The Retail Thread

[Dougall5505]

new 4 story office building looks pretty weak http://www.portlandonline.com/bds/index.cfm?a=163756&c=42264

[360Rich]

I finally made it out to Cascade Station last night, and was pleasantly surprised.

I really don't think the MAX stop placement is as bad as it has been made out to be, or that the development is unwalkable. We'll see if my perception changes as build out occurs.

[MarkDaMan]

Busy Cascade Station awaits flow of retailers
Portland Business Journal - August 17, 2007
by Wendy Culverwell

Between shoppers clamoring for Ikea and frenetic construction crews working on the remainder of the new retail complex, Cascade Station is pretty noisy these days.

It's a far cry from the quiet that greeted passersby in the years that followed the ill-timed debut of the Cascade MAX stop, which opened on Sept. 10, 2001.

The new MAX line was supposed to energize the 120-acre development zone at Portland International Airport. Instead, it languished, partly due to a sluggish economy and partly due to conflicting ideas about what should be built on a site so close to the airport.

Today, however, Cascade Station, located near the airport, is on the cusp of becoming one of Oregon's largest shopping destinations. The highly touted Ikea store opening last month was just the opening shot.

Dozens of retailers are set to join Ikea in the coming months. Two already have -- Golfsmith and Best Buy. In addition to retail space, at least three hotels, a gas station and two office buildings are planned or in construction.

By opening early, Ikea is cast in the same role Crate & Barrel played when it opened ahead of its neighbors at Tualatin's Bridgeport Village nearly three years ago.

Just as Crate & Barrel proved Bridgeport Village would attract shoppers, Ikea has shown that Cascade Station has drawing power.

Cascade Station and Bridgeport Village have a common parent in CenterCal Properties LLC, a local developer backed by the California State Teachers Retirement System.

CenterCal teamed with Trammell Crow Corp. on Cascade Station and will eventually buy out its interest for a price that hasn't been determined.

The project includes 800,000 square feet of retail space as well as new offices, hotels and a gas station.

Ikea attracted attention, but Cascade Station didn't need help attracting retailers, said Fred Bruning, president of CenterCal. Cascade Station was 92 percent leased before Ikea threw its doors open on July 25.

But its successful opening helped dislodge lingering doubts about Cascade Station's viability.

"There are far fewer disbelievers now," he said.

Golfsmith sells golf and tennis items and debuted in Oregon earlier this summer when it opened a store in Beaverton.

It celebrated its new 16,000-square-foot store opening at Cascade Station store Aug. 10. General Manager James Kosek said the store is a success, though the opening is somewhat marred by temporary parking challenges,.

With construction ongoing in neighboring spaces, access to Golfsmith's parking spots is restricted. Despite the best efforts of security officers, Ikea shoppers sneak in. Kosek expects the situation to right itself when construction wraps up and the shopping center formally opens this fall.

Austin, Texas-based Golfsmith became a publicly traded company in 2006 and has been opening new "superstores" around the country ever since. Kosek said Cascade Station was a natural for the growing chain.

Other businesses also see potential.

Aloft Portland, a 136-room hotel, broke ground in June and is being developed by Harold Pollin, who owns the Sheraton Portland Airport Hotel and Starwood Hotels and Resorts. Aloft is set to open next summer.

The city of Portland is reviewing two additional hotel projects for Cascade Station. Trammell Crow is also preparing to build two Class A office buildings, said Trevor Kafoury, a broker with CB Richard Ellis who is working on office leasing at Cascade Station.

Trammell Crow is negotiating with a tenant for the small building but will construct the larger one without a signed tenant.

"We do have significant interest," said Kafoury, who noted that most larger cities have significant office complexes around their airports.

The time is right for Portland to develop one and the flowering of a retail complex with restaurants and hotels makes it a natural time to move forward.

"There's great momentum right now," he said.

Perhaps no one is happier right now about the revived fortunes of Cascade Station than Bruce Allen, who manages the Airport Way urban renewal area for the Portland Development Commission.

PDC contributed funds for road construction and the new light-rail line, only to see Cascade Station sit empty for six years. PDC retains development rights for 36 acres and expects to develop 200,000 square feet of office space in the not-too-distant future.

"Once the construction dust settles, people will see it's quite the environment out there," Allen said.

wculverwell@bizjournals.com | 503-219-3415

http://portland.bizjournals.com/portland/stories/2007/08/20/story6.html?t=printable

[bvpcvm]

we went to ikea on sunday (for the, um, *third* time) and were shocked to see that they're still having most people park in the overflow field, AND we still couldn't squeeze into the cafe, it was so packed - three weeks after opening! i think ikea must be quite happy with their sales figures.

[MarkDaMan]

^I've been back three times two...the last time to return a pillow, and even though their sign says they don't take bedding and pillows back, they did...I also had to wait 50 MINUTES! Then another 30 minutes in line to eat at their restaurant, than another 15 minutes to check out. Out of the three times I've been there, I'd bet I've spent well over three hours just waiting in lines like the place is Disneyland! I agree bvpcvm, the place hasn't slowed down one bit, in fact, it was busier last weekend when I was back in town for a few days than when I went on opening weekend...incredible.

[zilfondel]

If I had money and an actual need for new furniture, I'd be back!

[PacificNW]

This has got to be a great time of the year for IKEA with college students heading to their respective campus first stopping/purchasing @ IKEA.

[Mike K.]

Discuss new retail digs, rumors and retail goings-on in this thread :)

[brandonpdx]

It looks like someone finally leased the space on 11th & Burnside and they're currently working on it. Does anyone know what is going in there?

[Okstate]

This new thread made me wonder if the Eddie Bauer store is still slated to open in the Metropolitan? I think that's correct anyway.

[pdxman]

^^^Yes, Eddie Bauer is going in the metropolitan. Glad to hear that spot on burnside is being filled. I'm thinking maybe it will be one the new retail locations for that high-end outdoor, uber-earth friendly NAU store. I read in the oregonian a few days ago that they were scoping a spot on burnside to put a store. Who knows tho...

[downtownpdx]

I read another article in The Oregonian a few days ago about a wool-clothing company relocating its headquarters to Portland, and they would also be opening retail space along West Burnside. Forgot the name of the company, but it wasn't Nau...something else.

[PacificNW]

It is a company headquartered out of New Zealand.

New Zealand clothing company moving U.S. offices to Portland
09:53 AM PDT on Thursday, September 13, 2007
Associated Press
PORTLAND, Ore. -- New Zealand outdoor clothing company Icebreaker is moving its U.S. headquarters to Portland.


Troy Ballard, president of Icebreaker's U.S. business, said Wednesday that the company is growing, and it wanted access to the city's local talent and the outdoor and lifestyle sensibility that matches its brand.


"Portland is a pretty compelling community to base an active athletic company," he said.


Icebreaker put a design team in Portland about six months ago but has kept its U.S. operations in Ketchum, Idaho, where it opened three years ago. The 20 Idaho staff members will be given the opportunity to relocate.


The company does not release sales figures but said the move is intended to accommodate continued growth.


Icebreaker manufactures luxury performance products from underlayers to coats primarily using New Zealand merino wool.


