Gage is a freelance writer and regular contributor to REIT magazine.

Forging Ahead

The Assembly bridges Pittsburgh's historic past with its future as an innovation hub.

The site of a former Ford Motor Co. Model T assembly plant in Pittsburgh is now a center for biomedical research.

The site of a former Ford Motor Co. Model T assembly plant in Pittsburgh is undergoing a major adaptive reuse that will result in a new mixed-use, life science development that marks the city's broader evolution into a national hub of innovation and technology.

The Assembly, as the site is now known, marks one of the latest collaborations between developer Wexford Science + Technology, LLC and its strategic partner Ventas, Inc. (NYSE: VTR), as part of a pipeline agreement launched by the two companies in 2017.

For Ventas CEO Debra Cafaro, The Assembly is a particularly meaningful project. "I am so excited Ventas owns this remarkable landmark in my hometown. Pittsburgh is a city that, like The Assembly, knows how to come back strong after tough times. A historic landmark that our partner Wexford meticulously revived and repurposed beyond its original grandeur, The Assembly is ready for University of Pittsburgh (Pitt) and University of Pittsburgh Medical Center (UPMC) researchers to extend their rich legacy of medical discovery," she says.

Ventas owns 10 million square feet of life science-related real estate and is one of the largest holders in the U.S. market, according to Tim Sanders, senior investment officer at Ventas. The REIT currently has relationships with more than 17 universities and The Assembly is another strategic match. "This is a major part of our growth plan," he says.

"We were early adopters of life science markets with our partnership with Wexford. We made some strategic investments and we're starting to see many of those early decisions come to fruition because the market is hot right now," Sanders says.

Good to Know

■ Ventas owns 10 million square feet of life science-related real estate in the U.S. and has relationships with more than 17 universities
■ The Assembly was built in 1915 by Ford Motor Co. as a one-stop-shop for the Model T
■ The original eight-story main building contained the assembly areas and a vehicle showroom. Original features, including the crane shed, have been salvaged and repurposed
■ 14’6″ floor-to-floor height allows for ample natural light in the new work spaces; conferencing facilities and an auditorium offer 250-plus seat capacity

Significant Strides

Wexford, a developer specializing in university-anchored "Knowledge Communities," together with partners Ventas, Bank of America, ZGF Architects, and Turner Construction, is transforming the original 250,000 square foot building and an accompanying 105,000 square foot addition into laboratory and office space.

Located in the Bloomfield-Shadyside neighborhood of Pittsburgh, the project stems from collaboration between Wexford and Pitt — the latter looking to reach a new level of medical research collaboration and discovery.

"We understand that progress never comes from standing still," says Mary Beth McGrew, vice chancellor for planning, design, and real estate at Pitt.

"This project will make significant strides in the future of medical research, while providing jobs and generating economic growth in the region."

In November 2021, Turner Construction completed the core and shell for the renovation of the historic building, the centerpiece of the project's first phase of development. Engaged in active leasing, The Assembly will soon welcome its first researchers in advance of an anticipated Spring 2022 public opening. In addition to lab space, it will feature in-building parking with a secured bicycle room and shower facilities; gathering and event spaces; conferencing facilities; a 250-plus seat capacity auditorium; and a restaurant and café.

The project will both preserve a tangible piece of Pittsburgh's legacy and expand horizons for its leading educational institutions. Bordering multiple Pittsburgh neighborhoods, The Assembly will also serve as a bridge between Pittsburgh's East End and the city's new Innovation District

"The Assembly is Pittsburgh's first specialized innovation development coming online as part of the new Innovation District effort," says Sean Luther, executive director of the Pittsburgh Innovation District, the nonprofit leading development advocacy and partnerships in the city.

"The Innovation District is a framework that unites Pittsburgh's globally leading innovation anchors — Pitt, Carnegie Mellon University (CMU) and UPMC — with dynamic private partners like Wexford," Luther says. The initiative is viewed as a platform to better unite the city's talent, research, technology, and capital in new and exciting ways to keep propelling Pittsburgh forward.

'From Steel to Start-ups'

Beginning in the 1870s and spanning the better part of a century, Pittsburgh played a pivotal role in U.S. industrialization and steel production, at one point producing half of the country's steel output. Built in 1915 by the Ford Motor Co. and designed by famed architect John Graham, the Ford Motor Co. Assembly Plant combined the forces of Pittsburgh steel production with Ford's pioneering mass production to create a one-stop-shop for Model Ts.

The site of what is now the Assembly used to be a Ford Model T assembly plant and showroom.

The plant featured an eight-story main building containing the assembly areas and a vehicle showroom. A six-story crane shed was used to hoist parts unloaded from the adjacent Pennsylvania Railroad tracks to the assembly level. In 2018, the Ford Motor Plant was added to the National Register of Historic Places, solidifying its contributions to Pittsburgh and U.S. architectural history.

"The Assembly's purpose, history, and transformation are unique to Pittsburgh, a city that has continuously reinvented itself through innovation," McGrew says. Both the university and Wexford believed that legacy was worth preserving.

"It's a really special opportunity to honor the legacy of what was in Pittsburgh at that time. And obviously, it's also a really sustainable opportunity to reset, reuse, and to have positive sustainable investment as well," says John Grady, Wexford's senior vice president for the northeast region.

Adaptive reuse is not without its challenges, however. Wexford tackled environmental issues and a total clearing out of the building's massive interior after years of neglect. "It has entailed scraping out a legacy of vacancy that was clouding people's vision of what the building could become," Grady says.

Wexford has had previous experience renovating and repurposing historic buildings in different communities, such as a former tobacco manufacturing facility for Wake Forest Baptist Medical Center in North Carolina and an old power station at South Street Landing in Providence for its collaboration with Ventas, the University of Rhode Island, Rhode Island College, and Brown University.

Once seen as being at the forefront for innovation and production, the unparalleled building infrastructure has lent itself to cutting-edge lab space design. The ceiling heights, the floor loading capacity, and the ability to install HVAC infrastructure throughout the building all made the transition smoother. "The bones of the building are actually really well-suited for modern laboratories," Grady says.

The designers also have salvaged unique features like the original crane shed — the area where vertical transportation of pieces occurred for assembly lines — which was restored and will be repurposed to serve as a meeting and gathering space for the building and the community, according to Grady. Facilities like The Assembly, that are built for commercialization innovation, actually increase public understanding of the technologies themselves, as well as the broad spectrum of careers available and the ways that an industry can drive a community."

Aligning Goals

While the rich history and architecture of the Ford Motor Co. Assembly Plant made it an ideal vehicle for redevelopment, it was not the main catalyst for The Assembly.

"For us at Wexford, it really starts with the partnership," Grady says. "We spent significant time getting to know the University of Pittsburgh, to understand the chancellor and senior leadership's objectives around growing its innovation portfolio," he says.

According to McGrew, the university's leadership hopes to "achieve a new level of medical research collaboration, knowledge-sharing, and discoveries through the use of open lab and shared meeting spaces, in addition to having a positive economic impact in our local communities and region." These goals aligned perfectly with Wexford's well-established model of partnering with universities, academic medical centers, and research institutions to develop innovative, mixed-use communities in urban settings.

As for Ventas, "the Pittsburgh Innovation District checks a lot of boxes for us," Sanders says. These boxes include: a robust science and research community fueled by two top-tier research universities with Pitt and Carnegie Mellon, a desirable cost of living, a pipeline of potential employees, proximity to public transportation, and the potential for commercial tenants to boost funds for community initiatives.

The former "crane shed" of the Ford assembly plant will become a central hub for Pittsburgh's life science community.

The Assembly is accessible and positioned along the MLK Jr. East Busway and the upcoming Bus Rapid Transit (BRT) system that will streamline commutes for buses from downtown Pittsburgh to the city's eastern neighborhoods. It is also in the vicinity of the University of Pittsburgh Hillman Cancer Center and Shadyside Hospital and a mile from the Pitt campus.

