Market r e t a i l . m a g a z i n e Outlets at Traverse Mountain Le h i , Ut ah Outlets at Traverse Dunkin’ Donuts The Thackeray Company Longhorn Steakhouse 225,000 SF Outlet Center Development now open Developer Spotlight - An interview with John Thackeray on his keys to success ©2012 VOL. 005 - 2012 Multiple locations to open in Utah and along the Wasatch Front Tenant Spotlight - new restaurant chain to open in Utah More inside! table of contents Market r e t a i l . m a g a z i n e Coldwell Banker Commercial Salt Lake City, Utah 6550 South Millrock Drive Suite 200 (801) 947-8300 www.coldwellutah.com Follow us on Twitter: http://twitter.com/CBCRetail Steakhouse .. Longhorn Your new favorite steakhouse Donuts .. Dunkin’ Utah runs on Dunkin’ - Coming Soon! instant updates Retail Team Done Deals & New Listings Follow us on Twitter to get a constant update of new listings and done deals. Spotlight .. Developer An interview with Mr. John Thackeray at Traverse Mountain .. Outlets Another major shopping destination opens in Utah Way .. Melty Now expanding and seeking sites Utah? .. Why Where construction never stopped Habit Burger Grill .. The “There’s no substitute for quality!” - Utah Transit Authority .. UTA On the move in Utah A. Banks .. Jos The expert in men’s apparel & Noteworthy .. News Events in our industry Openings/Done Deals .. Recent Who is opening where ©2012 Coldwell Banker Commercial Team Profiles .. Retail Get to know us http://twitter.com/CBCRetail View Previous Issues Here > s e o G By: Mark Seferian If you haven’t yet heard of LongHorn Steakhouse, that’s about to change. Between now and February 2013, Utah’s first location in Midvale, and two others in Ogden and South Jordan, will open in the Salt Lake City area. LongHorn’s distinct atmosphere matches its cuisine for an experience that’s truly unforgettable. The restaurant design Porterhouse for Two of 240. Locations are usually stand-alone parcels in shopping centers with other restaurants and retail offerings nearby. Director of Real Estate Development at Darden Restaurants LongHorn prides itself on serving boldly seasoned, expertly grilled, fresh, never frozen steaks. All of LongHorn’s steaks, including the new Porterhouse for Two, are hand-seasoned with one of three secret seasoning blends, then grilled by each restaurant’s Certified Grill Master. The steaks are paired with a hand chopped salad, steakhouse side, and fresh baked honey-wheat bread all at an everyday value. If you’re in Midvale, Ogden or South Jordan during the coming months, stop by and let your local LongHorn team serve you your new celebrates the rugged landscape of the American West. Inside, guests will notice natural materials like wood, stone, and steel complemented by warm colors, soft lighting, and Western-inspired artwork. Imagine being welcomed into a rancher’s home, then greeted by team members who are ready to help you choose one of LongHorn’s steaks. A typical restaurant is 6,300 square feet with an occupancy LongHorn’s goal is to become America’s favorite steakhouse, so the restaurant plans to bring its guaranteed, cutabove steakhouse experience to more communities across the country … which is why partners like Coldwell Banker Commercial are so important. At the heart of a great restaurant is a great location, which is why when LongHorn enters a new market, it’s crucial for us to work with a local, well-respected, and diligent team – a team like Steve Bowler’s. Working with Steve and his team, namely Heather Bogden and Rachael Storey, was a pleasure. Steve has vast working knowledge of Utah and the surrounding states’ commercial real estate landscape. Rachael was a fantastic help and provided professional-quality materials, like maps, site aerials, and tour FAVORITE STEAK! books. All three, along with their in-house support services, played a fundamental role in developing our site strategy to introduce LongHorn Steakhouse to the greater Salt Lake City market. As part of Darden Restaurants, the world’s largest full-service restaurant company, LongHorn Steakhouse is part of the company known for some of the most recognizable and successful brands, including Red Lobster, Olive Garden, The Capital Grille, Bahama Breeze, Seasons 52, Eddie V’s and most recently, Yard House. Darden owns and operates more than 2,000 restaurants, employs 185,000 people, and serves more than 400 million meals a year. LongHorn is looking forward to continued expansion in Utah – and is thankful for the partnership of Coldwell Banker Commercial. zach beaudry zach.beaudry@coldwellutah.com Zach Beaudry, Retail Specialist with Coldwell Banker Commercial, interviews