Their homepage: http://www.icebreaker.com/site/home.html?id=dwMSy6Mg:68.116.59.117

[brandonpdx]

Nau is going in on 23rd & Johnson where the thrift store used to be.

[IHEARTPDX]

Nau is going in on 23rd & Johnson where the thrift store used to be.

Are you sure about that? A dance/exercise studio just opened up in that space a few weeks ago.

[downtownpdx]

I read the same thing, although I've seen the dance studio there, too. I thought there were plans to renovate that building? Music Millenium was also at 23rd and Johnson...maybe that's the spot Nau is looking at.

[brandonpdx]

Are you sure about that? A dance/exercise studio just opened up in that space a few weeks ago.

yea, I talked to some people from Nau and they said they're going in across the street from Music Millenium, on the same side of the street where the thrift store was.

[bvpcvm]

something called "AS Interiors" (?) is moving in to the bottom floor of the galleria, on the 10th/morrison corner. anyone have any idea what that is?

[downtownpdx]

I think it's called AM Living, and the signs I've seen on the windows make it sound like an interior/home design shop with antique-type of stuff. It seems like it will be a nice store, and definitely a welcome retail presence along that stretch of the MAX and streetcar lines. It'll be right next to the new Brooks Bros. store along Morrison St.

[PacificNW]

While visiting Portland, a couple Monday's ago, I visited downtown Macy's, checked out all the transit mall construction; purchased some RAM for my Powerbook; and then checked out Ikea. Wow, the place was packed. The only other Ikea I have ever been too was their location in Renton. The one at Cascade Station is definitely a few steps up for your shopping experience. The parking lot was equally full of Washington/Oregon State license plates. I saw a lot of people utilizing the MAX, also.

Although I am not a fan of this overall type of "lifestyle" environment I have to say Cascade Station is going to be huge once it's completed. They are going crazy with all the construction out there.

I drove south on I 205, on my way back to I 5 to return to Florence. Lots of light rail construction happening. I stopped at Clackamas T.C. to visit some friends. That mall is going through a huge updating/construction phase.

I have lost touch with reality while living in Florence. A lot of construction is going on in Portland!

[SpongeG]

we saw that store - it looked cool

was there the day that the new Broosk Brothers Store opened up - never went in but looked nice

what used to be in that building?

reminds me of the bay dept store in Vancouver (BC)

cool use of the building though

[PacificNW]

⬆ Facts:

- The Galleria was the first department store in the Northwest to take up an entire block.
- The third floor sky-bridge connects with the adjacent parking garage.
- The local supervising architect was A. E. Doyle.
- The building has been listed in the National Register of Historic Places since February 20, 1991.
- The structure sits on top of a full-block site.
- Initially opened as the Olds, Wortman and King Department Store.
- Naito Properties acquired the completely vacant structure in 1972.
- The upper floors were converted from retail space to offices during the mid-1980s.
- In 1978, the Galleria won the "First Honor Award" from the Downtown Development Award.
- In 1976, the Galleria won "Award of Merit" award from the AIA, Portland Chapter.
- About $7,000,000 was spent on improvements in 2003.

[dkealoha]

There is a coffee shop opening on the corner of the Casey. I don't remember the name.

Also, there is a sign up in that corner commercial unit next to Baja Fresh on burnside and 11th. Ice Breakers? It looked to be some kind of clothing store. Does anyone know?

[pdxman]

^^^Yes, its that new outdoor clothing company from New Zealand. They specialize in wool clothing.

[SpongeG]

⬆ Facts:

- The Galleria was the first department store in the Northwest to take up an entire block.
- The third floor sky-bridge connects with the adjacent parking garage.
- The local supervising architect was A. E. Doyle.
- The building has been listed in the National Register of Historic Places since February 20, 1991.
- The structure sits on top of a full-block site.
- Initially opened as the Olds, Wortman and King Department Store.
- Naito Properties acquired the completely vacant structure in 1972.
- The upper floors were converted from retail space to offices during the mid-1980s.
- In 1978, the Galleria won the "First Honor Award" from the Downtown Development Award.
- In 1976, the Galleria won "Award of Merit" award from the AIA, Portland Chapter.
- About $7,000,000 was spent on improvements in 2003.

ah cool thanks

we thought it looked like it must have been a department store at some point

[bvpcvm]

Also, there is a sign up in that corner commercial unit next to Baja Fresh on burnside and 11th. Ice Breakers? It looked to be some kind of clothing store. Does anyone know?


why in the world did it take seven years to lease this space??

[PacificNW]

⬆ Has the Brewery Blocks development been around for 7 years? Gad! How time flies...

[MarkDaMan]

Icebreaker relocation heats up apparel scene
Portland Business Journal - by Robin J. Moody Business Journal staff writer
Cathy Cheney | Portland Business Journal

Icebreaker is warming to Portland.

After locating an expanded global design center here in January 2007, leaders at the New Zealand-based purveyor of merino wool sports apparel will move the company's U.S. headquarters to Portland from Idaho.

"It's not easy to build a high-talent team in a town with only one flight in a day," said Icebreaker CEO Jeremy Moon of his decision to relocate U.S. headquarters from Ketchum, Idaho.

The move to Icebreaker's new headquarters office in the Pearl District will be final in mid-2008, when about 12 employees from Idaho will join the 20-plus person work force in Portland.

The $100 million company is looking to buy a permanent headquarters building that could ultimately house 80 workers. It employs 200 workers worldwide, including about 50 in the United States.

Icebreaker is also opening its first U.S. store, at 1109 W. Burnside, on Dec. 4. The 2,600-square-foot Touch Lab will showcase the company's full line of high-end garments, spun from soft wool of merino sheep, raised in the Southern Alps of New Zealand. Products include leggings, T-shirts, sweaters and base layers; retail prices range from $50 to $200.

The company operates six other retail stores globally, including in England and New Zealand, but most of its sales come from the 2,000 outdoor stores worldwide where Icebreaker garments are sold.

Kortni Henke, the soft goods buyer for the Mountain Shop in Northeast Portland, told the Business Journal in January the she had started carrying the Icebreaker line two years ago, and has increased orders over time.

"It's done really well for us," said Henke. "We were nervous about how well it could be received at first, though, because of how expensive it is."

Icebreaker entered the U.S. market three years ago, and sales here comprise about 15 percent of the company's revenue. Moon predicts U.S. sales will grow to 35 percent of revenue in another three years. Icebreaker's U.S. President Troy Ballard left the company in September, and the company is looking for a new stateside boss.

A local designer with experience at Nike Inc., Sandy Larowe, is heading up the Portland design center and serves as Icebreaker's vice president of product design. Designers in the Portland office will collaborate with another smaller design office in Wellington, New Zealand, where Icebreakers is headquartered.

Moon leads a design collaborative in New Zealand, Better by Design, that helps businesses use design as a central competitive strategy. Integrating design into all facets on the business is one of Moon's key business philosophies, and he hopes Icebreaker's expanded design department will speed innovation.

"It's not that hard to run the finances and logistics," Moon said. "What's hard is strengthening design and innovation."

Moon, 38, founded Icebreaker in 1994. The company originally sold just underwear, but branched into apparel about two years after it was founded.