The revival of Pittsburgh with The Assembly is personal for Sanders, who was also born and raised in the city. "I'm a Pittsburgh native so the quality of jobs and opportunities we provide to local residents is meaningful to me," he explains.

"Oftentimes in large cities with active development and gentrification, locals can miss out on the direct benefits, but that's not the case with life sciences communities that create ancillary jobs and opportunities," Sanders adds. As a mixed-use development in a new research community, The Assembly will also create jobs and entrepreneurial opportunities not requiring four-year degrees— from small businesses such as restaurants and caterers for events, as well as lab assistants and building services.

Mark Anthony Thomas, president of the Pittsburgh Regional Alliance, the region's leading business growth organization and an affiliate of the Allegheny Conference on Community Development, also views the community opportunities stemming from life science developments as far-reaching, beyond direct research initiatives. "Facilities like The Assembly, that are built for commercialization innovation, actually increase public understanding of the technologies Community Benefits The Assembly is expected to create opportunities for those historically disconnected from the city's innovation economy.Nareit: Real estate working for you | 41 themselves, as well as the broad spectrum of careers available and the ways that an industry can drive a community," he says.

Thomas believes the greater Pittsburgh community has recognized the potential of The Assembly and has widely supported this type of growth. "There hasn't been the type of friction that a more contested site can prompt because the community has seen that it will help bridge the universities and hospital systems further," he says.

"Wexford's investments also create a critically important platform to intentionally create new opportunities for those in Pittsburgh who have been historically disconnected from Pittsburgh's innovation economy," Luther adds.

Strengthening Life Science Ecosystems

The ongoing COVID-19 pandemic has increased investment in life science infrastructure and highlighted the need for laboratory space globally — and in Pittsburgh specifically.

"The tight geography and unique topography in the Pittsburgh Innovation District limited the availability of top-quality lab and innovation facilities in Pittsburgh," Luther says. "The Assembly keeps Pittsburgh competitive with its global competition and accelerates our unique approach to life science innovation that can solve the world's toughest challenges," he adds.

Grady notes that the pandemic "has raised the awareness of the importance of investing in modern healthcare, research, and commercialization, particularly around immunotherapies and viruses."

Both the Innovation District and the Pittsburgh Regional Alliance will continue to work with Wexford to ensure The Assembly creates jobs, workforce development strategies, and community benefits well beyond the academic and innovation systems. "We are in the early stages of this new innovation hub, and these types of projects are proof points for Pittsburgh and developers looking to invest," Thomas says.

"We are excited about the possibilities awaiting us in the future of medicine through the use of this historic facility," McGrew adds.

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Kilroy Oyster Point Creates a New Life Science Hub in South San Francisco

rich@richgarcia.com — Tue, 16 Nov 2021 04:01:52 +0000

Kilroy Oyster Point Creates a New Life Science Hub in South San Francisco rich@richgarcia.com Nov. 15 2021

G. Gage

publications@nareit.com

G. Gage is a freelance writer and regular contributor to REIT magazine.

Kilroy Realty Corp. is leading the development of Oyster Point, a life science hub that will bring numerous work and life amenities to South San Francisco.

On Point: Kilroy Oyster Point

Kilroy Realty Corp. is leading the development of Oyster Point, a life science hub that will bring numerous work and life amenities to South San Francisco.

An aerial rendering of the completed Kilroy Oyster Point. Courtesy of Kilroy Realty Corp.

The importance of life science research during the COVID-19 pandemic has underscored the growing need for more high caliber laboratory space, especially in the San Francisco Bay area, one of the largest science industry clusters in the United States.

In 2016, Kilroy Realty Corporation (NYSE: KRC), an industry leader of work environments to the tech industry, significantly expanded its life science portfolio to reflect the demands in the market for laboratory and life science offices that support cutting edge research.

"We've taken the same philosophy that has been successful in our tech developments," says John Kilroy, chairman and CEO of Kilroy Realty. "We provide work environments that really ignite innovation and help companies to retain their most important asset— their people."

In June, REIT broke ground on phase two of its 3 million-square foot, 12-building, 50-acre waterfront life science campus, Kilroy Oyster Point in South San Francisco. The latest phase will include three buildings, roughly 900,000 square feet of space and new amenities that support wellness, connection, and productivity.

The ongoing development of Oyster Point marks the evolution of South San Francisco as a life science hub and will bring local conveniences like an urban village that includes an outdoor amphitheater, outdoor meeting spaces, a state-of-the-art conference center, and a full service restaurant to the newly enhanced waterfront site.

"The buildings are beautiful and will bring new, clean, high-paying jobs here and bolster our local economy," says Mike Futrell, city manager for the city of South San Francisco. Plans for KOP look to incorporate community access to the natural resources and waterfront setting along the San Francisco Bay while catalyzing far-reaching scientific research and development.

"Oyster Point will have tangible benefits for the city of South San Francisco, but it really goes beyond that to a higher purpose," Futrell says. "Since COVID-19, there has been a lot of emphasis on life science research and our capacity as a country to respond to pandemics and variants. Kilroy is delivering something special that will benefit this industry for a long time to come," he adds.

Good to Know

Kilroy Realty purchased the fully entitled land in 2018.
Kilroy Realty is fortifying Oyster Point against an anticipated rise in sea levels.
This is a four-phased, three million-square foot project across a 50-acre waterfront site.
In June, Kilroy Realty broke ground on phase two, which is expected to see shell completion in the early first quarter of 2024.
South San Francisco is home to more than 200 biotech companies.

Sharing a Vision

The area that would become Kilroy Oyster Point was previously a landfill closed in the 1970s and capped for safety. "We were looking for a partner who had a vision of taking an ugly duckling and turning it into a beautiful swan," Futrell says, in reference to the Oyster Point area prior to development. "The area was environmentally contained, but we knew it could be so much more being that it's San Francisco Bay," he adds.

It would take several years and key transactions to bring this dream to fruition. Historically overlooked by developers and travelers favoring its namesake just 10 miles to the north, South San Francisco has gradually evolved into an up-and-coming technology and life science arena that offers much of the same natural allure without the hefty price tag of San Francisco.

"In the last few years, we've seen the South San Francisco area start to grow and evolve, so our hope was that our waterfront on San Francisco Bay would be redeveloped in a way that was special and unique, something that we can be proud of," Futrell says.

Kilroy Realty had a similar vision, and the timing was right. "We saw a massive potential for the site," Kilroy says, "not only to create a world class life science destination but to activate the entire Oyster Point area, which is a large section of the city of South San Francisco." The REIT purchased the fully-entitled land site through an off market transaction in 2018 from a group of five China-based companies that lacked a unified vision for the redevelopment of the site, the company says.

"From our first meeting with Kilroy, we knew we shared a common vision for South San Francisco," says Futrell, who describes the city's collaboration with the REIT as a "partnership in every aspect." Together, the city and Kilroy Realty's team have collaborated on architecture, infrastructure for parks, and approaches to longterm maintenance.

Unlike the greater Bay area's notoriously fraught development reputation, Kilroy Realty found an accommodating and straightforward path to developing Oyster Point. "South San Francisco is very good to work with— they are expedient and responsive. They've embraced our vision and we've embraced theirs, so it's a virtuous cycle that also allows us to increase neighborhood access to these amenities," Kilroy says.

Outdoor meeting space and a sandy beach are among the amenities planned for Oyster Point. Courtesy Kilroy Realty Corp.

Preparing for Rising Sea Levels

The fruits of this collaboration include creating a commercial hub with dining and outdoor amenities, new ferry terminals for waterway access on the Bay, a boutique hotel, and playing fields that appeal to tenants and locals alike. "We've worked with Kilroy on not just what would be built, but how we would share the responsibilities for these amenities in the future," Futrell says. The benefits to the community will be tangible and long term, he adds. Oyster Point includes a series of parks and trails along the waterfront, a marina, as well as a public park with a revitalized sandy beach with dedicated dropoffs, parking, picnic tables, and restrooms.