Mitchell C. Lowe, General Counsel & Vice President of Development at Sizzling Platter, LLC, which has obtained the development rights for Dunkin’ Donuts in Utah. Q: How many total restaurants does Sizzling Platter operate and in how many states? Overall, we operate more than 180 locations in seven states. Q: Sizzling Platter has been operating Dunkin’ Donuts in other markets, such as Texas and Colorado, what is the outlook on how the brand will be received in Utah? We are very enthusiastic about how the brand will be received. We will be making our donuts fresh daily and are excited to introduce our award-winning coffee, breakfast sandwiches, and lunch offerings to the Utah market. We also believe that the contemporary look and feel of the new Dunkin’ buildings will be a perfect fit for the Wasatch front. This is not a “donut shop” in the traditional sense, it’s a full service restaurant with a coffee/donut/breakfast sandwich focus. Q: Sizzling Platter has an extensive background in the restaurant business with other concepts such as Red Robin, Sizzler, and Little Caesars, but this is the first breakfastspecific brand. Does that change the mindset of choosing future locations? Each concept has its specific site criteria. Dunkin’ needs to have great visibility; all will have drive-thrus, easy ingress and egress, and be convenient to the morning breakfast/ coffee consumer. Q: Are you seeing more competition for sites in all of the markets you are located in? Yes, the markets are definitely picking up. Even with rents increasing, we see the pickup in activity as a net positive for everyone. Q: How many stores do you see the Wasatch Front and Utah supporting? Q: Lastly, what is your favorite type of donut that Dunkin’ sells? We plan to open 16 or more. Chocolate glazed with a “regular” (cream/sugar) coffee. By: Steve Bowler and Heather Bogden Steve Bowler & Heather Bogden had the pleasure of interviewing Mr. John Thackeray. During the interview, they discovered some of his history, his thoughts on development, and his keys to success in the ever-changing world of commercial real estate. Developer Spotlight Steve Bowler steve.bowler@coldwellutah.com Give us a brief history of your experience and what prompted you to start your own company: As a commercial real estate developer, what past modes of development do you anticipate changing? At a young age I knew I wanted to own my own company. I started developing duplexes while I was still in college. It was not easy because I am a first generation developer. I had to rely on my own money, my own knowledge, and ensure that I was smart with my decisions. Everything. The reality is that you have to learn to live in uncertainty in real estate. The highly leveraged projects tend to be dangerous and they tend to go under and then people lose all of their money. I started Johansen Thackeray with Armand Johansen. Armand and I met while studying communism and socialism in economics class at the University of Utah. We both went on to BYU Law School. I worked for John Price for two years after law school prior to starting Johansen-Thackeray. After many great years of partnership, Armand left to be an LDS Mission President. We transitioned, and the Thackeray Company is still very active. You have many successful projects with water features, fountains, beautiful landscapes, and finishes that are above and beyond. Why? I told myself from the beginning that I did not want to be a merchant builder. I want to put my vision in my shopping centers and all my developments. I want to create an experience for people. Everywhere I go, I still look and think about what should be on a property. If I like a feature, I think of how I could use it in one of my developments. Heather Bogden heather.bogden@coldwellutah.com The Thackeray Company is a long-term holder of real estate, so I make sure we put great care in the developments. We are currently doing hotels, industrial, and apartment complexes. I am still always on the lookout for marquee retail projects. Do you have a favorite project? On a personal note, there is no doubt about your professionalism and ability as a real estate developer, but it is also a well-known fact that you have one heck of a golf game, so if you could play with any pro on any course who would it be and where? The projects that I like are the ones that proved to be difficult: The Commons at West Bountiful, where we had to work with 35 different landowners to compile the area; The Commons at South Town, where we had to buy a Wal-Mart and sit and wonder when we would have the site back; and Sugarhouse Commons, where we spent seven years working through