The company has a strong sustainability streak. It pays New Zealand merino wool farmers premium prices for a guaranteed supply of the soft wool in exchange for the farmers' agreeing to strict environmental and animal-welfare standards. Icebreaker is the largest purchaser of New Zealand merino wool, and recently inked a $50 million, four-year contract with wool producers there.

Most activewear is make from petrol-based fabrics, which are generally nonbiodegradable and over time take on odors that can't be washed away.

Icebreaker also operates offices in Melbourne, Australia; Vancouver, British Columbia; and Hamburg, Germany.

rmoody@bizjournals.com | 503-219-3438
http://portland.bizjournals.com/portland/stories/2007/11/19/story5.html?t=printable

[MarkDaMan]

Rents are rising, space is dwindling -- some areas are 'on fire'
Retail revival
Portland Business Journal - by Wendy Culverwell Business Journal staff writer

With national retailers such as Kohl's, Crate & Barrel and Ikea pressing into the Portland market, retail occupancy rates are rising and rents are going along for the ride.

The one-two combination of low vacancy rates and rising rents is attracting investors and helping previously overlooked neighborhoods recruit new retailers.

Marcus & Millichap Real Estate Investment Services projects Portland retail rents will rise 3.6 percent to an average of $19.70 per square foot. The overall vacancy rate for Metro Portland is just under 4.5 percent, with the lowest rates posted in downtown Portland (2.16 percent) and the highest in Gresham (6.8 percent).

Brokers say retailers coming off longer-term leases of five to 10 years can expect a much larger jump if they want to stay in the same place -- as much as 20 percent.

It's all about supply, which hasn't kept up with demand despite the collective addition of more than 1 million square feet of new retail space at Clackamas Town Center and Ikea-anchored Cascade Station, according to brokers who specialize in retail space.

"We still have a limited supply," said Dean Wier, a broker specializing in retail space at Norris & Stevens Inc., a Portland commercial real estate firm.

Wier attributes the rise in demand to expanding national retailers and a push from new franchise owners to bring new concepts to the market.

Wier is counseling clients to expect rent increases of 3 to 5 percent. Portland continues to attract retailers because of its low cost of living relative to other cities, and the West Coast in particular.

"We're still a bargain," he said.

CB Richard Ellis reported net absorption of more than 450,000 square feet of retail space in the Portland area at the end of the third quarter. That translates to about 1 percent of the total 44.5 million square feet of retail space.

An estimated 1.5 million square feet is in construction, more than a third of it near Portland International Airport, where the 280,000-square-foot Ikea is anchoring the new Cascade Station. Clackamas Town Center recently completed its own remodel, which included 250,000 square feet of new space.

Pressing demand benefits marginal districts, said Craig Sweitzer, principal for Urban Works Real Estate, which represents retail space in the Pearl District and the South Waterfront as well as in and around downtown Portland.

High occupancy rates are good for property owners and compel some retailers to move into secondary districts, he said, citing inner Southeast Portland. New buildings and retail space are being built outside the traditional hot belt running between Southeast 30th and 39th streets.

"Inner Belmont and Morrison are on fire," Sweitzer said.

Like Wier, Sweitzer is counseling tenants to expect rent increases when their existing leases expire. For long-term tenants, the hikes can be significant. A retailer coming off a five-year lease can expect a 5 to 10 percent bump in rents. For one coming off a 10-year lease, that could double to 20 percent.

"The market has so matured," he said.

In the Pearl District, where retail space leased for $19 or so a square foot just 10 years ago, landlords can easily command rents in the $30 and over range. Other urban neighborhoods have followed the same path, with rents rising from the low teens to the mid $20s.

Investors have noticed the solid performance, said Michael Kapnick, senior investment associate with Marcus & Millichap's Portland office. The firm specializes in investment sales.

"Retail remains the darling of real estate investors," he said.

Investors are willing to take low returns to acquire well-situated retail real estate, Kapnick said. In Portland, a well-leased building in a solid location would sell with a capitalization rate of about 6.5 percent, referring to the rate of return on the investment. Trophy properties might command a lower rate while properties needing work might go for 7 percent.

Kapnick said a mix of buyers drives demand. So-called 1031 buyers -- investors looking to avoid capital gains taxes by reinvesting real estate profits -- continue to dominate the field.

And though there is considerable turmoil in the capital markets, Kapnick said it hasn't had a negative impact on sales, yet.

"We've seen life insurance companies and even local banks step up and fill the void that a lot of the conduit lenders left," he said. "I haven't seen deals failing because of an inability to get financing."

wculverwell@bizjournals.com | 503-219-3415

http://portland.bizjournals.com/portland/stories/2007/12/03/story3.html?t=printable

[downtownpdx]

The Casey's corner street-level space is now Caffe Umbria -- just went by today and it looks pretty cool inside. It didn't come across as an overly trendy, "see-and-be-seen" spot that can dominate the Pearl District, but just a cute, cozy cafe.

Also, walked by the corner of Park and Alder and noticed the space that used to hold Broadway Bagels is undergoing renovations. This downtown corner has been empty for quite a while, and it'll be nice to see what the redevelopment brings. Unfortunately, looked like the two neighboring storefronts, a bead shop and a sub sandwich shop, closed and are having their walls torn out to join the new space. I just think it's too bad b/c I'd rather see like 5 or 6 retailers lining a block, rather than just 2 or 3 -- gives the area more vibrancy and diversity. Not groundbreaking news :), but just thought I'd post this because I walk by this area almost every day, and wondered what was holding back the retail on a pretty well-traveled block. Should be nice when it's done.

[SpongeG]

i guess the Ruehl store has opened now in Washington Square? it was set to open in December

they got one before Seattle did!

[pdxman]

ugh washington square...

[Dougall5505]

NW 14th and Overton
http://www.portlandonline.com/shared/cfm/image.cfm?id=177677
Proposal:The applicant is requesting Design Review approval for a warehouse renovation, which will include a new façade along the NW 14th and Overton Street frontages. The current use of the structure is a recycling plant, the proposed new use will be retail commercial. No alteration is proposed to the footprint or height of the building. A mezzanine will be added to the interior for mechanical and circulation needs. Concurrent with the proposal will be new sidewalk treatment along the perimeter of the site to meet PDOT River District Right of Way standards. The applicant proposes a new glass base to cornice storefront walls, new metal roofing, corner- oriented retail entrance, and full seismic upgrade. The color proposed for all window frames and storefront frames is silver anodized finish. All glass is proposed to be clear low e-glass. Structural bays at each end of each façade will be polished face concrete masonry units.


http://farm3.static.flickr.com/2181/2114274452_d193813140_o.png

http://farm3.static.flickr.com/2227/2114274404_c0365fa847_o.png http://farm3.static.flickr.com/2358/2113496565_4cca76484c_o.png

[PacificNW]

⤉ I like it so far....

[MarkDaMan]

New numbers prove that Portland lacks retail space
Portland Business Journal - by Wendy Culverwell Business Journal staff writer

It would take nearly two additional Washington Square malls to bring the Portland area up to the national average for shopping center space.