The plans for Oyster Point also take into account the broader Bay area's natural resources. Oyster Point's shoreline will connect with the San Francisco Bay Trail, a planned 500-mile walking and cycling path around the entire San Francisco Bay running through all nine Bay Area counties, 47 cities, and seven toll bridges.

With more than 350 miles already in place, Kilroy Oyster Point will further connect communities to forms of alternative commuter transit. "Our team has worked closely with the San Francisco Bay Conservation and Development Commission (BCDC), which manages the preservation and conservation of the San Francisco Bay, in order to provide a terrific public experience for those utilizing the Bay trail," says Matt Griffin, senior vice president, Northern California, at Kilroy Realty.

Ferries will improve local and commuter access. "We're very excited about implementing a water transit strategy, which will not only benefit the tenant partners but the greater community of individuals that commute and residents," Kilroy says. "The Bay is a great way to get around because you don't have all of the fixed infrastructure requirements and the same public domain issues that you have on the roads," he adds.

Kilroy's planning for Oyster Point also factors in climate change. "One of the long-term benefits is that they are preparing us for sea level rise," Futrell notes. "Oyster Point will raise that portion of the land to account for the studies that show how the sea level will rise in the next 50 to 100 years. Kilroy is fortifying this area of the city against this rise," he says.

Incubating Ideas

Futrell and the city of South San Francisco are not alone in their enthusiasm for being a part of global medical and life science research initiatives. Kilroy Realty also sees the potential benefits of Oyster Point reaching far beyond South San Francisco as an investment in critical life science research infrastructure.

The San Francisco Bay area is widely considered to be one of the top two largest life science clusters in the U.S., along with Boston-Cambridge, Massachusetts. South San Francisco, meanwhile, is home to the largest biotech cluster in the world with more than 200 biotech companies, according to the city. Life science leasing activity "hasn't skipped a beat" during the pandemic, according to Griffin. "The very nature of the life science industry is fighting disease. The industry is crucial to the pandemic response," he says.

An artist's rendering of lab and office space anticipated for phase two. Courtesy Kilroy Realty Corp.

There's also an organic synergy with the market. According to the Kilroy Realty team, a third of all the companies working directly on the COVID- 19 response have a presence in the Bay Area, occupying more than 10 million square feet of leasing space. "Our region is a major component in the life science ecosystem on a national and international scale," Griffin says.

Life science research also requires laboratory usage, which means work-from-home arrangements are less plausible than in the tech market. "If you consider a lack of work-from-home dynamic, along with a record amount of [venture capital] funding pouring into the life science industry, which is exploring everything from oncology research to fighting infectious diseases, there's a huge amount of demand for lab space in the Bay Area," Griffin adds.

This market demand also aligns with the REIT's larger goals."Our vision is to continue to grow our portfolio in the best clusters with best-in-class products that deliver products that are sustainable, scalable, flexible, and amenity-driven," Kilroy says. In addition to Oyster Point, Kilroy Realty has invested in several properties in San Diego, as well as in Mission Bay, San Francisco.

'Next-Level' Impact

The response from biopharmaceutical and tech industries to Kilroy Oyster Point's offerings and groundbreaking has been immediate and enthusiastic. Within seven months of starting construction on phase one in early 2019, the REIT had entirely leased more than 650,000 square feet as the headquarters for two companies—Cytokinetics, a biopharmaceutical company and Stripe, a popular tech company behind payment processing software used for websites and mobile applications.

Locals can enjoy parks, trails, and picnic areas at Oyster Point. Courtesy Kilroy Realty Corp.

According to Griffin, phase two is expected to see shell completion in the early first quarter of 2024. Phases three and four are ready to begin, pending market conditions-which currently look strong-and would take 30 months to construct post-groundbreaking.

The size of the 50-acre campus and various outdoor amenities have only made Kilroy Oyster Point all the more attractive during the ongoing pandemic social distancing limitations. "We've enhanced certain aspects like filtration systems and building ventilation capabilities to address pandemic needs and we've incorporated touchless technology on the campus," Griffin says. A variety of outdoor meeting spaces and amenities allow for stronger collaboration opportunities.

Kilroy credits the combined architectural, consulting, and internal teams for coming up with "next-level" designs that attract such top-level talent. "Next-level is basically what nobody's done before—it's creating buildings with dual purposes that can last lifetimes," he says.

Next-level design also aligns with Kilroy Realty's documented commitment to sustainability and connecting their tenants with the environment. "Work is such a big part of your life. It should be exciting, and it should connect you to nature where it can," Kilroy says.

With Kilroy Oyster Point, both incoming tenants and residents of South San Francisco will have access to the Bay like never before. "Our hope was for a redevelopment of this entire waterfront to make it a destination, both for people that work in the buildings, and also for residents and visitors to the city. That is what is being delivered," Futrell says.

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Hudson Pacific's $20 Million Pledge to Increase Affordable Housing Supply and Support the Homeless

rich@richgarcia.com — Thu, 05 Aug 2021 12:20:50 +0000

Hudson Pacific's $20 Million Pledge to Increase Affordable Housing Supply and Support the Homeless rich@richgarcia.com Aug. 5 2021

G. Gage

publications@nareit.com

G. Gage is a freelance writer and regular contributor to REIT magazine.

Close to Home

Hudson Pacific is working to reduce homelessness and increase affordable housing across its core West Coast markets.

One of the SDS Capital Group’s Supportive Housing Fund’s first investments was a 40-unit location at the Harvest Tabernacle Church in Los Angeles.

A five-year, $20 million pledge by Hudson Pacific Properties, Inc. (NYSE: HPP) to help increase the supply of affordable housing and support the homeless in its core West Coast markets is being seen by local organizations as a significant commitment toward solving one of the nation's key social challenges.

According to the 2019 Annual Homeless Assessment Report to Congress released in 2020, more than half of the nation's unsheltered homeless are in California. The state has approximately 150,000 people experiencing homelessness, 72% of whom are unsheltered.

Hudson Pacific, which owns and develops office and studio space for the media and tech industries, has witnessed the crisis firsthand. Many of the communities where it operates have been hit hardest, including downtown Los Angeles, Hollywood, Santa Monica and the Mid-Market area of San Francisco.

"If you look at a map, these areas are the epicenters of the homelessness crisis here," says Natalie Teear, senior vice president, innovation, sustainability, and social impact at Hudson Pacific.

In Los Angeles County alone there has been a 49% increase in total homelessness since 2015. "We feel really strongly that what's going on is totally unacceptable. We have a moral obligation to try to help," says Teear, who spearheads Hudson Pacific’s efforts to address homelessness.

The Los Angeles-based REIT's $20 million pledge is part of a multi-pronged approach that includes both impact investments and philanthropic donations, in addition to continued community outreach, and on-the-ground volunteer efforts.

Thriving Communities

Teear says that Hudson Pacific believes in creating long-term vibrant, thriving communities for all. "We also think that it’s in the best interest of our business, tenants, and property values that we do something to address this issue."

Stephen Fiechter, senior director for Metro Los Angeles programs at People Assisting the Homeless (PATH), a nonprofit organization that helps individuals and families successfully transition from living on the street to homes of their own, says Hudson Pacific "is really at the forefront of recognizing the need to do something and to have it be in a solution that involves everybody."

PATH volunteers and staff help families moving into interim housing.

Hudson Pacific’s commitment to addressing the homelessness crisis in California is part of the REIT's larger Better Blueprint corporate responsibility platform, which serves as the foundation for its work on environmental, social, and governance (ESG) issues. "Like any company with an ESG program, there is a wide landscape of issues we could focus on, but we believe it's more effective to focus on a smaller number of issues and commit deeply and drive meaningful change, than try to tackle everything at once and have less impact," Teear says.

Over the years, Hudson Pacific has made numerous contributions to local organizations assisting those experiencing homelessness, including one to the Los Angeles Union Rescue Mission, which provides food, shelter, education, counseling, and long-term recovery programs. Other organizations Hudson Pacific has contributed to include: Safe Parking L.A., PATH in Los Angeles and San Jose; North Beach Citizens in San Francisco, Downtown Emergency Service Center (DESC) and Wellspring Family Services in Seattle, and Covenant House in Vancouver.

