| |
| Feb. 23, 2004 |
Construction: Retail Projects to Dominate Local Construction in 2004
by Jeff Quackenbush - North Bay Business Journal |
| |
Retail-related projects are shaping up to command a dominant component of Sonoma County construction in 2004.
The chief example is Basin Street Properties' $100 million-plus Petaluma Town Center project. Wright Contracting broke ground on 1,400-seat movie theaters and a 530-space parking garage last month for fourth-quarter completion.
Also in Petaluma last month, Robertson Property Group broke ground on its redevelopment of the Pacific Theaters movie house into the 166,400sf Redwood Gateway Retail Center, anchored by a Kohl's department store.
Other large retail developments in the county will see further construction this year. Harmon Management has started construction on a combination Kentucky Fried Chicken/A&W restaurant at Shiloh Center in Windsor. In addition, a 10,000sf half-retail/half-foodservice building is set to come out of the ground in front of the existing Wal-Mart, according to Keegan & Coppin's Dino D'Argenzio, who is marketing the development.
Two more buildings are slated to come out of the ground at Safeway's Mendocino
Marketplace redevelopment project in Santa Rosa, fueled by demand for well-located space despite top-market rents at that center of $3.50-$4/sf per month.
Kitty-corner from Mendocino Marketplace, Longs Drugs plans to add 3,000sf-4,000sf to its building for other retail and a drive-through window, according to Mr. D'Argenzio. That project may extend to a facelift for the center, he adds. New Orchard Supply Hardware and Longs Drugs stores long planned for Montecito Shopping Center in east Santa Rosa may start construction, too.
New space will be built at several of the county's small retail centers. Köch Construction will be breaking ground this spring on a 19,000sf fully leased mixed-use building at Windsor Palms neighborhood center in Windsor, wrapping up that development for owner Dick Schultze of KOR COMMERCIAL. In Cotati, a 14,200sf building is set to come up at Rancho Cotati Shopping Center.
Retail vacancy is well below 5% countywide, and more retail leasing has been hampered by a dearth of well-located space, according to Keegan & Coppin and BT COMMERCIAL. "The high income and education levels of the residents of Santa Rosa and Sonoma County make it an attractive retail market for both investors and tenants," says Mark Koenig of BT COMMERCIAL/Terranomics.
Other projects
Other major construction projects slated to begin this year include work on the Santa Rosa Junior College library and Sonoma State University's Green Music Center and recreation hall. Santa Rosa City Schools plans construction at several of its campuses. But worries about operational funding of the new facilities have been stalling school bond construction projects generally, according to Alan Butler of TLCD Architecture.
Further widening of U.S. 101 and county infrastructure projects in the Santa Rosa Plain this year will be dependent upon reduction of the state budget deficit and resolution of the California tiger salamander endangered species listing.
### |
 |
|
|
