$100M Aspen Place Breaking Ground in Q1 2007

FLAGSTAFF, AZ-A 40-acre former sawmill site will be redeveloped into a $100-million retail and high-density residential project, beginning first quarter Q1 2007. Aspen Place at the Sawmill, featuring 155,000 sf of retail, has an estimated two-year build-out period.

Donald L. Meyers, founder and president of the Aspen Group in Phoenix, says national tenants already are showing interest in the project at Butler and Lone Tree roads near the Downtown. "We have corporate approval from Chico's and Coldwater Creek for space and we're in serious negotiation with other regional restaurants," Meyers tells GlobeSt.com.

Meyers estimates that, given the interest in the project, the retail portion could be 100% leased by the time it opens. John Corritore with Corritore Co. in Scottsdale is handling the leasing.

Although retail construction is about to begin, Meyers says the residential component remains up in the air. His company would like to see medium- to high-priced townhouses and condominiums on the site. "We're still working on the housing part, but we feel the retail will drive the residential," he says.

It's also not certain if the Aspen Group will build the residential portion or farm it out to smaller builders. Meyers says he's been approached by several developers, but isn't ready to make a decision. However, the residential is an important component of the project.

"This is a real work-live-play concept," Meyers says. "This is being directed to second-home buyers from the Phoenix market. They'll have amenities around them. They can walk from their townhome to get a cup of coffee, eat a meal or shop."

Curt Wagner and Doug Oberg with the Aspen Group are overseeing the development, with assistance from Peter Kleis of Granite Capital Investments Inc. in Phoenix. DFD Cornoyer Hedrick Architects, also Phoenix, designed the development.