Hudson Pacific provides more than dollars though. It is committed to partnering with local organizations like PATH to provide boots on the ground and encourages employee giving by providing its staff with 32 hours of paid volunteer time off annually and matching charitable contributions.

"From the perspective of a provider, we could not be more excited about working with Hudson Pacific because they not only bring financial resources, they bring real estate experience and history with the community, along with human resources," Fiechter says.

In recent years, Hudson Pacific volunteers and funds have helped PATH by assembling hygiene and care kits and Thanksgiving baskets, sponsoring a jazz night fundraiser, and taking part in PATH’s adopt-a-site program in Hollywood. "We have an emotional partnership with [Hudson Pacific] as well that provides the enthusiasm and support with volunteers and engagement of a wider community," Fiechter notes.

A PATH outreach specialist assists a homeless person.

PATH was founded in the 1980s in West Los Angeles by a coalition of faith-based leaders and community members who recognized the need to assist those experiencing homelessness. It is now a state-wide organization. Its development arm, PATH Ventures, works with local communities and funding sources to build permanent supportive housing and has programs that provide case management and support services in those buildings and others.

PATH, along with the other organizations Hudson Pacific supports, operate with the broadly accepted and evidence-based, housing-first approach to helping those individuals experiencing homelessness that may face a variety of additional challenges, from employment, education substance abuse, or mental health. "None of those other challenges can really be tackled effectively if someone doesn't have a home," Teear says.

Good to Know

Hudson Pacific's commitment to addressing the homelessness crisis is part of the REIT's larger Better Blueprint corporate responsibility platform
The company made a $20 million pledge over five years to increase affordable housing and support those experiencing homelessness
Hudson Pacific's first impact investment of $3 million was with SDS Capital Group's Supportive Housing fund
The fund will leverage cost discipline and innovation to complete developments three times as fast and at less than half the average per-unit cost of permanent sustainable housing in California
Hudson Pacific provides its staff with 32 hours of paid volunteer time off and organizes volunteer activities with groups like PATH, which is focused on ending homelessness

Time for Change

Unprecedented levels of inequality, skyrocketing housing prices, a paucity of affordable housing options, an urgent need for criminal justice reform, and the "utter collapse" of the mental health care system are just a few of the issues exacerbating homelessness in the U.S. and in California in particular, according to Teear. "It's hard to tell what the main cause is but the one thing we all can agree on is that it’s time for a change," she says.

"California is phenomenally expensive for a lot of reasons, like construction costs and lots of red tape," Teear says. "No one could envision building their way out of this crisis."

Hudson Pacific is also actively engaged in the newly-formed, Hollywood 4WRD community, an organization founded to bring community members and organizations together to collaborate and coordinate resources to end homelessness in greater Hollywood. Participating public and private stakeholders include real estate owners, businesses, faith-based community members, service providers, health organizations, law enforcement, and residents.

"We’re finding the real work ends up happening at the neighborhood level and Hollywood 4WRD is an example of that," Teear says. Both Teear and Fiechter serve on the board for Hollywood 4WRD, helping to brainstorm solutions for unhoused neighbors and improving the community.

Teear says Hudson Pacific is trying to focus on solutions that are innovative and have the potential to scale, "and on creating some type of breakthrough in this difficult logjam that the cities we serve are in."

Innovative Model

As part of this commitment, Hudson Pacific is investing $3 million with SDS Capital Group’s Supportive Housing Fund, which invests in the development of permanent, supportive housing across Los Angeles and the San Francisco Bay Area.

"SDS has come up with a really innovative model, they’re doing it at a third of the cost, and in less than half the time, so it’s really promising," Teear says.

Founded in 2001, SDS Capital Group launches and manages impact funds in different parts of the country. Each fund focuses on highly distressed and impoverished communities while generating a market rate of return for investors. SDS Capital currently has five different vehicle funds on its platform, with more than a billion dollars invested around the country. The SDS Supportive Housing Fund is their newest impact fund and has currently raised $122 million in investments and has a goal of reaching $150 million by August 2021.

SDS's funding approach is unique— instead of multiple different assets and developers, the funds raised go to support only one developer— RMG Housing, LLC, based in Los Angeles.

"We’re funding RMG because they have such a strong development model for permanent supportive housing and an innovative market-driven approach to developing units at a much cheaper cost," says Deborah La Franchi, founder and CEO of SDS Capital Group. SDS negotiated a limited partnership agreement with RMG to streamline the process and cut out additional legal red tape and delays in the development process.

RMG can then focus on constructing the housing and continuing new innovations in the permanent supportive housing field. Compared to the typical construction costs of $500,000 to $700,000 per single bedroom unit in the Los Angeles area, RMG is developing permanent supportive housing units for an average of $200,000 per unit.

The SDS Supportive Housing Fund has also invested in a 49-unit development at 4604 S. Western Ave. in Los Angeles.

Another factor that distinguishes SDS Supportive Housing Fund is its revolving structure. "We have six years to rotate that $150 million in capital that we will be using to finance 30 projects. We will fund the first 15 and then as we exit each one as the permanent financing is secured and our full investment is taken out, we receive a preferred return," La Franchi says. Those returns are then used to fund the second group of 15 projects.

This model provides equity to the transactions and is not a loan fund, which has made it enticing to contributors like Hudson Pacific.

"Our pledge is really about using our business—and both our charitable giving and investing dollars. This is primarily an impact investing vehicle where we plan to invest in solutions that address the homelessness crisis, but also return money to us," Teear says.

With the capital provided by the SDS Supportive Housing Fund, RMG aims to complete 30 supportive housing projects in six years, a drastically improved timeline compared to the five to seven years needed to complete just one typical permanent supportive housing project in California that requires government financing. Two-thirds of the investments will be in Los Angeles.

Strengthening Communities

With the funding commitment from Hudson Pacific Properties, SDS expects far-reaching results.

"With this model, the SDS Supportive Housing Fund is able to maximize the impact and the number of people that we can bring in off the street and provide housing for," La Franchi says. "We hope to see at least 1800 individuals’ lives absolutely transformed by this housing and that this will be a catalyst for other developments to help revitalize communities," she adds.

While the numbers are daunting, Hudson Pacific says the objective is clear. "Our goal is to help get people into housing. It’s so easy and straightforward, and yet it's so, so hard," Teear says. "It's critical from humanitarian and moral angles, and from a business angle as well, and we think it will make our communities more vibrant, thriving places."

"Hudson Pacific is really rising to the challenge—enthusiastically engaging with the community and leading by example so that we can actually move the needle forward," Fiechter adds.

Hudson Pacific staff volunteer their time to distribute hygiene kits donated by the REIT.

Overcoming Misconceptions

One of the common misconceptions that Stephen Fiechter, senior director for Metro Los Angeles programs at PATH, encounters in his work is the general public's belief that those experiencing homelessness are inherently dangerous, with a tendency toward crime and drug use.

Other hurdles facing those experiencing homelessness include the cultural stigmatization of mental health that drives many people to the streets and the persistent misconception that people actively choose to forgo available resources in order to remain homeless. The COVID-19 pandemic has in many ways exacerbated these fears and societal barriers.

"People experiencing homelessness can often be physically challenged—oftentimes medically compromised—so one of the major concerns was that they would be extraordinarily vulnerable to the virus," Fiechter notes. In response, many shelters decompressed to allow for more space. There were also increased concerns about hygiene protocols. Additional resources were needed that helped PATH and other organizations house people in converted motels and hotels.

"One of the challenges now is to try to figure out how to implement those resources moving forward to create more permanent housing so that all the people who were brought in from the streets during the pandemic will have a place to go rather than back to the streets," Fiechter says.

PATH's partnership with Hudson Pacific continued during the pandemic and included the volunteer opportunities as well as virtual campaigns to raise funds supporting the work, Fiechter says.