zoning. Projects like these are my favorites. You are well known for your retail background. What is the current primary focus of your development? (chuckles) Phil Mickelson at Augusta. He can call shots and do all kinds of tricks with a wedge. It’s amazing. He is also a very gracious player. Yeah, Mickelson. The Outlets at Traverse Mountain GRAND OPENING officially opened their doors on November 16th, 2012. This exciting project has brought the Salt Lake City region an outlet shopping experience like none other. The project is located in Lehi, near I-15 and SR92 (Alpine/Highland interchange), and is adjacent to an 180,000 square foot Cabela’s. The center consists of approximately 225,000 square feet and around 50 stores. Anchoring the development are, Banana Republic Factory Store, Calvin Klein, Coach Factory, Gap Outlet, J. Crew Factory, Nike Factory Store, Polo Ralph Lauren Factory Store, Tommy Hilfiger and Under Armour. The project is the latest outlet shopping center development for CRG (Craig Realty Group). CRG, based in Newport Beach, California, specializes in upscale factory outlet centers, and currently owns and operates several outlets across the country. The Outlets at Traverse Mountain includes many unique features Written by: Dan Moore Retail Specialist including, open-air architecture, fitted glass canopies and heated walkways. The Outlets at Traverse Mountain will be a destination not to be missed by local residents and visitors alike. Melty Way is also franchising in Utah & surrounding states! Unique in the industry, the start-up costs and operating model allow a wide array of participants to own Melty Way restaurants. From regional development rights to single store ownership, we welcome experienced franchise and food operators to find out more about this unique and expanding cheesy sensation. Sure, “grilled cheese” and “gourmet” may sound like an odd combination, but after you bite into a Melty Way Family Center at Fort Union in Midvale, and are gourmet grilled cheese sandwich, you instantly realize under construction with a Sugarhouse location at that this is the way grilled cheese was meant to be the new 2100 Sugarhouse project (Granite Furniture experienced. redevelopment). Melty Way is also in negotiations ROB MOORE on several other locations in Utah, Weber, and Davis rob.moore@coldwellutah.com counties. TYSON MOORE The Melty Way story begins with its founder, Rob Hale, a native Utahan. For over 16 years, Rob was an executive chef by day and a restless foodie by night. For Rob, the only thing more perfect than a grilled cheese sandwich was his quest to create perfect grilled cheese Contact the Moore Team (Rob, Tyson, or Dan Moore) sandwiches. Rob first unveiled his grilled cheese creations at a weekend Farmer’s Market in with any potential locations that you would like to Park City. His unique combination of fresh, local ingredients and proprietary sauces took present or with any franchising inquiries. the market by storm… and Melty Way was born. Melty Way uses the finest, freshest ingredients to create an exciting variety of sandwiches including, The Three Cheese (havarti, pepper jack, and aged cheddar), The Turkey Club (havarti, aged cheddar, smoked turkey, bacon, tomatoes, and mustard), and The Artichoke & Tomato (provolone, pepper jack, marinated artichokes, tomatoes, and pesto). Naturally, you can’t have a grilled cheese sandwich without soup, so Melty Way provides an assortment of daily soups, including its signature tomato basil. As if that wasn’t enough, Melty Way customers also enjoy real ice cream sandwiches, hand-scooped and lovingly nestled between two freshly baked cookies. Melty Way is actively expanding along the Wasatch front, and looking for highly visible shop space in strong, anchored centers. Ideal sites are 1,500 square feet, but we will consider spaces in the 1,300-1,800 s.f. range. End caps are preferred, but we will consider inline spaces if warranted by the trade area. Melty Way has one current location open in DDR’s tyson.moore@coldwellutah.com DAN MOORE dan.moore@coldwellutah.com A T U H “1st in Economic Outlook” “1st in Best State for Business” Forbes Magazine (2011) “1st in Worker Productivity Index” Brookings Institute (2011) Utah Is Poised to Grow – Today & Well into the Future W hile most of the country was recovering from one of the nation’s worst economic downturns, Utah was experiencing an economic boost. Several new shopping center developments and large corporations like Boeing, Goldman Sachs, Procter & Gamble, and Adobe broke ground on new developments or expanded their presence here in Utah. Construction never ceased, which