Local civic and business leaders, not to mention commercial real estate brokers, have long observed that Portland has fewer shopping outlets than comparable cities.

Now, Cushman & Wakefield Inc. has the numbers to back it up.

Based on the current population of the greater Portland area, including Vancouver, Portland needs 2.4 million additional square feet of shopping space just to catch up with the national average.

The brokerage house found that metro Portland has about 9.8 feet per square feet of retail space per resident, 1.1 square feet below the average of 10.9 square feet.

The deficit certainly helps explain the spate of major retail developments popping up across the region.

CenterCal Properties has plans for a 650,000-square-foot shopping center at Oregon City, while the aging mall in Vancouver is getting a facelift. A team of Portland developers has acquired Evergreen Field and will transform the old airstrip into a major retail center.

Clackamas Town Center recently completed a 250,000-square-foot expansion while the Ikea-anchored Cascade Station center is nearing completion at Portland International Airport, and Washington Square added 100,000 square feet of new space less than two years ago.

At 1.3 million square feet, Washington Square represents a little more than half the theoretical missing space.

Factor in the number of people expected to move to the area by 2012 and the shortage gets worse: Forecasters estimate 145,000 new residents in the metro area by 2012. They'll support an additional 1.5 million square feet of retail space.

Matt Johnson, a research associate at Cushman & Wakefield, said the figures represent neighborhood and community shopping centers, where the vast majority of spending takes place. It doesn't necessarily include mom-and-pop type locations.

"We're definitely underserved," said Lisa Fisher, a director in the Cushman & Wakefield office who works with retail customers.

Fisher and partner Anne Hecht agree the shortage is especially obvious with national retailers who have begun to notice to Portland's above-average population of 25- to 34-year-old creative class residents with high-spending lifestyles to maintain.

"There are some new national retailers that are considering Portland," Hecht said.

Strike Holdings LLC, a New York-based entertainment concept built around upscale bowling, is a client in search of the right location to set up shop in Portland.

The company needs 30,000 to 40,000 square feet for its luxury bowling centers.

"If they were to try to come here to land today, it would be hard for them to find everything to fit their criteria," Hecht said.

Instead, Strike is looking to new development and won't arrive for at least two to three years, she said.

"Its the old story that they can't find a large enough floor plate," she said.

wculverwell@bizjournals.com | 503-219-3415
http://portland.bizjournals.com/portland/stories/2008/02/25/story11.html?t=printable

[MarkDaMan]

I don't know who or what this is, but maybe someone here does and is interested?

Retail news

* Luxury retailer Kate Spade will open its debut Northwest store in Pioneer Place on May 14. The 1,447-square-foot store will be on the street level of the downtown Portland shopping center's Atrium Pavilion. It will feature all Kate Spade lines.
http://portland.bizjournals.com/portland/stories/2008/02/25/story12.html

[downtownpdx]

The upscale local clothing shop Mercantile just re-opened on the corner of Park and Alder downtown, after moving from the future Park Ave. West tower block. According to portlandalliance.com, it's 7,000 sq. feet and designed by Ankrom-Moison. This corner is way improved from the Broadway Bagels days, at least visually...pretty swanky looking now.

With the Cornelius (Alder Park) Hotel redevelopment across the street soon, along with all the other nearby construction, the 'Midtown Park Blocks' is getting some much-needed TLC. I love the narrow, European-feel of these streets.

[RED_PDXer]

New numbers prove that Portland lacks retail space

It would take nearly two additional Washington Square malls to bring the Portland area up to the national average for shopping center space...

Strike Holdings LLC, a New York-based entertainment concept built around upscale bowling, is a client in search of the right location to set up shop in Portland.

The company needs 30,000 to 40,000 square feet for its luxury bowling centers.

"If they were to try to come here to land today, it would be hard for them to find everything to fit their criteria," Hecht said.

Instead, Strike is looking to new development and won't arrive for at least two to three years, she said.

"Its the old story that they can't find a large enough floor plate," she said.

wculverwell@bizjournals.com | 503-219-3415
http://portland.bizjournals.com/portland/stories/2008/02/25/story11.html?t=printable

God.. we don't two more Washington Squares. We need one less. I strategically avoid the shopping centers we DO have. They say we have a "shortage". What a joke.

It's places like "Strike" that make me avoid such locations. They have their "criteria" that they push for regardless of the local market. Why don't they try looking at what makes Portland tick and who these people living here are instead of just looking for demographics and $$ and pushing their floorplates on us. Sorry for the rant. I hate only the vast majority of corporate retailers.

[zilfondel]

Ironically, we have that new huge bowling arena that just opened up on Belmont. I think they have what, 24 lanes or something?

Too bad I loathe bowling. Oh wait, no it's not! :P


==================

Why don't they try looking at what makes Portland tick and who these people living here are instead of just looking for demographics and $$ and pushing their floorplates on us. Sorry for the rant. I hate only the vast majority of corporate retailers.

Funny that I didn't hear this argument when plans for the new Neiman Marcus and H&M were rolled out...
Hell, the Rudy's barbershops, which I really like, is a Seattle import. :yuck: (just kidding)

[pdxman]

Neiman Marcus?? Wha? I haven't heard about that.

[zilfondel]

^ Just a rumor I heard from other people on this board. I guess its not happening after all?

Oh well, me and my failing memory!

I just think its funny when people promote one chain over another. Sort of like.. IKEA! (hey I love it - and despise other big-box)

I suppose its all part of what kind of quality we want here, although I would be 100% banning any store from having a footprint greater than 40,000 sq feet per level.

[sopdx]

There's a big difference in retail located in the city and in the suburbs. As downtown starts to pick up. I suspect we'll start to see more upscale retail moving in. Although there are currently no plans that have been made public about Neiman Marcus coming in. I'm sure we are on their radar and will be here within 5 years. Not sure if that's good or bad, I know I certainly can't afford shopping there.

[SpongeG]

I don't know who or what this is, but maybe someone here does and is interested?

Retail news

* Luxury retailer Kate Spade will open its debut Northwest store in Pioneer Place on May 14. The 1,447-square-foot store will be on the street level of the downtown Portland shopping center's Atrium Pavilion. It will feature all Kate Spade lines.
http://portland.bizjournals.com/portland/stories/2008/02/25/story12.html

kate spade is related to david spade

anyway she started out designing hand bags and now designs loads of things from hand bags, baby stuff, dishware, shoes, jewlery, perfume etc etc - all higher end yet quirky - cult following

her mens stuff is called Jack Spade

love her and her stuff

http://images.evalu8.org/images/kate-spade.jpg

[designpdx]

From kgw.com:

Columbia Sportswear re-opening downtown store

12:01 PM PDT on Thursday, April 10, 2008

By TERESA BLACKMAN, kgw.com Staff

Columbia Sportswear’s downtown flagship store is re-opening after a three-month closure for major remodeling.

“We are excited to offer Portland shoppers and area visitors a newly redesigned retail location that better reflects the evolution of the Columbia Sportswear brand, provides access to more of our products than anywhere else and offers an unrivaled outdoor shopping experience,” said Kerry Barnes, vice president of retail.

In addition, Mountain Hardwear Inc., is opening its first retail store on April 11th.

