A project that will easily surpass $600 million to build when all is said and done is on the cusp of having its first tenant open for business and is readying for an October “mini” grand opening when dozens of tenants are expected to open their doors.
The Ridge Hill project in Yonkers, which will total approximately 1.2 million square feet of mixed-use space and is being developed by Forest City Ratner Cos., was approved by the Yonkers City Council in July 2006 and officially broke ground Nov. 28, 2007.
Since then, Forest City Ratner and general contractor Yonkers Contracting Company Inc. have been undertaking the massive excavation, infrastructure and building construction in connection with the project. Originally scheduled to open in late 2009, the project has encountered delays that have pushed the project”™s opening to this October that will be followed by individual tenant openings that will be staggered throughout the remainder of this year and into 2012.
On May 5, as part of the Yonkers Business Week program, James Cory, vice president, retail leasing at Forest City Ratner, and David Marom, president of Horizon Group, the developer of the 167-unit Monarch at Ridge Hill condominium complex on the Ridge Hill property, provided an update on their respective projects.
Cory arrived to work on leasing at Ridge Hill from Forest City Ratner offices in Los Angeles, on Sept. 15, 2008, the day Lehman Brothers shut its doors. He recalled, “It was the beginning of a huge slide,” Cory told the attendees. “Thankfully, things have turned around.”
He related that after the movie theater”™s “soft opening,” outdoor sporting goods retailer REI is scheduled to open its first store in the Westchester County region later this month. In August, the 50,000-square-foot Dick”™s Sporting Goods store will open and a more than 60,000-square-foot Whole Foods supermarket is scheduled to open Sept. 15.
Forest City Ratner will stage a “mini” grand opening that is tentatively scheduled for Oct. 20 when Cory said the firm anticipates the grand opening of anywhere from 30 to 40 retailers at Ridge Hill. Among those include L.L. Bean, Sephora, Orvis, H&M, and restaurants The Cheesecake Factory, Yard House, Brio Tuscan Grille, Texas De Brazil.
Other tenants on the Ridge Hill roster include apparel retailers: GAP, Delia”™s, Desigual, Old Navy and Republic of Couture; restaurants: Barbes and Elevation Burger, gift store Yankee Candle, home furnishings retailer Sur La Table and dry cleaner, Image Cleaner.
Cory said that by October approximately 70 percent of the available space at Ridge Hill would be committed.
The project also includes approximately 160,000 square feet of what is now vacant existing office space. The Westmed Medical Group has signed a lease for more than 80,000 square feet of space at the One Ridge Hill building and is scheduled to open in July. Forest City officials expect that Westmed will bring a total of approximately 1,200 patients and workers to the property each day.
Andy Silberfein, executive vice president and director of retail development and finance for Forest City Ratner, said that Ridge Hill began experiencing some increased leasing momentum in late 2010. Last November it reported that Dick’s Sporting Goods, REI and sporting goods retailer Orvis had signed leases at Ridge Hill.
In December, Lord & Taylor announced it had signed a lease for an 80,000-square-foot store at Ridge Hill, replacing Saks Fifth Avenue which had originally intended to open a store at Ridge Hill but in March of last year announced it was backing out of its nonbinding letter of intent with Forest City. Lord & Taylor will open its store in 2012. The new Ridge Hill store will be its first new, full-line Lord & Taylor since its Landmark Mall location in Alexandria, Va., opened in 2001.
Silberfein said the recession did cause many retailers to focus on their existing stores and put plans for expansion on the shelf. However, that has changed of late. “The level of excitement from retailers has really been skyrocketing. The retailers have seen that the market is turning. They are feeling much more optimistic than they have in the past and they are much more anxious to rebuild their pipeline of new stores and stay ahead of their competitors.”
The leasing momentum Ridge Hill has enjoyed since last November has prompted him to believe “that the retailers really are understanding the caliber of the center that we have created.”
Silberfein said that the developer is pleased with the pace of construction and noted that a majority of the construction will be completed by sometime in 2012, with the exception of tenant build-out and the possible construction of a 175-room hotel at a future date. He said Forest City is trying to create an environment where people will want to spend a half a day on the property due to its diverse tenant mix featuring entertainment, food and retail offerings.
In addition, Forest City Ratner has retained Wet Design, a water fountain designer, to create a water fountain near the movie theater that will showcase choreographed sheets of water with a flame feature. The developer has also hired sculptor Tom Otterness to design a children”™s playground, which will have a unique 17-foot tall metal sculpture that will serve as a children”™s Jungle Jim.
Job generator
Ross Pepe, president of the Construction Industry Council of Westchester & Hudson Valley Inc. said work on the development has been critical for the construction industry in the region during the current economic downturn. “Ridge Hill demonstrates an enormous vote of confidence in the city of Yonkers and Westchester County by a major regional developer. By virtually every measure, Ridge Hill is raising the quality of life and economy for everyone,” he said. “Westchester”™s Ridge Hill, with its 1.2 million square feet of retail and entertainment space, continues to serve as a vital shot in the arm for the building and construction trades during this prolonged recession.”
Yonkers City Council President Chuck Lesnick, who has announced his intent to run for mayor, said that there are a number of issues the council still must address involving Ridge Hill, including the purchase of property for a new firehouse.
Lesnick noted that the project encountered some problems after it was approved by the city, including delays that were first caused by litigation and then later by the recession.
He agreed with Pepe that since its groundbreaking in late 2007, Ridge Hill has played a critical role in the county”™s economy. “It has been a real saving grace for this region.” He noted that the “multiplier effect of all these construction jobs has been enormous for this region.”
Lesnick said he is now looking forward to the sales tax and property tax revenue that will be generated by Ridge Hill and the retail sales multiplier effect it will subsequently generate.
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