New retail/entertainment center under construction in Seattle With construction financing complete, work has begun on Pacific Place, a 335,000 sq. ft. center in Seattle, Wash. A project of Pine Street Development LLC, Seattle, the center will have five levels of shops, restaurants and entertainment including tenants such as General Cinema Theatres, Pottery Barn, Williams-Sonoma Grande Cuisine, Canyon Cafe and Starbucks Coffee.
Pacific Place was designed by NBBJ in Seattle in association with Elkus/Manfredi Architects Ltd., Boston. Seafirst Bank, Seattle, assembled the construction financing; other participants included Washington Mutual Bank, Seattle, and Washington, D.C.-based Multi-Employer Property Trust. Together they provided $127 million in debt.
TrizecHahn to redeem $82.5 million of senior notes Following through with the intention stated in its recent equity prospectus, Toronto-based TrizecHahn Corp. has issued a redemption notice to the trustee of the 10.875% senior notes due October 2005 issued by Trizec Finance Ltd. The issuer is a subsidiary of TrizecHahn and will redeem $82.5 million of the principal amount of the notes outstanding at a price of $109 plus accrued interest on June 30, 1997.
The redemption is going to save the company approximately $9 million each year in interest expense; after the redemption, $167.5 million of the principal amount of the notes will remain outstanding. The trustee is Mellon Bank, F.S.B., and it will administer the redemption in accordance with the terms of the trust indenture.
Divaris expands its Miami retail leasing portfolio The Miami office of Divaris Real Estate Inc., Virginia Beach, Va., has been given several leasing assignments for shopping centers located in the South Florida market, including two new projects. The new developments in downtown Miami being marketed by Divaris include Brickell Commons, a 235,000 sq. ft. entertainment complex, and the 24,000 sq. ft. specialty center Brickell Village. Together, the recent assignments bring Divaris' portfolio to 13.5 million sq. ft.
Patriot American plans major retail renovation project Dallas-based Patriot American has announced plans for a retail renovation project in its historic Phelan Building in downtown San Francisco. Construction is set to start this summer on the $7 million renovation and conversion of the basement, first and second floors of the building into 75,000 sq. ft. of retail space. Patriot American will continue to lease office space in the top nine stories, currently more than 95% occupied.
The renovations have been approved by both the Landmarks Preservation Advisory Board and the city of San Francisco. The redevelopment was fueled by Patriot American's new lease with Dallas-based CompUSA, which will construct a 30,000 sq. ft. store anchoring the first floor and extending into the basement; the store is slated to open in mid-1998. Other tenants will include Wilson's Leather, Wells Fargo Bank, Starbucks Coffee and Garden Botanika.
The Mills Corp., Tishman Speyer announce strategic relationship Arlington, Va.-based REIT The Mills Corp. and New York-based Tishman Speyer Properties, an international developer and owner, plan to jointly develop and operate retail and entertainment projects in Europe, South America and Asia. The Mills Corp. is a developer and operator of super-regional entertainment and value-oriented centers, and Tishman Speyer has developed and acquired more than $6 billion in commercial real estate in the United States and abroad. The new venture's strategy will be to draw upon the successful elements of the Mills projects in the United States and adapt them in ways best suited to an international marketplace. The projects will range in size from 800,000 sq. ft. to 2 million sq. ft.
The Mills Corp. and Tishman Speyer will have equal interests in each project developed by the joint venture. It is anticipated the the projects will represent an investment of $150 million to $200 million or more each. The two companies are currently also exploring opportunities in Germany, Brazil and the United Kingdom, and they plan to look into the feasibility of doing similar projects in Japan.