Long Beach Retail Grows With DDR
Downtown Long Beach’s renaissance continues to unfold these days with two ventures by Developers Diversified Realty (DDR): the Nov. 8 grand opening of CityPlace, and the future debut of the Pike at Rainbow Harbor.
The $60 million CityPlace runs along Pine Avenue and replaces the enclosed Long Beach Plaza, which fell into disrepair in the 1990s. Anchored by Wal-Mart Stores Inc., Ross Stores Inc. and Nordstrom Rack, the new 450,000-square-foot center reopens Fourth and Fifth streets, helping to drive further renovation in the neighborhood, according to city officials.
“It provides a better connection to the community and is a catalyst for interest in projects elsewhere in downtown,” said Robert Zur Schmiede, redevelopment officer for the city of Long Beach.
In years past, redevelopment efforts focused on Pine Avenue between Third Street and Ocean Avenue downtown. Zur Schmiede said CityPlace shifts the center of interest northward in downtown. Already, 3,000 housing units are in the pipeline for development in the next three to five years. And, on the Promenade, a pedestrian thoroughfare east of Pine, a long-awaited hotel, housing developments and retail expansion are in the works.
To help get CityPlace off the ground, the city and redevelopment agency kicked in $17.4 million in subsidies, and the city owns and will operate the 2,400-space parking lot.
Both city and DDR officials hope CityPlace creates a community center. Along with 60 tenants, the project offers a mix of 341 apartments and condominiums, which will open by spring 2003.
“All of the downtown retail was centered in the old Long Beach Plaza, and this development provides a stronger link with retailers outside the center,” said Craig Trottier, development director for Clevelandbased DDR.
Wal-Mart’s 134,000-square-foot space is slightly smaller than a typical unit. Like other stores, it will cater to its community, said Bob McAdam, vice president of state and local government relations for the Bentonville, Ark.-based retailer.
“This is a more pedestrian-oriented shopping center so you won’t find super-large bags of dog food or big bags of potting soil,” McAdam said.
The 30,000-square-foot Nordstrom Rack will carry clothing for men, women and children, including lines DKNY, Steve Madden, Diesel, Coach and Tommy Hilfiger. With branches opening in Ontario and Lakewood in the last year, Nordstrom Rack now operates 17 stores in the state, reflecting its expansion in the Southern California region.
“California continues to be a big market for us, and CityPlace gives us the opportunity to work in an underserved market,” said Tracy Overby, spokesperson for Nordstrom Rack.
With one project under their belt, DDR officials hope to find success with the Pike development less than half a mile away, located between the Long Beach Convention & Entertainment Center and the Aquarium of the Pacific. The $130 million development was scheduled to open years ago but ran into difficulties when tenant Edwards Theatres Inc. filed for bankruptcy protection. Crown Theatres has signed on as the new tenant with a 14-screen cineplex.
DDR officials expect the Pike, scheduled to open next fall, to serve a more entertainment-oriented need for customers compared to the CityPlace project. California Pizza Kitchen, Harry’s Bar, Bubba Gump Shrimp Co., Guayamas, Gladstone’s, Coldstone Creamery and Islands Burgers are among the announced tenants. Still, the center, which is about 60 percent leased, welcomes more retail and appareloriented merchants.
“We’d be delighted to have some tenants similar to those found at the Block at Orange or the Ir vine Spectrum Center,” Trottier said.