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Brookfield Properties’ Fifth + Broadway Is Nashville's New Downtown Landmark

Kyle Gustafson — Mon, 14 Jun 2021 18:24:42 +0000

Brookfield Properties’ Fifth + Broadway Is Nashville's New Downtown Landmark Kyle Gustafson Jun. 14 2021

G. Gage

publications@nareit.com

G. Gage is a freelance writer and regular contributor to REIT magazine.

Brookfield Properties’ Fifth + Broadway creates a link between the Music City’s famed cultural landmarks.

Nashville Nexus

Brookfield Properties’ Fifth + Broadway creates a link between the Music City’s famed cultural landmarks.

Photo by ZACK BENSON, ZACKBENSONPHOTO. Courtesy Brookfield Properties.

Fifth + Broadway, an ambitious mixed-use project in downtown Nashville, has turned the former site of a convention center into a thriving community meeting point that celebrates the city’s unique musical heritage and melds seamlessly with its other iconic destinations.

One of the largest single mixed-use developments in the history of Nashville and the state of Tennessee to date, Fifth + Broadway is owned by Brookfield Properties, a subsidiary of Brookfield Property Partners (Nasdaq: BPY).

Located at the corner of Broadway and John Lewis Way (formerly Fifth Avenue) across from the popular Bridgestone Arena and the historic Ryman Auditorium that is owned by Ryman Hospitality Properties, Inc. (NYSE: RHP) , Fifth + Broadway replaced the 6.2-acre Nashville Convention Center.

The project includes The Place, a 34-story, 386 residential rental unit tower and 372,000 square feet of class-A office space at 501 Commerce, anchored by investment management firm AllianceBernstein’s headquarters, plus 2,000 parking spots. It’s also home to the 56,000- square-foot National Museum of African American Music, and 200,000 square feet of dining, entertainment, and retail.

The multi-year project began with a request for proposal (RFP) issued by Metro Nashville to redevelop the old convention center site. The RFP was won by local developer Pat Emery, who partnered with Brookfield Properties. Together they worked with Nashville’s Metro Development and Housing Authority on tax increment financing for certain components of the project. The original plans focused on office and retail but through Brookfield’s involvement, and the evolution of the process over time, the vision for the site expanded to include residential and additional offerings. It became a destination.

Museum Magnet

The addition of the National Museum of African American Music is the “cornerstone” of the public and private collaboration and the culmination of two decades of planning, according to Brookfield Properties.

“We accommodated the core and shell space for the National Museum of African American music as part of the RFP and it is arguably one of our most significant anchors and an integral part of Fifth + Broadway,” says Burgin Dossett, vice president of mixed use development at Brookfield Properties.

The museum opened on Martin Luther King Jr. Day 2021. Even with limited COVID-19 hours, the response to the museum has been overwhelming and it’s been regularly sold out since opening.

The residences offer elegant comfort above the booming city. Photo by ZACK BENSON, ZACKBENSONPHOTO. Courtesy Brookfield Properties.

The museum is dedicated to inspiring and educating communities about the important role African Americans played and continue to play in shaping the music industry. Exhibitions trace thirteen historical eras and draw on a collection of 1,600 artifacts, such as a guitar owned by legendary blues musician B.B. King.

“The museum involved public, private, and nonprofit sectors collaborating to get the best outcome possible,” explains Butch Spyridon, president and CEO, Nashville Convention & Visitors Corp. (NCVC), which is contracted by the city to cover its destination sales, marketing, and branding.

This spring, Fifth + Broadway also launched Art in Motion, a month-long celebration of local art and artists. The series featured live painting and culminated in the April unveiling of four six by nine foot pieces created by local artists and installed in moveable frames throughout the property to introduce new audiences to their work.

“Art in Motion is a great example of our perpetual effort to engage the creative heartbeat of the city to make this a truly special place worth returning to again and again,” says Tom Miller, general manager of Fifth + Broadway. “Fifth + Broadway is a celebration of Nashville. It is more than a project to us; it is a showcase of what makes Nashville special.”

"Art in Motion is a great example of our perpetual effort to engage the creative heartbeat of the city to make this a truly special place worth returning to again and again." - Tom Miller, General Manager of Fifth + Broadway.

The development’s new tenants share that view. “Fifth + Broadway is a meeting point of the community that has really allowed the scope of downtown to change a bit, but it still feels authentic to Nashville,” says Bree Richmond, vice president of retail at Tecovas, a growing western wear brand.

Good to Know

Dene Oliver, chief vision officer for Brookfield Properties, first sketched the design for Fifth + Broadway on the back of a napkin.
Construction on Fifth + Broadway began in April 2017, led by Skansa USA.
70,750 tons of material were recycled from construction debris— approximately the weight of 353 blue whales.
More than 7,000 people worked on building Fifth + Broadway.
If Fifth + Broadway’s three towers were stacked on top of each other, they would measure 894 feet high—equivalent to the Rockefeller Center in New York City.
Slim & Husky’s is the first Black-owned business on lower Broadway.
15,408 tons of concrete and 3,875 tons of steel were recycled from the demolition of the Convention Center. The total weight is equal to nearly two Eiffel Towers.

The store, along with the majority of the development’s retail component, opened on March 4 and the initial reception has exceeded expectations, despite underlying pandemic challenges. Part of that, according to Richmond, has been the integration of Fifth + Broadway’s design and offerings into the existing fabric of the city. “It’s not competing with the culture of Nashville; it’s additive,” she says.

Stakeholder Collaboration

The scale of development required bringing all the public and private stakeholders together, coalesced around a vision for “Nashville like never before.” Its proximity to the Ryman Auditorium and Bridgestone Arena provided a unique opportunity to lift all ships.

“Locals flock to both of those venues, and now they have the opportunity to shop and dine before or after. It’s a more than welcome addition to the city’s offerings,” Spyridon says. Fifth + Broadway is also within blocks of Music City Center, the Country Music Hall of Fame, and the popular Honky Tonk tourism district.

“There’s a real excitement among all of these stakeholders. We want Fifth + Broadway to be an extension of what they do,” Miller says. “We want to complement their businesses. We share the same customers and want to be sure that we’re directing people to their establishments, and likewise.”

According to Spyridon, if there was a weakness to the city’s previous offerings, it was retail, “so we were pretty excited to work with [Brookfield].” Fifth + Broadway brought in more than 10 retailers, including national brands like Sephora and Apple, as well as local retailers like Molly Green, a family-owned clothing boutique.

“We’re partnering with Brookfield on servicing both local and out-of-town customers, leveraging them as a new addition to the city’s offerings,” Spyridon says. Together, Brookfield and NCVC plan to respond to market needs, reach the popular bus tour crowds, and bring in more local retailers, he adds.

For growing brands like Tecovas, Nashville seemed like a perfect fit. “Our brand has really deep roots in country music. Being based in Austin, country music is a part of our DNA,” says Richmond, “so opening in Nashville made sense.”

Since its launch five years ago, Tecovas has grown to 14 stores, the Nashville store the latest. “For us, the right location is in the heart of it all. Broadway is really where Nashville comes alive,” Richmond says. Tecovas joined Fifth + Broadway in the early leasing stages. “Brookfield has always been really supportive and an awesome partner.”

The store’s design reflects Nashville flavor and music history: Tecovas commissioned an artist to create an eight by five foot wall mural foot that is a tribute to the Ryman Auditorium. The decor includes locally sourced vintage items and musical instruments. The location has between 10 to 15 employees and has navigated the pandemic by focusing on safety and personal service in smaller numbers.

“We’ve been busier than we expected, and we’ve had the opportunity to introduce people to the brand, and do several great in-store, personal experiences,” Richmond says.

Elevated Offerings

While the 386 luxury rental units at The Place and class-A office space at its office tower 501 Commerce will likely draw newcomers and young professionals alike, Fifth + Broadway also hopes to entice local Nashvillians.

“We offer an elevated downtown that’s still approachable. Maybe you’re coming to an event down here at the theater, and you’re looking for something else to complement it like dining or shopping” Miller says. “We see this as a benefit to Nashvillians first and foremost. It’s a better overall value proposition, if you live in Nashville.”

