Cappelli Says City Center Nearly Fully Leased

The facility will have two basketball, squash and racquetball courts an Olympic-sized swimming pool and spa. LA Fitness, headquartered in Irvine, CA, also plans to open clubs in April in Lake Success and in May in Farmingdale on Long Island. Other area club openings include a location in New Brunswick, NJ. The firm currently operates clubs in Orange, CT, and Cherry Hill and Turnersville, NJ.

Other lease signings announced by Cappelli at City Center include a 25,000-sf lease with Office Max. The office supply store will join Filene's Basement, which announced last month it plans to open a 75,000-sf store on the second level of the 550,000-sf retail center by late April of this year. Cappelli also announced that the Atlanta Bread Co. has signed a lease to operate a store on the Main Street level. Thompson says the leases bring the complex to near full occupancy.

In other news relating to Cappelli's City Center project, which also includes the construction of two 35-story residential towers, Thompson says that work on the Northern Tower is nearly finished and a sales office for the luxury rental apartments is expected to open on March 27. Rents for the apartments will range from $1,600 to more than $5,000 per month. Nearby, construction that was halted for about a month due to harsh weather is expected to resume March 17. That property will feature luxury condominium units. Construction on the South Tower and adjoining loft building is expected to be finished by July 2005.

Thompson says that New York City developer Donald Trump has held discussions recently with owner Louis Cappelli about possibly investing in the South Tower building. Thompson also notes that "about a half dozen investors have expressed interest" in gaining some ownership participation in the retail component of City Center, the northern tower now known as 1 City Place, as well as Cappelli's planned $330-million 221 Main St. project across the street that calls for the construction of another high-rise condo building, that will also include a Westin Hotel, and an office building. Depending on approvals from the city council, Cappelli hopes to begin construction on that venture by July of this year.

Investors are each discussing funding of approximately $400 million, Thompson relates. No deals have been finalized with any investors, but discussions are ongoing, he says.