“The store will allow consumers to see the full extent of our product in an environment that represents our brand from entrance to check out,” said Mike Wallenfels, president of Mountain Hardwear and Montrail.

Since 2007, downtown Portland has experienced a significant investment by both local and national retailers, totaling nearly $193 million. This investment is also supported by the new $208 million transit mall and light rail project.

“Downtown Portland keeps getting better and better thanks to smart planning by our elected officials and ongoing efforts to recruit and retain local and national retailers,” said Sandra McDonough, President and CEO of the Portland Business Alliance. “It is our goal that this trend will continue as more retailers and restaurateurs look to downtown Portland as the market they need to be in.”

Columbia Sportswear will mark its grand re-opening with weekend festivities including a $500 shopping sprees and an appearance by NASCAR star Geoff Bodine.

Also as part of its grand reopening, Columbia Sportswear plans to donate 10 percent of all sales made between April 11 and 30 to Start Making A Reader Today also known as “SMART.”



From mountainhardware.com:

Press - Mountain Hardwear Opens First Flagship Store in Portland, Oregon

Breaking News from Mountain Hardwear

Mountain Hardwear Opens First Flagship Store in Portland, Oregon

Press Release

New retail location will showcase the Mountain Hardwear brand, the broad product range, innovation and local partnerships

RICHMOND, Calif. (April 10, 2008) – Mountain Hardwear Inc., a leading mountaineering, outdoor equipment and clothing company, today announced the opening of the company’s first retail store. Located in downtown Portland, Oregon, the 3,000-square-foot store showcases the largest selection of Mountain Hardwear apparel and equipment and Montrail footwear in the world.

“The store will allow consumers to see the full extent of our product in an environment that represents our brand from entrance to check out. In addition to being a dedicated mountaineering brand, we are also an active supporter of the environment, getting youth active, and mountain culture. Through promoting these values in the store, we believe that we can elevate our overall brand in this influential mountaineering market,” said Mike Wallenfels, president of Mountain Hardwear and Montrail.

As part of the opening celebration, Mountain Hardwear will donate 10 percent of sales for the entire month of April to Multnomah County’s Friends of Outdoor School, which supports week-long outdoor education camps for all sixth grader students in one of Oregon’s largest counties. In addition, Mountain Hardwear solo adventurer and big wall climber, Mike Libecki, and Montrail endurance runner, Matt Hart, will be in attendance to meet customers and host in-store presentations.

The store design, by Portland-based 2 Hemispheres, incorporates the building’s original wood floors and brick walls juxtaposing them with industrial style details and fixtures to enhance the Mountain Hardwear brand image. Included in the store is a resource center for customers including a comfortable meeting area and a computer kiosk with links to outdoor clubs and non-profit organizations. “Our vision for the Mountain Hardwear store is one where it becomes a meeting place for the local outdoor community as they prepare for their next adventure,” Wallenfels continued.

[MarkDaMan]

hmmm, just skimmed the article, but does it say where it is going to be located?

[PacificNW]

I think around the corner from Columbia Sportswear.....700 block of Taylor.

[pdxman]

:previous: Correct. The official address is 722 SW Taylor.

Check this site out for renderings of the store: http://blog.mountainhardwear.com/2008/04/mountain_hardwear_portland_sto.html

It's amazing to see what a hotbed portland is for outdoor stores. REI, Nau, Columbia, The North Face, Icebreaker, Mountain Hardwear, Patagonia plus the many other local outdoor specialist retailers. I know I'm missing another one...

[pdxman]

It looks like they will be putting in a Target at Cascade Station. A handful of office buildings also look to be going in as well as the Aloft Hotel and a Hyatt Hotel.
http://centercal.com/images/cascade/cascadestation_siteplan.jpg

[smendesPDX]

looks and feels like LA...although I love IKEA, I wish they got a little more creative and unique the for rest of the space.

http://i76.photobucket.com/albums/j15/jhstrackXY/cascade_lrg.jpg
This image from LNM Architects is what I hoped it would turn out like. Almost looks like an actual complete version of the Beaverton Round.

[pdxtraveler]

Glad to see Target, actually just glad to see they found a replacement for the Costco Home Store, I was wondering if things were going to stall. Hopefully they can fill more of the smaller spots that are still for lease along the park.

[Okstate]

That's one monstrous parking lot

[rsbear]

It oddly reminds me of the Empire Center in Burbank, but with light rail. I'm a realist so I understand the market wasn't/isn't there to support the high-density mixed-use development originally envisioned, but I'm really disappointed that a suburban shopping center will be visitor's first impression of Portland. And from Airport Way it will be the backside of a suburban shopping center, to boot. Ugh.

[pdxman]

I was under the impression that they couldn't put residential there because it was too close to the airport, not because of the market?? So, it would seem from the start that this was the only route they could take, tho they surely could've done a better job with the design and layout. I'm somewhat convinced that this whole development was built for people who live in washington anyways so maybe there was no hope.

[rsbear]

By mixed-use I meant more office and light industrial and some retail in a more new-urban environment - more of an employment center with good paying jobs plus a bit of retail, as opposed to a standard large suburban shopping center with relatively small amount of standard suburban office buildings. The only "residential" that was in the original concept, I believe, were hotels.

[pdxman]

^^^Understood :)

[smendesPDX]

I am an airplane enthusiast and would personally love to live by the airport. But we are a rare breed

[rsbear]

I am an airplane enthusiast and would personally love to live by the airport. But we are a rare breed

I am, too! I live south of the Burbank airport and am just close enough to have a good view as the planes take off, but just far enough away that the noise does not penetrate the inside of my home.

[alexjon]

I live under Sea-Tac's primary flight path-- it's awesome. When I flew in last month from a trip down to TX, I saw my apartment!

You get a good close view of the planes as they fly by

[tworivers]

I thought that I read somewhere awhile back that the Federal Gov't is planning on building in Cascade Station in a few years? Some sort of offices... maybe Homeland Security or something? Can't remember...

If they end up building a Walmart at Jantzen Beach, that'll really lend a lot to first impressions of PDX! Hooter's, parking lots, yeehaw.

[MarkDaMan]

^not sure if I was reading the same thing as you, but I read the metro post office and homeland security were looking at vacant land in the area for a joint project...I'm sure not in the same building.

There was some objection because it would eat up some of the urban renewal land, but some support because it would free up more valuable urban renewal land in the Pearl.

[360Rich]

I thought that I read somewhere awhile back that the Federal Gov't is planning on building in Cascade Station in a few years? Some sort of offices... maybe Homeland Security or something? Can't remember...

If they end up building a Walmart at Jantzen Beach, that'll really lend a lot to first impressions of PDX! Hooter's, parking lots, yeehaw.

I had forgotten about the GSA buying land at Cascade Station. You're right - here an article saying they're purchasing 8 acres.

http://findarticles.com/p/articles/mi_qn4184/is_20071026/ai_n21074702

And thankfully, now that Sam A is the mayor, I have a feeling we wont see Sam W at Jantzen Beach! :cool:

[Dougall5505]

650 parking spaces ugh
target: http://www.portlandonline.com/shared/cfm/image.cfm?id=199061

[urbanizer405]

It looks like they will be putting in a Target at Cascade Station. A handful of office buildings also look to be going in as well as the Aloft Hotel and a Hyatt Hotel.
http://centercal.com/images/cascade/cascadestation_siteplan.jpg

Huh, where did you find that? I'm also glad to see Target coming; so when will it open?