Fifth + Broadway’s mix of fast-casual and elevated dining options is designed to reach everyone and includes national and local names. The development has also provided the opportunity for the first Black-owned restaurants in the downtown area, Spyridon says, referring to local staple Prince’s Hot Chicken and the entrepreneur-led Slim + Husky’s Pizza Beeria, designed around a “love for hip hop & R&B culture.”

Photo by SAM CALDERON, RAWEXPOSURE Courtesy Brookfield Properties.

The multi-level Assembly Food Hall is a comprehensive culinary and entertainment destination, offering a 100,000-square-foot central gathering place with more than two dozen food spaces and bars and a full-service restaurant focused on wine, all with access to a rooftop live music venue.

“Most Nashvillians are completely shocked at the scale, the scope, and the quality of the development…and that it fits seamlessly downtown,” Spyridon says.

Fifth + Broadway has also attracted top names in fine dining like 12-time James Beard Award Nominee Sam Fox, founder of Fox Restaurant Concepts.

“There was an immense hole in the market for something more upscale, particularly something around food and entertainment,” says Fox, who had a previous relationship with Dene Oliver, chief vision officer at Brookfield Properties and previously the co-founder and owner of real estate development firm OliverMcMillan in San Diego. “We heard about the opportunity at Fifth + Broadway and we reached out.”

In March, Fox opened Blanco Cocina + Cantina, focused on Sonoran style Mexican food built around expert cocktails. It’s the restaurant’s seventh location and the first in Nashville. The restaurant group subdivided its larger 35,000 square foot lease with Blanco taking roughly 4,500 of the bottom level. Blanco exceeded Fox’s initial expectations for its opening month with continuous bookings.

The remaining leased space provided an opportunity for an “entirely new concept at a one-of-a-kind location,” Fox explains. This new venture is called the Twelve Thirty Club, a modern take on the classic supper club. It’s a multilevel experience: a Honky Tonk vibe with live music on the first level, followed by an intimate 50-person cocktail lounge, then a 400-seat supper club with live music and a rooftop terrace with city views.

Between the two dining experiences, Fox expects to employ 350 people, a welcome number for an industry impacted by the pandemic. “COVID has been a huge challenge and we are on the backside of that challenge. We’re thankful for the team and everyone’s hard work, and excited to get this project wrapped up,” he says.

These dining ventures enhance the impact of Brookfield’s large philosophy for the city. “Fifth + Broadway is the evolution of lower Broadway, which had typically been only Honky Tonks and bars, and not necessarily elevated experiences and dining opportunities,” Fox says.

A Sense of Place

Fifth + Broadway offers spots to soak up the city’s musical vibe, or just plain people watch. Photo by SAM CALDERON, RAWEXPOSURE Courtesy Brookfield Properties.

Brookfield Properties estimates that Fifth + Broadway will create more than 1,000 retail-related jobs and facilitate more than 2,000 office jobs, in addition to the 7,000 construction jobs it created during development. With the state’s vaccine rollout continuing, Brookfield Properties aims to host more elaborate opening celebrations safely with its food hall and roof deck concert venue fully operational.

The reception to Fifth + Broadway has already been “outstanding” in the community, Spyridon says. “It’s still in its infancy so we think the potential benefits to the city and community have only just begun.” The diverse offerings have attracted both tourists and local residents to downtown Nashville, while also creating jobs and boosting the tax base.

“There’s now a sense of community and place. Brookfield put all the pieces together,” Fox says.

For its part, Brookfield recognizes the ongoing trend towards mixed-use development and how cities continue to embrace the model. “It’s about bringing the best and the brightest together in cities at high profile sites like Fifth + Broadway,” Dossett says.

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Kimco's Lincoln Square Revitalization

Kyle Gustafson — Mon, 05 Apr 2021 20:02:37 +0000

Kimco's Lincoln Square Revitalization Kyle Gustafson Apr. 5 2021

G. Gage

publications@nareit.com

G. Gage is a freelance writer and regular contributor to REIT magazine.

Kimco Realty’s Lincoln Square has turned an underutilized lot into a community focal point.

Neighborhood Nexus

Kimco Realty’s Lincoln Square has turned an underutilized lot into a community focal point.

Lincoln Square’s 39,547-square-foot green rooftop provides a unique community amenity for residents.

Since its opening in 2018, Kimco Realty Corp.’s (NYSE: KIM) Lincoln Square in Philadelphia has become a neighborhood linchpin that has revitalized an underutilized property, incorporated the adaptive reuse of a historic site, and led to the economic revival of the surrounding community.

Located at 1000 South Broad Street, the 3.6-acre mixed-use development occupies a full city block and connects the Center City and South Philadelphia neighborhoods through its mix of multifamily units and retail staples like Target and PetSmart.

The project also involved salvaging a historic train shed and transforming it into a Sprouts Farmers Market, an Arizona-based grocery chain specializing in natural and organic foods.

The creative, adaptive reuse of the site is something that Kimco says was sorely needed in the area. The success of the project has even catalyzed other new developments in its vicinity.

“By putting 100,000 square feet of brand new, state-of-the-art retail in addition to 322 new multifamily units in a dense urban market, Lincoln Square has provided a model for this kind of project in this neighborhood that had been lacking,” says Wilbur Simmons, president of Kimco’s southern region.

Kimco CEO Conor Flynn adds that even through the COVID-19 pandemic, Lincoln Square continues to be a signature property in the company’s growing mixed-use portfolio. “This center is a prime example of how essential retail has prevailed, and how a multifamily component can enhance an asset and drive additional traffic to the retail.”

Through transforming what was once an underutilized lot in a prime location, Flynn says, “we’ve made Lincoln Square a community focal point, providing an unmatched urban living experience and much-needed retail and grocery options in a community that was once underserved and underdeveloped.”

Philadelphia City Councilmember Kenyatta Johnson, representing the Second Council District, notes that given the near four-acre size of the square block, and the corner’s importance as the gateway and crossroads between the neighborhoods of Center City, Southwest Center City, South Philadelphia, Point Breeze, Graduate Hospital, and Hawthorne, “any development of this property had to be carefully crafted.”

Johnson adds that Lincoln Square has “enhanced the quality of life in the area by replacing a parking lot and blighted historical building with a well-designed, thriving mixed-use property.”

Lincoln Square hosts Sprouts Farmers Market’s first location in Philadelphia.

Good to Know

Lincoln Square was completed in 2018 at a gross cost of $149 million
Lincoln Square offers more than a football field worth of community amenity space
The Sprouts Farmers Market location, the brand’s first in Philadelphia, incorporates the adaptive reuse of the site’s historic train shed
The train shed was added to the National Register of Historic Places in 2011
Lincoln Square’s 322-unit residential component bridges the gap between South Philly and Center City neighborhoods

Advocating Adaptive Reuse

Kimco’s partner in the venture, Philadelphia-based Alterra Property Group, LLC, had worked with the city on acquiring the property and approached Kimco with plans for utilizing multiple developers to create Lincoln Square. Kimco saw the potential to play a larger role in the project.

“Ultimately, the beauty of [Kimco’s] operating platform is that we do multifamily on a select basis ourselves, along with the retail that’s right in our wheelhouse,” Simmons explains. “We wanted to do a more simplistic transaction with one party, instead of a complicated one with multiple developers. A complex negotiation that was taking four or five months, all of a sudden took four or five days and we had entered a straightforward joint venture,” he says.

The city block now known as Lincoln Square holds two-fold historical significance in Philadelphia’s timeline. Built in 1876 for the Philadelphia, Wilmington, and Baltimore Railroad Company, the train shed and adjoining head house at the site were situated next to a renowned passenger station constructed in 1852. That train station served as a stop for President Lincoln’s funeral train following his assassination in 1865, and the accompanying shed held a public viewing as well.

The entrance to the 3.6-acre mixed use development.

