Perhaps nothing signifies the resurgence of the U.S. retail market, both on a macro and micro level, more than the long-delayed opening of Downtown Summerlin, in Las Vegas. Opened in October, the open-air center is the largest retail development to debut in the United States since the economic downturn. It has quickly ramped up to become not only one of the hottest retail destinations in the Las Vegas region, but in the entire Western part of the country. The center is also a sign of the powerful economic recovery under way in the Las Vegas valley, an area that was hard hit by the downturn.
The 1.6 million sq. ft., 106-acre mixed-use development boasts more than 125 stores and restaurants plus a nine-story Class-A office building — with ground-floor retail. And that’s only the opening act: The shopping center is part of a 400-acre property and represents the first phase of the master plan for Downtown Summerlin. Along with more shopping, dining and entertainment options, the developer is considering plans for Class-A office space, a baseball stadium and residential structures with condominiums and apartments on 200 adjacent acres.
Downtown Summerlin is not designed as — or intended to be — a typical mall or lifestyle center. Instead, it is fashioned as something more unique, a downtown urban core for the Summerlin community with streets, sidewalks, vehicles and pedestrians. It has a grid layout that incorporates “city blocks” and boasts 34 architecturally unique city buildings. Each has its own design aesthetic, with no two buildings sharing an architectural style.
Also, Downtown Summerlin can do things that regular shopping centers can’t — like throw street fairs and blaze neon across the night sky of the Mohave Desert.
BACK STORY
In coming to life, the development faced a formidable challenge — the recession — which hit Las Vegas very hard. General Growth Properties broke ground in 2007, with plans to open in 2009, but the recession interrupted construction in 2008. A year later, in 2009, General Growth declared bankruptcy.
As a result, Downtown Summerlin sat dormant until the middle of 2013 — with the skeleton of the unfinished office building brooding over the beginnings of an enclosed shopping mall.
When General Growth emerged from bankruptcy, it spun off two public property companies, the New York City-based Rouse Company and the Dallas-based The Howard Hughes Corporation, which came away with the Summerlin master-planned community, including the stalled project.
Downtown Summerlin was originally designed as an enclosed mall with several open-air retail buildings surrounding it. Upon studying the property, Howard Hughes’ senior executives envisioned something quite different — and much more ambitious.
“The property is enormous — 106 acres of prime real estate,” said David Kautz, senior VP development, The Howard Hughes Corporation. “We realized that it would take far too much walking to go from one end of the property to the other. So we decided we needed streets for vehicles. At that point, we conceived the idea that the development should become a downtown urban core for Summerlin — a planned community that spans 22,500 acres and has more than 100,000 residents.”
The community abuts the Red Rock Canyon National Conservation Area, a nationally designated conservancy that attracts 2 million visitors every year.
“It is one of the most beautiful places in the country,” Kautz added. “Our project overlooks this magnificent area with red rocks coming out of the landscape.”
The project’s architecture (ELS Architecture, Berkeley, California, served as executive architect, and Altoon Partners, Los Angeles, California, served as design architect) incorporates many of the colors and shapes of the spectacular landscape, combining them with an overall contemporary aesthetic, including the liberal use of metal panels and imported stone. It makes for a compelling juxtaposition of looks.
“We not only brought in natural stone and natural finishes from around the world, but we also included a number of flashy touches, such as neon, which call the Las Vegas strip to mind,” Kautz said. “During the day, the tone is Mohave Desert. At night, the neon makes everything come alive.”
The center was built with an eye to LEED (Leadership in Energy & Environmental Design) certification (see related story). Many of the buildings use high-end materials and experimental building structures. A two-level row of shops is topped by a sail-like “roof” for daytime shade and nighttime lighting. VCC served as the general contractor.
The site layout locates fashion retailers — the lion’s share of retailers — in the center of the development along with two department store anchors, Dillard’s and Macy’s.
North of the fashion area, there is a restaurant hub, with a number of eateries facing the “dining arroyo,” a landscaped patio with water/fire features. The south side of the development is a traditional power center.
“In terms of leasing, this is the most diverse project I’ve ever been on,” said Andrew Ciarrocchi, general manager, Downtown Summerlin. “You can shop for groceries as well as high fashion. We’ve found that to be a very strong leasing mix.”
With a true grid system, the streets run east and west and north and south, with street parallel parking. There are wide walkable sidewalks lined throughout with 400 palm trees.
“Folks even ride their bikes here to visit Trader Joe’s and shop other stores,” added Ciarrocchi.
As an urban core development, Downtown Summerlin plays yet another important role in the Las Vegas valley. Most major cities have edge cities, smaller urban centers just outside the big city. Summerlin, with its new downtown has become an edge city for Las Vegas.
Finally, the community has embraced it.
“Once it opened and people saw the pedestrian-friendly streets with people riding bikes, walking dogs, visiting the street festivals, there was no doubt that this was Summerlin’s downtown,” said Kautz.
“I’ve been developing commercial real estate for three decades,” he continued. “This is one of the most dynamic projects I’ve ever worked on. Seeing it come together after overcoming so many challenges, including sitting idle for a long time, is very rewarding. The community, which had been looking at a shell for several years, has embraced this beautiful center.”
Michael Fickes is a contributing editor of Chain Store Age.