[RED_PDXer]

That's an insane amount of parking! Disappointing to see such low development intensity on the MAX line. At least we got a free MAX extension out of it...

[designpdx]

It also looks like they have a Residence Inn on that drawing. This is the first I have heard about that project. Nice to see more hotels close to the airport.

[Grant]

That's an insane amount of parking! Disappointing to see such low development intensity on the MAX line. At least we got a free MAX extension out of it...<p><p>

Yes, a "free MAX line"...for the low low cost of $23.8 million from the City (urban renewal), $28.3 million from the Port, $45.5 million from TriMet, and the opportunity cost of leasing hundreds of acres of prime industrial land to Bechtel, this Free MAX Line only cost taxpayers somthing in the 9 figure range. I love Airport MAX, but by no definition was it free.

[urbanizer405]

That's an insane amount of parking! Disappointing to see such low development intensity on the MAX line. At least we got a free MAX extension out of it...

I'm sure they could add more density above the parking lots in the future, if that time ever comes...

[RED_PDXer]

Oops, forgot about that.. hadn't looked at the finances in so long. in my experience parking lots of shopping centers rarely get redeveloped, except for more one-story, single-use, corporate tenants, like a drive-thru, bank, or coffee shop. The whole area will likely be bulldozed before any more density is added to those developed lots.

[pdxtraveler]

I am not convinced it will ever to too dense as it is directly under the flight path and VERY close to the end of the runway. You can wave at the passengers on the plane, you could probably recognize them if you were waiting for relatives!~

[alexjon]

I think the traffic headed to this may give a reason for the eastern leg Columbian Crossing of MAX.

Yay Red Line extension

[pdxtraveler]

I think the traffic headed to this may give a reason for the eastern leg Columbian Crossing of MAX.

Yay Red Line extension

I agree! Also there are so many people at Fisher's Landing etc Mill Plain etc in E. Vanc that it would be much quicker for them to cross the Glen Jackson (I-205) bridge on max and then down the blue line rather than through downtown vancouver and down the Interstate line.

[alexjon]

It's in the long-term, and it's something that's more or less agreed upon on both sides. The only problem MAX extension is the Yellow line, so this one may be a walk. Of course, it's behind the following projects:
-Green line
-Orange line
-Blue line extensions at both ends
-Yellow line by-pass

[sopdx]

Proposal and Property Information
Location: 610 SW Alder St.

Proposal: The proposal is to renovate the ground and second floor facades of the Oregon National building to accommodate 2-story retail use. Interior
renovation of the ground and second floors will be to accommodate a
new, single tenant for both of these floors. The building is on the
National Register.

Land Use Reviews Expected: A Type III Historic Design Review is required for proposals where the
value of the exterior improvements is greater than $348,450.
Site Zoning: CX d
Tax Account Number(s): R246313

[pdxman]

If thats the old Kitchen Kaboodle store then my guess is that it is for H&M, if they are still looking to come here. I REALLY hope this is for them! Looks like WW might be correct on yet another retail scoop.

[pdxtraveler]

I don't know think that is the Kitch Kaboodle space though. that is the base of a parking garage..so I don't think it would be called Oregon National. Hope I am wrong!

Looking at the street view on google it is the same intersection but think even is on the left side of street which would make it
Payless Shoes that is renovating.

[bvpcvm]

yeah, if you look in the drawings in the original announcement that sopdx pasted up at the top of the thread, there are drawings, and it's not that same garage, it's like across the street.

that garage location always seemed weird to me: second floor sounds risky given that most portlanders don't know the brand and a well-known local brand didn't last long there.

[urbanlife]

Oregon National is the building that Payless Shoes is in across the street from the garage.

[downtownpdx]

Is this the same building as Rite Aid? I wonder if that portion is undergoing the facelift also. I know that the PDC was looking at getting this building renovated in conjunction with the transit mall project.

H&M would be great ... but I've always thought that 2-level space on 4th, between Morrison and Alder (used to be a dance school?) would be a good location for them. Whatever, anywhere downtown would be great!

[bvpcvm]

check google street view. it is the site of both rite aid and payless shoes. whatever goes in there (see drawing here (http://www.portlandonline.com/shared/cfm/image.cfm?id=200148)), it'll be an improvement.

[MarkDaMan]

I think, downtownpdx, that the two story space you are talking about (famous footwear, right?) will make a GREAT space for a national retailer.

I can't imagine that Payless Shoe Source would be in that spot referenced after a remodel that opened up the second floor. If not H&M...who?

[downtownpdx]

bvpcvm, thanks for the drawing link! It looks like the renovation, along the 6th Ave. side, extends into the Rite Aid space? Maybe it's just the Payless space, but Rite Aid needs some major TLC ... those awnings, frontage, etc. are horrific and really seem to encourage the panhandling that goes on. Just a dark section of the block. When this project, The Nines and the transit mall wrap up, this corner of downtown will feel a whole lot different.

[pdxtraveler]

I think, downtownpdx, that the two story space you are talking about (famous footwear, right?) will make a GREAT space for a national retailer.

I can't imagine that Payless Shoe Source would be in that spot referenced after a remodel that opened up the second floor. If not H&M...who?

I agree with both of you, this is one of my favorite spaces downtown. It has the great marquee as well.

[urbanlife]

it looks like it would only be half of a Rite Aid upgrade, because the other half of that store on Alder is a different building. Kind of like the renovation that is happening to half of Ross's exterior.

[pdxman]

I just read a rumor about H&M on another blog so it might be false but it said that H&M might be going in at Bridgeport in the summer of '09. If it is true that would be sad to lose out on a good retailer to the 'burbs :(

Edit: Also just found a recent O piece on the proposed Rivers of Oregon City "lifestyle center" that lists H&M as a prospective tenant.
http://www.oregonlive.com/metrosouth/oregonian/index.ssf?/base/metro_south_news/1213491315313380.xml&coll=7&thispage=2

[PacificNW]

I don't think that necessarily means they won't put a store downtown. They are opening multiple locations in Seattle/burbs, also.

[downtownpdx]

Mark, you're right that space is perfect for a national retailer ... I really wonder what keeps it empty? I would think people would be salivating over that spot!

Those rumors of a suburban location -- not OK! Does anyone know if Seattle has one downtown? ... just curious b/c I read an ad in Seattle Magazine recently advertising an H&M opening soon in the Southcenter mall. So if that's their first Puget Sound location, then maybe they'll do the same dumb kind of suburban debut here. Oh well, it's a great store and anywhere would be good, but I hate to see it by-pass downtown for Tualatin, ugh.

[downtownpdx]

I don't think that necessarily means they won't put a store downtown. They are opening multiple locations in Seattle/burbs, also.

Just posted my question, and then caught your post -- so they have one in downtown Seattle? There's hope.