The train shed itself is architecturally significant and was added to the National Register of Historic Places in 2011 because of a roof supported by a 100-ft Fink truss system, one of the few remaining examples in the U.S.

Incorporating the historic shed into the overall design posed a unique challenge, but one that was embraced by Sprouts. “While it was daunting as a grocery store to design and put together, it’s turned out to be a really exciting place for people to shop,” says Terry Gibbons, vice president of real estate at Sprouts.

Sprouts joined the project to help bridge the neighborhood gap in grocery offerings. “When we evaluated the Philadelphia market, we discovered the intersection where Lincoln Square is located was ground zero in the community and had a lot of potential,” Gibbons says.

“From the very start, all the way through the project, we could not have asked for a better partner in Kimco Realty,” he adds. They were there, every step of the way during development and they’ve been there for us since opening.”

Kimco credits the Sprouts team for its willingness to think outside of the box in organizing their new store.

“It took a lot of creativity on the part of Sprouts to really orient the build and get comfortable with a very deep and somewhat narrow building versus a typical grocery store layout, which is usually wider than they are deep. But it’s worked out wonderfully and it’s a very successful Sprouts,” Simmons says.

Lincoln Square bridges the gap between the South Philly and Center City neighborhoods.

Live-Work-Play

With plans for repurposing the historic component as a grocery anchor underway, Kimco then focused on the residential and retail components that would give the square its live-work-play vibe.

“We sought to utilize our frontage on Broad Street and Washington Avenue to facilitate the retail access on street level,” Simmons explains. Kimco quickly leased 100% of its retail with a mix including Target, PetSmart, Starbucks, Chipotle, and Insomnia Cookies.

“The existing residents were very helpful to us, and we worked with them extensively on the product type and the mix of retail that would appeal to them, so they’ve been very supportive of the project as a result,” Simmons adds.

Designed by Philadelphia-based BLT Architects, Lincoln Square’s 322-unit residential component bridges the gap between South Philly and Center City neighborhoods where apartments remain in high demand. Residential units offer cityscape views and range from studio to three-bedroom layouts. Select units also have a terrace or balcony, providing residents with their own private outdoor space.

The design incorporates a large parking deck in the center of the site and the highest level of it has been utilized to build a 50,000-square-foot outdoor amenity space, which is by far the largest outdoor amenity space for multifamily housing in the city, according to Kimco. The multilevel parking garage offers 415 public and private parking spots with easy access to the retail and residential elements.

“The rooftop space is a game changer in terms of the amenity base that we were able to offer inside Lincoln Square’s multifamily product,” Simmons says. Residents can use state-of-the-art indoor and outdoor features including a fitness club, outdoor running track, bike storage, dog run, pet grooming station, golf simulator, and a green roof with outdoor kitchens, group gathering spaces, lawns and fire pits. Community members can also enjoy the new Lincoln Walk: an outdoor seating and gathering space that will host special events and programming.

With the train shed transformed into a Sprouts and linked with the adjacent residential tower, the block became an anchor for residents and visitors to the community. “Lincoln Square is rich in retail offerings and public space that will invigorate the surrounding area as much as the community of tenants who call it home,” Michael Prifti, principal at BLT Architects, noted in advance of its 2018 launch.

The rooftop space offers a range of group gathering spaces.

Bridging Neighborhoods

The benefits go beyond serving Lincoln Square’s residents— the project has expanded much-needed retail and grocery offerings to a neighborhood previously considered a “food desert,” along with adding jobs and tax revenue.

“Lincoln Square created hundreds of new jobs for Philadelphians, brought a reputable fresh grocer into the market, and brought other much-needed retail offerings, many of which were specifically requested by the surrounding residents,” says Councilmember Johnson.

Gibbons adds that Lincoln square has replaced an underutilized piece of property and become the most prominent retail development in the southern section of Philadelphia in the last few years. “We’re proud to be bringing fresh food at an affordable price to people who beforehand, didn’t have access to high quality, farm fresh products,” he adds, in reference to Sprouts. “We’ve had an overwhelming reception from the community since we opened our doors.”

Sprouts, which employs roughly 100 workers, along with the Lincoln Square’s other retailers, have been able to weather the challenges brought by the COVID-19 pandemic by continuing to supply essential products and services to the neighborhood. The mix of Lincoln’s Square’s offering makes it “a prototype example of necessity retail,” according to Simmons.

For Kimco, a measure of success for Lincoln Square is that the project has prompted other new developments in the area and proven the economic potential of the neighborhood.

“We welcome these new projects wholeheartedly because they really justify the critical mass that we always believe that could be assembled at Broad and Washington streets—it’s become an epicenter,” Simmons says.

In a city of neighborhoods like Philadelphia, the right mix of retails and thoughtfully designed multi-family residential has helped bridge the gap between them. “We always believed that the balance of the area was ripe to really pop and continue to be developed and we’re seeing that, even through the pandemic,” he adds.

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Alexandria Real Estate Equities' New Data-driven Opioid Treatment and Recovery Campus

Kyle Gustafson — Tue, 02 Feb 2021 16:19:53 +0000

Alexandria Real Estate Equities' New Data-driven Opioid Treatment and Recovery Campus Kyle Gustafson Feb. 2 2021

G. Gage

publications@nareit.com

G. Gage is a freelance writer and regular contributor to REIT magazine.

Alexandria Real Estate Equities, Inc. brings a new model of opioid addiction treatment to the country’s hardest hit city.

Continuum of Care

Alexandria Real Estate Equities, Inc. brings a new model of opioid addiction treatment to the country’s hardest hit city.

Property shots courtesy of Alexandria Real Estate Equities, Inc.

A pioneer in the development of collaborative life science and technology campuses, Alexandria Real Estate Equities, Inc. (NYSE: ARE) is expanding its strategic mission of advancing human health by revolutionizing treatment options for those suffering from opioid addiction.

Last fall, Alexandria delivered OneFifteen Living, the residential housing component of the innovative OneFifteen opioid treatment and recovery campus in Dayton, Ohio. Alexandria led the design and development of the 4.3-acre campus in partnership with Verily, the life sciences division of Google parent company Alphabet Inc.

OneFifteen Living consists of a three-story, 26,304-square-foot residential housing building with separate living spaces for women and men, ample natural light, communal kitchens, a fitness center, a meditation room, rooms for individual and group therapy, and thoughtfully-designed outdoor space.

The design reflects OneFifteen’s overarching, holistic approach to data-driven opioid treatment by creating an entire ecosystem to support recovery. The residential component provides safe spaces for treatment and recovery while helping to facilitate family reunification—considered a critical component of the recovery journey.

Breaking the Cycle

“The recidivism rate for opioid addiction is extremely high so it became pretty clear that you can’t just detox someone without getting them to live soberly,” says Joel Marcus, Alexandria’s executive chairman and founder.

Along with the residential component, the campus consists of a crisis stabilization unit, an inpatient residential treatment center, and an outpatient clinic. These operations work in tandem to help break the cycle of addiction through learning, science, and partnership. With the opening of OneFifteen Living, it’s become clear that the project is both novel and is arriving not a moment too soon.

“People living with opioid addiction are dying from unintended overdoses at an alarming rate,” says Marti Taylor, R.N., M.S.N., president and CEO of OneFifteen. “We are on a quest to reverse the course.”

OneFifteen was named for an impactful statistic: 115 people died each day in the U.S. from unintentional opioid overdoses in 2017.

Taylor says OneFifteen creates an “ecosystem” where all levels of care are available on one campus, creating a seamless continuum for the path to recovery. “Our hope is that patients will have a greater chance for better, long-term outcomes if they receive all of their treatment in one location and are surrounded by the same care team,” she adds.

The need is dire. Opioids were involved in nearly 47,000 deaths in 2018, which is nearly six times the number of opioid-involved overdose deaths in 1999, according to the Centers for Disease Control and Prevention. Getting sustained help and support throughout the recovery process is particularly challenging and transition points increase vulnerability. “Research shows that when there is a break in care, nearly half of patients will not move to the next level of treatment,” Taylor notes. OneFifteen’s unique approach hopes to fill the gaps.

