Bruce Berg, executive vice president of Cappelli Enterprises, said that the firm is scheduling a topping off ceremony for the first of its two planned residential towers (the North Tower) to be built at its $300 million City Center at White Plains project in the next few weeks. Berg, who was the keynote speaker at a meeting of the Westchester County Board of Realtors' Commercial Investment Division on Thursday, added that construction on the South Tower will likely commence by next month or sometime in May. He noted that Cappelli Enterprises is currently finalizing financing of that component of the City Center at White Plains development. Marketing for the units in the North Tower is expected to start this summer with initial occupancy scheduled for January 2004.

The City Center at White Plains, which is being built at the former Macy's department store site on Mamaroneck Ave. and Main St., will eventually feature approximately 500,000 sf of retail space and two, 35-story residential towers and a six-story loft building that will total more than 600 residential units. Berg explained that the North Tower will contain approximately 311 luxury rental apartment units. The South Tower will also feature about 300 units. Currently, the firm plans to market those units as luxury rentals, however, Berg says that market conditions could cause Cappelli to alter his strategy and sell the units in the South Tower as condominiums. The six-story loft building to be built at the site will contain about 21 housing units that will be sold as condominiums, each priced at about $1 million.

Berg says that the firm intends to meet its deadline and finish construction to facilitate the grand opening of the Target department store on Oct. 5, 2003. He added that a number of other retailers at the City Center will open in concert with Target in October. A 15-screen multiplex theater operated by National Amusements, has planned a Nov. 1, 2003 opening. Circuit City and other major retailers could be open by Thanksgiving.

While construction continues in earnest at the City Center at White Plains site, Berg said that the first scoping session with the City of White Plains was held recently on its 221 Main St. proposal, which will involve the construction of two, 35-story towers almost directly across the street from the City Center project. The first tower to be built will feature a 200-room Westin hotel and 200 condominium units, also priced at $1 million each. The project will also include approximately 10,000 sf of street level retail space. The second tower building will be an office building of more than 500,000 sf.

He noted that Cappelli hopes that obtain all the necessary approvals on the 221 Main St. venture by the late summer or early September of this year. Berg added that construction on the hotel/condo building could begin as early as the fourth quarter of this year with the office building expected to be built sometime later.

"This office building is not going to be built on spec," he emphasized. For the office building to commence construction, the developer will require a significant pre-leasing commitment both in terms of financing and from a large anchor tenant, Berg noted.

He later added. "We recognize that there is a high vacancy rate in White Plains, we are not looking to make that worse."

Berg said that the firm is bullish on White Plain, despite the current national economic downturn, the uneasiness over the war in Iraq and reports that leasing of rental housing units has slowed nationwide.

"Despite what is going on in the economy, I think it is a good time for building, the rates are low," Berg said. "I think there is demand here, we think it is a great city and the opportunities are great."