[PacificNW]

From the Seattle Times:


Wednesday, April 30, 2008 - Page updated at 07:14 AM


NATALIE BEHRING / BLOOMBERG NEWS
A woman tries on sunglasses at a newly opened H&M store in Shanghai, China, earlier this month. Three area stores will open soon and more look likely, particularly for the Eastside.

H&M readies first local stores, plans for more

By Amy Martinez
Seattle Times business reporter
For years, price-minded fashionistas in the Seattle area could only watch as trendy retailer H&M expanded across the U.S. But that's about to change as H&M prepares for three area openings this year, with more stores likely.

"I don't think we'll stop with three," New York-based spokeswoman Lisa Sandberg said Tuesday while visiting Seattle. "There's definitely room for expansion."

As previously announced, H&M will open at Westfield Shoppingtown Southcenter, University Village and downtown Seattle. The store in Southcenter mall opens in the summer, followed by the others this fall.

Although Sandberg said it's too soon to say where the retailer might put additional stores, real-estate analysts speculate that it will end up somewhere on the Eastside.

"They'll open enough stores to cover their advertising and make it worth their while, and see how it goes from there," said Krista Haverly, a real-estate broker who specializes in retail for CB Richard Ellis.

Based in Sweden, H&M has been called the fashion world's equivalent of Ikea because it sells trendy-yet-inexpensive clothes under its own labels. Prices start at $6 for T-shirts, $30 for jeans and $40 for blazers.

H&M (formally Hennes & Mauritz) made its U.S. debut in 2000 in New York and will have 148 stores nationwide after an opening this week in Glendale, Calif.

Locally, H&M will occupy 25,000 square feet at Southcenter, 19,000 square feet at University Village and 16,000 square feet at downtown's 520 Pike Tower.

Details are still being worked out, but Sandberg said H&M has decided to make the Southcenter location a "full-concept" store, meaning it will sell clothing and accessories for women, men, teens and children.

The other two probably will focus on a few segments, such as teens (both genders) and women.

Merchandisers in New York will supply the Seattle-area stores so that shoppers locally will be exposed to the same trends as those in, say, Southern California and Northern Virginia.

"Usually, 85 percent of what we offer in any store is the same," Sandberg said. "We have a global vision of who our core customer is."

Elizabeth Best, a broker specializing in retail properties with Seattle Pacific Realty in Seattle, said H&M will compete with Banana Republic, Express and Forever 21.

"It's a treasure hunt for the person with discretionary income, and a fashion savior for the person who's budget-crunched," Best said.

H&M will open a store in Vancouver, B.C., on May 22.

Jennifer Reyes, who works downtown, has shopped at H&M while visiting relatives in San Francisco.

"It's not Nordstrom-quality, but it's not cheap, either," Reyes said. "I'm just worried about going nuts the first week they're open."

Amy Martinez: 206-464-2923 or amartinez@seattletimes.com

Copyright © 2008 The Seattle Times Company

[Downtown_Gal]

Does anyone know what store will be going into Pioneer Place now that the Sharper Image is gone?

[pdxman]

I believe its Juicy Couture. http://www.juicycouture.com/ Another high end boutique of sorts.

[dkealoha]

I believe its Juicy Couture. http://www.juicycouture.com/ Another high end boutique of sorts.

I think Juicy Couture is going into a different space that is all blocked off with a big sign.

[Downtown_Gal]

Juicy is already open in another spot. As is the new Bestey Johnson store.

[downtownpdx]

I would hope an H&M maybe :) ... but that space is way too small. I'd rather H&M open somewhere outside the mall, anyway, like on 4th betw. Morrison and Alder (formerly Famous Footwear).

[2oh1]

Any updates on Cascade Station? I read that a Target is coming - but when? I'll be glad to have them on a MAX line. Aside from Ikea and Best Buy, what else has opened or is on the way?

[CouvScott]

Any updates on Cascade Station? I read that a Target is coming - but when? I'll be glad to have them on a MAX line. Aside from Ikea and Best Buy, what else has opened or is on the way?

I just passed by that site today and the Target site is in the excavation stage.

[tworivers]

Cascade Station office park takes off
The first office tenants move in at development near airport this week

POSTED: 04:00 AM PDT Tuesday, September 2, 2008
BY LIBBY TUCKER
DJC

Cascade Station’s first hotel and office building are nearly complete, and the final round of construction on the 86-acre development near Portland International Airport has begun on four buildings: hotels for Hyatt Place and Residence Inn, an office building and a Target super center.

It’s been a little over a year since IKEA opened its doors at the site near Interstate 205. And the retail behemoth has since attracted a slew of other large stores, spurring the next round of development – hotels and office buildings.

What was once a vacant lot near a desolate MAX light-rail station in the shadow of PDX has become a buzzing destination for shoppers. Now developer Trammell Crow hopes to add office workers and hotel guests to the mix.

ITT Educational Services’ Technical Institute will move into its new 35,000-square-foot office building at the site this week. And aloft, a 136-room, Westin brand hotel, will open in two weeks.

The Portland Development Commission also has two projects in the early development stages under way for its adjacent 36-acre property at Cascade Station.

In early August, PDC signed an agreement with Canterbury Group for an 85- to 100-room upscale hotel brand, yet to be determined. The hotel will be built on one of four parcels owned by PDC, with development costs expected to run about $100,000 per room, said Bruce Allen, senior development manager for the PDC.

The federal General Services Administration will also soon select a developer to build a new 130,000-square-foot facility for the Federal Bureau of Investigation on property leased by the PDC at Cascade Station. The contract will be finalized in January.

In all, the PDC calculates about $350 million of projects are approved and under way at Cascade Station, not including the most recent contract signed with Canterbury Group for a fourth hotel at the site. And development at the site is expected to exceed $1 billion when it’s complete within the next few years, according to the PDC.

“It’s safe to say it’s more successful than we imagined,” said Allen. “We knew IKEA would be the key and bring in the retailers. Most are experiencing above-expected sales and when the hotels open, we’ll see how strong they are.”

Plans for Cascade Station first took shape in 1997 with a public-private partnership between PDC, Bechtel and Trammell Crow to build the MAX line to the airport. The line opened on Sept. 10, 2001, and the site languished after the Sept. 11 terrorist attacks.

Trammell Crow bought Bechtel’s share of the property in 2006 and asked the city to rezone the property to allow for more anchor retail tenants. Shortly after, they inked a deal with IKEA, and a flood of other retailers followed. They included Best Buy, Ross, and Marshall’s department store. The retail space is now 90 percent leased, according to Trammell Crow.

“I’m noticing an increasing demand for office space out there since IKEA was completed,” said Jennifer Medak, a commercial real estate broker with Norris Beggs & Simpson, which handles properties on Airport Way near Cascade Station.

The shops and restaurants give office workers a place to get coffee, run errands and eat lunch, which in the end was more important than light-rail access, she said.

Cascade Station also faces little competition for office tenants – few options for true office space exist along Airport Way, said Medak. The closest comparable office markets are Clackamas to the south and Portland’s Hollywood District to the west. And with the going rate for class-A space near the airport at $21 to $25 per square foot, Airport Way offices provide a cheaper alternative to downtown space that rents for $23 to $35 per square foot, said Medak.