A Revolutionary Idea

The opioid epidemic has presented an unprecedented challenge to those suffering from addiction, while also placing extraordinary strains upon existing healthcare systems.

“The opioid crisis was emerging in a number of locations as an apocalyptic kind of situation—it was killing so many people because of these easy-to-access pills and nonexistent treatment options, other than 28-day programs, for example,” Marcus says. “We really wanted to do something about it.”

During the 2017 J.P. Morgan Healthcare Conference, Marcus and his team, and Andrew Conrad, CEO, chairman and founder of Verily, brainstormed ideas for how the two companies could help.

“We came up with this idea of creating a physical platform where you would have a continuum of care—data-driven, and very high quality care, from intake, to detox, to family reunification, sober living, job training and job placement,” Marcus says.

OneFifteen’s campus is anchored around a curved pathway that connects all the experiences and elements of the OneFifteen ecosystem.

Described as an innovative, “learning health system,” OneFifteen was named for an impactful statistic: 115 people died each day in the U.S. from unintentional opioid overdoses in 2017. Together, Alexandria and Verily began assembling a team of experts to create and manage OneFifteen.

“When I received the call from Verily in 2018, I was intrigued by the vision of creating a learning health system focused on the opioid epidemic,” Taylor recalls. Dr. Rob Califf, Taylor’s longtime colleague from Duke University Hospital, introduced Taylor to the plans for creating a campus offering a full continuum of care for those experiencing substance use disorder. At that time, Taylor was the CEO of University Hospital and the Ross Heart Hospital at the Ohio State University Wexner Medical Center, managing more than 5,000 employees. “I found myself curious about this opportunity to build something literally from the ground up,” she says. Taylor joined Verily in July 2018.

Good to Know

In the last decade, overdoses have emerged as the leading cause of death in the U.S. for people under the age of 50.
More than 2 million Americans grapple with opioid related dependency and addiction.
Accidental drug overdose deaths in the U.S. rose by 4.6% in 2019 to 70,980, including 50,042 involving opioids.
In 2017, Dayton, Ohio had more opioid-related deaths per capita than anywhere else in the country.

The choice of Dayton for OneFifteen was strategic. In 2017, the city had more opioid-related deaths per capita than anywhere else in the country and was considered “ground zero” for the epidemic. The city and county were looking for solutions. “We knew that the need in Dayton was great,” Taylor says. “We met with community leaders who were open to the idea of being a part of a solution that could impact substance use disorder treatment at a much larger scale.”

The west Dayton location offered specific advantages. Alexandria and its partners wanted a site to be convenient and central in order to meet the maximum number of patients. The Greater Dayton Regional Transit Authority added a bus stop close to the OneFifteen Outpatient Clinic to accommodate those patients coming from outside the area.

Meanwhile, patients can take part in educational programming at nearby Sinclair Community College. The campus is also a short walk from the Montgomery County Job Center where patients can benefit from a full range of workforce development tools to help them find, obtain, and keep a good job, Taylor explains.

Building Partnerships

From the beginning, it was clear that OneFifteen’s success would be dependent on the ability to build community partnerships, Taylor says.

According to Alexandria, the project faced some initial concerns and pushback from neighborhoods in the vicinity of the OneFifteen campus. Education and outreach helped alleviate those concerns over time. “The OneFifteen team spent a lot of time with the neighbors, brought them into charrettes, and explained the project and benefits,” Marcus says.

Another challenge was getting competing health systems and multiple organizations in the area to work together on a problem that was bigger than themselves. “With Verily and Alexandria already coordinating efforts, we began to talk with the two health systems in Dayton to share our vision to create a more effective, more cost-efficient way to help people experiencing substance use disorder onto a path of recovery,” Taylor says. Premier Health and Kettering Health Network joined Alexandria and Verily as founding partners on the operational side.

"Our hope is that patients will have a greater chance for better, long-term outcomes if they receive all of their treatment in one location and are surrounded by the same care team." - Marti Taylor, R.N.,M.S.N.,president and CEO of OneFifteen

The Montgomery County Alcohol, Drug & Mental Health Services Board was also supportive of the idea to create an innovative campus in Dayton and became an important funding partner for the clinical work, Taylor says. The city of Dayton and Montgomery County have also been integral to their programming. Multiple working groups regularly meet in Dayton to avoid duplication of efforts and maximize the limited resources in order to have a positive and comprehensive impact.

“These community partnerships have become key to our success. We are happy to supplement and enhance the systems in which we find ourselves,” Taylor says.

Taylor’s team regularly meets with stakeholders and leaders in the Carillon Civic Council and the Greater Edgemont Community Coalition to facilitate open conversation, address concerns, and share ideas. The president of the Carillon Civic Council sits on the OneFifteen Recovery board to promote transparency and active community participation. The mayor, city, and state have all applauded these monumental efforts.

“OneFifteen has been a bright star here. It has had a huge impact on a community that has been hit by a lot of tragedy in recent years,” says Lynne Zydowsky, chief science officer for Alexandria and president and co-founder of the Alexandria Summit. “We came in as outsiders and became a part of the Dayton community. The hospital systems have coalesced around it,” Zydowsky says.

Model for Success

The key to OneFifteen’s approach, according to Zydowsky, is that it is data-driven and evidence-based. Verily utilizes analytics to generate insights that have the potential to advance the understanding of how to treat and promote sustained recovery for those experiencing addiction.

“This approach helps monitor each patient, much like a personalized medicine approach in the sense that we have a very specific understanding of each patient and what they need, knowing why they might fall off in treatment, or why they stay on treatment. This hopefully ensures that sobriety continues,” Zydowsky says.

OneFifteen’s residential component enables treatment and recovery while helping to facilitate family reunification.

Rather than traditional treatment centers that detox and then release patients after 28 or 30 days without support and future treatment, OneFifteen considers recovery a journey. The campus is thoughtfully designed around a central, curved pathway connecting all of the services to guide patients on that journey. OneFifteen’s services are accessible to anyone in need of treatment, regardless of insurance status.

The OneFifteen Outpatient Clinic and its Operating Partner Samaritan Behavioral Health opened in October 2019, and the walk-in facility OneFifteen Crisis Stabilization Unit (CSU) followed in February 2020. According to Taylor, OneFifteen’s team had a goal of providing services to 1,000 individuals in OneFifteen’s first 12 months. By November 2020, they had exceeded that goal and had already treated more than 2,100 people.

Prior to opening, the only options for patients needing immediate addiction care were the local emergency rooms. “The most important benefit to the Dayton community is that 2,100 people had another choice for care that was not in existence just 18 months ago,” Taylor notes.

"Our goal was to make this a model for other cities and other states. If we could spread this throughout the country, we could actually overcome this scourge." – Joel Marcus, Alexandria’s executive chairman and founder

Having this option available also helps relieve pressure from emergency rooms in the Dayton community. The ongoing COVID-19 pandemic has resulted in overwhelmed medical facilities, limited mental and behavioral house services, and breaks in essential support networks for those grappling with addiction. Treatment facilities outside of the overburdened hospital systems are needed more than ever.

Future Plans

Alexandria says it will continue to focus its core business on life science real estate, lab space, and scientific research. More than 100 of the companies the REIT works with, such as Pfizer, Moderna, and AstraZeneca, have been involved in combating COVID-19 through vaccine development, research, and testing.

According to Marcus, the company plans to create a model similar to OneFifteen on the West Coast to address homelessness by creating a data-driven continuum of care. Alexandria and Verily also hope that OneFifteen will inspire similar projects around the country. “What we learn from the data in Dayton will be shared broadly to impact best practices in treatment medicine everywhere,” Taylor notes.

For his part, Marcus is optimistic that OneFifteen will play a meaningful role in helping to eradicate the opioid epidemic. “Our goal was to make this a model for other cities and other states. If we could spread this throughout the country, we could actually overcome this scourge,” he says.

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Magazine Issue

January-February

Magazine Issue Year

2021