Kite Realty Group Trust (NYSE: KRG) (the “Company”) is providing a leasing and joint venture update for its planned Parkside Town Commons development project in Raleigh, North Carolina.
Overview of the Project
Parkside Town Commons is a planned multi-phased 580,000 square foot retail development located in Raleigh, North Carolina. Phase I will be anchored by a Harris Teeter grocery store and a non-owned Target. Phase II will be anchored by Golf Galaxy, Frank Theatres CineBowl & Grille, and a new concept owned by a national credit tenant focused on outdoor activities such as hunting, fishing, and camping. The retail site is directly adjacent to Research Triangle Park, which serves as the home to a work force of 52,000 people and more than 170 companies, including IBM, Cisco Systems, GlaxoSmithKline, Fidelity Investments, and RTI International. The demographics within the trade area of the project are attractive, with a population density of nearly 86,000 and an average household income in excess of $113,000.
Leasing Update – Phase I
The development’s primary anchor, Target Corporation, has acquired 10.7 acres of land for the construction of a 135,000 square foot store in the project’s first phase. In addition, Harris Teeter-Neighborhood Food and Pharmacy has signed a ground lease and will construct a 53,000 square foot grocery store. Phase I of the development is expected to contain approximately 250,000 total square feet with an estimated project cost of approximately $39 million. Construction is anticipated to commence in early 2013 with an estimated opening in the Spring of 2014.
Leasing Update – Phase II
The second phase of the development is expected to contain a total of approximately 330,000 square feet which includes square footage attributable to non-owned outlots. Leases have been executed with three of the primary anchor tenants in Phase II of the development: a 35,000 square foot Golf Galaxy; a 56,000 square foot Frank Theatres CineBowl & Grille which will include 12 screens, 16 bowling lanes, and a full-service restaurant; as well as a 50,000 square foot new concept owned by a national credit tenant focused on outdoor activities such as hunting, fishing, and camping. Phase II construction is anticipated to commence in late 2013 or early 2014 with an estimated project cost of approximately $66 million.