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Talk About Walkabout Residents soak up American spirit at Caruso Affiliated's new mixed-use community.
National Apartments Association UNITS Magazine - January 2009
by Victoria Harker
Residents soak up American spirit at Caruso Affiliated's new mixed-use community in downtown Glendale, Calif. Four blocks in downtown Glendale have risen from blight to become one of the hottest destinations in Southern California. A new $400 million lifestyle center, The Americana at Brand, has taken over. Combining luxury living, shopping and recreation with 900,000 square feet of upscale stores, restaurants, entertainment, and apartments and condos, the area is a true "walk-about" community for residents. They can stroll over to shop at the city's first Tiffany & Co., dine at The Cheesecake Factory or take a walk in the two acre park.
More than 1 million people came within the first two weeks of the community's
May opening to see the spectacle: 74 shops, a dancing musical fountain and light
show, an 18-screen theater and 338 high-end luxury apartments and condos.
Created by the "reigning king of mega malls," Rick Caruso, CEO of Los Angelesbased
Caruso Affiliated, The Americana looks to recreate the glamour, nostalgia
and history of great cities like Boston and New Orleans.
"It transports people to another era and reminds them of classic
American towns and historic shipping districts," Caruso said.
It was a long time coming. The project took a decade to complete
with a protracted court battle with General Growth Properties,
which owns the mid-tier Glendale Galleria mall next door. In
the end, the owners of the Galleria were ordered to pay $89 million
for unfair business practices in trying to derail the project.
"It was absolutely worth it," said Caruso, who learned about
corporate court battles at his father's knee. Henry "Hank" Caruso,
founder of Dollar Rent A Car, took on the three largest car
rental companies in court in the 1970s to stop discrimination
against smaller companies vying for airport locations.
Today, Rick Caruso is his own force. He became a household
name in 2002 in Los Angeles after opening The Grove, a regional
open-air retail project that draws more than 18 million visitors
a year.
Record Breaking
"Caruso-Style" environments mix retail, architecture, parks,
fountains, promenades, plazas and now residential to offer
places to gather and a sense of community that Americans
crave, Caruso said.
The Americana is Caruso's biggest yet, and the first with a residential
component-apartments called The Residences and
condominiums called Excelsior. It celebrated one of the largest
retail center opening parties ever in Southern California on May
2, 2008, with 2,000 guests, including Gov. Arnold Schwarzenegger.
Wolfgang Puck catered. Jay Leno emceed. Tony Bennett, the
Four Tops and The Temptations were among the performers.
Ninety percent of the 475,000 square feet of retail was preleased.
Retail store managers rushed to replace inventories at
stores like Armani, Kate Spade, Cole Haan and Juicy Couture.
The Cheesecake Factory reported one of the best weekend grand
openings in the chain's history. Lacoste Chairman Robert Siegel
announced that the store exceeded all expectations for sales.
Apartment leasing was on track with projections with more
than 30 percent of the 238 units leased in the first two months,
said Jennifer Gordon, Caruso's Vice President of Public Relations
and Special Events. Within six months, occupancy was at
approximately 60 percent. To promote leases, the company
reduced lease prices slightly on some rentals and offered incentives
inluding a significant reduction of the security deposit if
residents moved in before January 2009.
"The project is doing extremely well and the apartments are
leasing a little ahead of plan," Caruso said. "We have reset rents
in the region. We're probably 20 percent above what rents are in
Burbank, Pasadena and Glendale."
The company expects full occupancy this year and is confident
it will outshine other retail and residential projects being built
in the region, said Paul Kurzawa, Executive Vice President of
Operations.
"Consumers will choose where they want to live," Kurzawa
said. "The Americana at Brand stands alone. We have a much
stronger amenity package than any other community in the
greater Los Angeles area."
A View From Above
Seamless architectural design and landscaping give the project
a timeless feel. Moving art, music, an outdoor crystal chandelier
and a massive elevator shaft with exposed steel beams
beckon residents and visitors.
The apartments and condos sit three and four stories high atop
the retail with views of downtown Los Angeles and the San Gabriel
Mountains. There are 51 different floor plans. One has six balconies.
"We didn't want to build these crackerjack boxes and have
everything the same," Caruso said. "We wanted to have enough
uniqueness that if you visit your neighbor there is an actual
individuality to it. And people have fallen in love with it."
The Residences Apartments target Baby Boomers and others
who want to live near work and recreation areas. Glendale
police and fire fighters receive a 10 percent reduction from base
rents on one-bedrooms. Family and children's activities attract
a varied clientele.
Jan and Fred Cuevas were among the first renters. They wanted
"a nice place" close to work. They like the personalized
concierge service and the concerts on the weekends.
"We are empty nesters so being close to shopping and dining
is important," Jan Cuevas said. "We wanted a place that was a
delight to entertain our friends."
Residents live like guests at a five-star resort. A one-call service
to the front desk is available for room and poolside meals,
wake-up calls, car washes and oil changes, personal shopping,
party planning, gift wrapping and even piano tuning.
Entertainment and concerts are held in a two-acre publicprivate
park. Other amenities include a great room for entertaining,
billiards and big screen movies, cabanas at poolside
and a state-of-the-art gym with steam rooms.
"It really redefines what we call a neighborhood," Kurzawa
said. "Residents really feel like they are in a different environment.
It's not just the architecture and high-level shops; it's
everything from landscaping to the uniforms of the employees
that really creates that sense of luxury. That's what the entire
Caruso team has worked so hard to create."
In recognition of the project, the California Apartment Association-
Los Angeles named The Residences a 2008 Signature Property
award winner. Peers vote on new communities that "set the standard
for all that come, provide new ideas and redefine the skyline."
Winning Formula in a Losing Economy
The Americana is transforming downtown Glendale, a city
that had declined over many years with little in the way of new
retail or restaurants.
Home to John Wayne, Baskin-Robbins and Fountain Lawn
Memorial, the city is benefiting from the new sales taxes. Retailers
along Brand Boulevard continue to see more activity, especially on
weekends.
The Galleria mall also is benefiting, said Caruso, who has
moved on to other battles and projects, including the renovation
of the century-old Miramar Hotel near Santa Barbara and a residential
and retail lifestyle center, the Shops at Santa Anita, next
to the historic Santa Anita Park racetrack in Arcadia, Calif.
Although retail everywhere is feeling the economy, Caruso
Affiliated retail projects are leasing at 100 percent, Caruso said.
So what is Caruso's formula? Target upscale renters in dense
urban areas, pre-lease 90 percent of the retail and bring the
right clients in.
Caruso also actively encourages community input with every
project.
"We build for a lifetime," said Caruso, who announced in
November that he would not run for the Los Angeles mayor's
seat as predicted, and instead accepted the governor's appointment
to the joint state and city commission that oversees management
of the Memorial Coliseum.. "The economy always has
ups and downs. It always has. It always will. It's like building an
airplane: You don't build for the calm weather. You've got to
plan for turbulence."
Victoria Harker is a freelance writer in Phoenix.
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