FEATURE ARTICLE, DECEMBER 2005

Birmingham, Alabama

With mixed-use developments becoming a 21st century trend, more and more new construction combines residential and retail components. In the greater Birmingham market there is more than 1 million square feet of mixed-use retail/residential space in some phase of development.

Soho Square, Homewood Gardens, The Village at University Park and Broadway Park in Homewood, Cahaba Village in Mountain Brook and Standard Condominiums in Birmingham represent approximately 320,000 square feet of new retail and almost 600 residential units.

“The demand for condominiums by empty-nesters and professionals is far greater than the available product,” says to Margi Ingram, president of Ingram & Associates, the sales agency for Cahaba Village, Homewood Gardens, Broadway Park and The Village at University Park. “Convenience and social interaction are two of the factors creating the demand for this energizing lifestyle.”

Cyprus Partners and Qualls Development are developing The Broadway Park Condominiums on the site of existing apartments at the intersection of Green Springs Highway and Broadway. The project includes 65 condominiums located above 11,200 square feet of retail. Cohen Carnaggio Reynolds is the architect for the project. KMA Associates is the retail leasing company for Broadway Place.

Arlington Properties is replacing the Homewood Garden Apartments in Homewood with 177 luxury condominiums, 19 garden homes and 12,500 square feet of retail. The condominiums will feature underground parking and landscaped plazas at street level.

“The Homewood Gardens project will represent the best in mixed-use developments,” says Kent Graeve, president of Arlington Properties. “The architectural design will complement ‘old Homewood' by appearing to have been built over time.” Garrison Barrett Group is the architect and Arlington Construction Services will be the lead contractor. Completion is scheduled for the spring of 2008. Retail Specialists Inc. is the retail leasing agent.

Bayer Properties Inc. is building Cahaba Village on a 15-acre site at the intersection of Highway 280 and Green Valley Road in Mountain Brook. “This represents the first time in the city of Mountain Brook where residential above retail has been introduced,” says David Silverstein, a principal with Bayer Properties Inc. “Hopefully, the success of Cahaba Village will lead to the implementation of residential above retail in the three existing Villages where there is ample opportunity to bring this about.”

The three-story, English-style Cahaba Village is being designed by CMH Architects and it will include 110,000 square feet of retail with 22 two-story condominiums above the retail shops. In addition to the residential/retail building, Cahaba Village will include Alabama's first Whole Foods Market, Stoney River Legendary Steaks and the new Bryant Bank. Arlington Properties, in association with Ingram, is handling residential sales of Cahaba Village with Bayer handling the retail leasing.

Also, Corporate Realty Developments plans to break ground for Standard Condominiums on a 2-acre site on Second Avenue South, between 17th and 18th streets, in midtown next year. The development will include 12,500 square feet of retail and up to 150 condominiums according to Jimmy Holloway, a director with Corporate Realty Developments. Giattina Fisher Aycock Architects is designing the project and One Residential is leasing the condominiums.

Daniel Construction plans to begin construction on The Village at University Park in January, with completion expected next fall. Plans call for 74 condominiums and 14,000 square feet of retail.

Colonial Properties Trust is planning to add residential components to two existing retail projects (Brookwood Village Mall in Homewood and at the Colonnade development on Highway 280), according to Charles McGehee, executive vice president in charge of mixed-use developments at Colonial Properties Trust.

— Marianne B. Sharbel is president of Birmingham, Alabama-based Concepts Public Relations and Advertising, Inc.

Birmingham continues to be a growing and vibrant real estate market based on the significant and exciting growth that has come to the city this year and is forecasted to continue next year. This growth is evidenced by three unique developments: SoHo Square, a unique mixed-use project of retail and living space being built within a quaint city center in downtown Homewood; Ross Bridge, a 1,600-acre development in one of Birmingham's finest suburbs; and the Jefferson County Metropolitan Park at Lakeshore, a 336.5-acre industrial park anchored by Wachovia Corporation's new $400 million data center. Each of these ventures shows great initiative in delivering excellent real estate offerings to the city.

The first of these three projects is the mixed-use development, SoHo Square, a combination of 46,000 square feet of retail space, 76 condos (all of which have been sold) totaling 140,000 square feet, and a new 60,000-square-foot City Hall. The vision and development team for SoHo Square includes Scott Bryant of Cyprus Partners, Homewood's Mayor Barry McCulley and City Council President Ginger Busby. Brasfield & Gorrie built the retail and residential components and McCrory Building Company built the government component of this development. The $55 million concept of retail, residential and government is new to the state and will have a built-in customer base. The retail space alone is expected to generate upwards of $500,000 in sales taxes on an annual basis. SoHo Square opened in Homewood last month.

Daniel Corporation and USS Real Estate are bringing Ross Bridge Town Center, a 1,600-acre mixed-use development, to Birmingham, Alabama.

The Jefferson County Metropolitan Park at Lakeshore is the county's newest office and industrial park and, according to the county commissioner's office, the $400 million Wachovia data center represents the largest investment in Birmingham in nearly a decade. Atlanta-based Holder Construction Company is the contractor for the 210,000-square-foot data center, which will be situated on 70.5 acres and is scheduled for completion next June. Once operational, the center's estimated annual economic impact is more than $6 million.   The Jefferson County Commission and the Jefferson County Economic and Industrial Development Authority are spending $6.5 million on infrastructure and another $1.35 million has come from state funding. The remaining 266 acres in the park will be available to other future users and tenants.

All three of these projects are firsts of their kind for the Birmingham area real estate market and promise to change the landscape of how this city will approach future development in the years to come.

— Bradley Jones is vice president, leasing, and Jerry Grant is manager, office leasing, with the Birmingham, Alabama, office of Daniel Corporation.

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