“They won’t have any problem filling those buildings,” said Medak. “There hasn’t been product to absorb that demand yet.”

Last week general contractor Skanska USA began laying the foundation for a second office building on the site directly east of ITT’s new digs. While the developer secured tenants for the first office building before it began construction, the second building is going up on spec.

Trammell Crow will look for tenants to fill the 100,000-square-foot shell space before work is scheduled to end next June. It’s a riskier proposition, but one the developer is confident will succeed, despite the lagging economy.

“The light rail was a big investment by the private and public sector and very well done and attractive, but it just sat there for years,” said Steve Wells, senior managing director for Trammell Crow Co. “If you go out there now, it’s a busy place and it feels good, like a place where retail and office and hotel all interact.”

[tworivers]

Cascade Parkway welcomes hip hotel
The aloft Hotel hopes its tech perks and trendy accommodations will attract business travelers

http://www.djcoregon.com/_images/articles/djcfourth-0902Aloft%201.jpg

POSTED: 04:00 AM PDT Tuesday, September 2, 2008
BY NATHALIE WEINSTEIN
DJC

The large, beige and concrete hotels near the Portland International Airport are far from exotic. Hotel patrons hurry from the airport shuttle to their rooms, attend their business meetings and depart without a second glance at their accommodations.

Enter Harold Pollin, a veteran of the airport hotel market and owner of the Sheraton and Hampton Inn hotels on N.E. Airport Way. After years in the hotel business, he has decided to take a leap of faith on a new hotel and a new brand, the aloft Hotel, with the hopes of attracting the hip, tech-savvy crowd that sees Portland as a new destination for doing business. Only six aloft hotels have opened nationwide since June, and Pollin’s is the first in the Pacific Northwest.

“This hotel was designed for the traveler whose lifestyle hasn’t been addressed in my market: the young, hip, high-tech, high-energy crowd,” said Pollin. “So I decided to take a shot at a new brand I had no experience with because I felt it could be something unique.”

The $12 million hotel’s entrance, with its dramatic, Technicolor-like canopy and giant letters proclaiming the hotel’s name is the first sign that this isn’t your ordinary hotel. The aloft brand was created by Starwood Hotels & Resorts Worldwide Inc. and is a division of W Hotels.

Building upon the success of its more upscale W hotels, the aloft was designed to be an alternative to other mid-rate hotels and to appeal to hip, urban, technology-driven guests. Even common hotel amenities such as workout rooms and meeting space were rebranded: the pool is ‘splash’, the dining area is ‘refuel’ and the front desk is ‘aloha’. Details of the new brand were kept secret, only referring to the project as ‘wxyz’, which happens to be the name of the aloft’s in-house bar.

“The lobby is a playground,” said Pollin. “There’s a bar, billiards, TVs and a ticker with news and stock information. I see our clientele as interested in socializing instead of going back to the room. They’re looking for action.”

And the action doesn’t stop when guests return to their rooms, said Pollin. Looking more like urban loft studios than hotel rooms, the 136 guest rooms include a king size bed with built-in reading lamps and closet storage on the back side, computer hookups that display the computer’s screen on the room’s flat screen TV, and oversized walk-in showers. The hotel is awash in color, with deep greens and royal purples in the rooms and rainbow-colored light coverings down each hallway.

“The rooms have character, said Pollin. “They are small, but have everything you need.”

Besides the uniqueness of the hotel itself, Pollin is banking on proximity to the airport for a constant stream of guests. He expects his guests to be mostly transient corporate travelers.

“I’m familiar with the airport market,” said Pollin. “It has the most consistent potential for business; the airport isn’t going anywhere.”

And being right on the MAX line and near expanding retail center Cascade Station doesn’t hurt either.

“It’s an ideal location,” said Pollin. “It’s easy to get to and easy to get out of. People won’t need to spend money renting a car. The MAX line was very influential in my site selection.”

Watching a plane approaching the PDX runway from high above, Pollin smiled and said, “I think the aloft name really works well for an airport.”

The aloft Hotel will open Sept. 15. It was constructed by P&C Construction and designed by Myhre Group Architects. Its rooms will retail for $120 per day.

[2oh1]

Anyone else catch the story on the news yesterday about the owners of Pioneer Square mall (and Clackamas) preparing to possibly file for bankruptcy?

http://www.oregonlive.com/newsflash/index.ssf?/base/business-1/122728137618700.xml&storylist=orlocal

[Downtown_Gal]

I heard they had to pay by December 1st but haven't heard anything else... anyone else?

[edirp]

Printed from PlainVanillaShell.com - Built to Suit the Retail Real Estate Industry

General Growth Properties gets loan reprieve

By ALAN ZIBEL (AP Real Estate Writer)

December 1, 2008


WASHINGTON - Troubled shopping mall owner General Growth Properties Inc. is getting a two-week extension on $900 million in debt that had been scheduled to come due last week as the company works to stave off bankruptcy and negotiate longer-term extensions with lenders.

The mortgages cover two malls, Fashion Show and Palazzo, located in Las Vegas, the company said late Sunday. Shares fell 12 cents, or 8.7 percent, to $1.26 in morning trading.

Chicago-based General Growth Properties, the nation's second-largest shopping mall owner, has been hit hard by the deteriorating U.S. economy and problems at struggling U.S. retailers. Analysts are unsure whether new managers, installed in late October, will be able to solve the company's problems.

The company last month hired law firm Sidley Austin as an adviser as it struggles to refinance its staggering debt. The company said in a Securities and Exchange Commission filing last month that it faces nearly $3.1 billion in maturing debt next year, and warned that inability to refinance that debt "raises substantial doubts as to our ability to continue as a going concern."

Deutsche Bank analysts Lou Taylor and Vin Chao predicted Monday that the company will likely receive a longer-term loan extension, rather than default, allowing General Growth to sell off assets or obtain new corporate-level financing.

"Given the financial markets, it's impossible to determine when this will occur and at what price," they wrote.

General Growth has a stake in more than 200 shopping malls in 44 states. It is trying to sell its Las Vegas locations.

Shares of General Growth have lost 91 percent of their value since the end of September, amid concerns about the real estate investment trust's ability to sell debt, and turmoil in General Growth's executive ranks.

Last month, the company reported disappointing third-quarter results and cut its year-end forecast, weeks after the mall owner's board removed its chief executive, president and chief financial officer. Their ouster came after the company disclosed that former CEO John Bucksbaum's family trust provided $90 million in personal loans to cover margin debt for the former chief financial officer and president.

General Growth's struggles come amid growing concern about the debt tied to commercial properties. About $20 billion will be due next year, covering everything from office and condo complexes to hotels and malls.

The retail outlook is particularly bad. Circuit City Stores Inc. and Linens 'n Things have sought bankruptcy protection. Home Depot Inc., Sears, Ann Taylor and Foot Locker are closing stores.

California, New York, Texas and Florida - states with a high concentration of commercial mortgages in the securities market, according to Fitch Ratings - are particularly vulnerable. Texas and Florida are already seeing increased delinquencies and defaults, as are Michigan, Tennessee and Georgia.

---

AP Business Writer Stephen Bernard contributed to this report.