increased jobs and brought new retail into the state. Bolstered by innovative economic development legislation and aggressive incentive programs, Utah is consistently ranked as having one of the strongest “1st in Best Quality of Life” Business Facilities Magazine (2010) “1st in Best States to Live” Gallup Healthways (2010) “2nd in Top States for Business” CNBC (2012) “2nd in Top 10 Pro-Business States” business environments in the country. These accolades are due in part to companies with unprecedented access to capital and a legislature that maintains a business-friendly landscape through investment in roads and IT. Utah also boasts a unique combination of energy resources, and a highly educated workforce… not to mention, a phenomenal quality of life. Perhaps the initial allure of the four-seasons of recreational opportunities like skiing, cycling, climbing, and fishing is enticing, but those who visit soon realize Utah is more than just fun and games. We know how to get down to business and we are making strides to keep Utah at the forefront of business success. These, as well as many other retailers are new to Utah for 2012. Athelta BCBGmaxazria Brooks Brothers Buffalo Wild Wings Coach Cotton On Dunkin’ Donuts Gordmans H&M Hugo Boss Johnny Rockets Longhorn Steakhouse Love Culture Marshall’s Michael Kors Pandora Papyrus Scheels Texas de Brazil Churrascari Tiffany & Co. Tilly’s The Habit Burger Grill Trader Joe’s Tumi West Elm Pollina Corporate (2011) “2nd Best City for Public Transportation” US News (2011) “2nd For Job Growth” Salt Lake Tribune (2012) “2nd Best Education Climate” Business Facilities Magazine (2010) “4th in Most Competitve Energy Rates” Moody’s Economy (2011) “5th Best City for the Next Decade” Kiplinger (2010) AWARDS & RANKINGS ALEC-Laffer, Rich States Poor States (2011) The Habit Burger Grill is coming to Utah! They will be opening soon in the former Granite Furniture redevelopment located in the heart of Sugar House. Additional locations in Utah will be announced shortly, and The Habit is scouting for prime end-cap and freestanding units along the Wasatch Front. The Habit Restaurants, LLC (“The Habit”) is an Irvine, California-based company with close to 60 restaurants located throughout California and Arizona. The Habit is a fast casual concept that offers a premier dining experience by using the highest quality ingredients with food that is fresh and made to order. Customers experience extraordinary value by receiving delicious food and friendly, attentive service at affordable, everyday prices. The menu includes charbroiled hamburgers, specialty sandwiches, fresh salads, and handmade shakes and malts. Their dedication to delivering the highest quality food and using only the finest ingredients has become the backbone of their motto – “There’s No Substitute For Quality!” cameron simonsen cameron.simonsen@coldwellutah.com stuart thain stuart.thain@coldwellutah.com NRT Site Requirements • 1,800 – 2,500 square feet with outdoor dining • One-mile daytime population of 10,000 plus • Median household income of $60,000 plus • End-cap or free standing • High visibility, easy access and convenient surface parking preferred • Daily needs, grocery and big box anchored centers preferred • Drive-thru opportunities will be considered Please visit www.habitdevelopment.us for more information and send potential sites in Utah to: cameron.simonsen@coldwellutah.com or stuart.thain@coldwellutah.com UTA History Utah Transit Authority On The Move. With a service area of more than 1,400 square miles, UTA is one of the largest geographic public transportation agencies in the country. Covering 75 cities in 6 counties, UTA provides public transportation services to 80% of Utah residents. In 1968, Salt Lake City Lines, the struggling private company that had been providing transportation to the public, announced it would discontinue service. As a result, Salt Lake City Corporation entered into a two-year agreement with Union Street Railway to provide public transportation to residents. In 1969, Salt Lake City Corporation, Union Street Railway and Salt Lake County successfully lobbied the Utah State Legislature to pass a bill allowing individual localities to address transportation needs in their communities by forming local transit districts. UTA was founded on March 3, 1970 after residents from Salt Lake City and the surrounding communities of Murray, Midvale, Sandy and Bingham voted to form a public transit district. For the next 30 years, UTA provided Wasatch Front-area residents with public transportation, primarily bus service. During this time, UTA expanded its operations to include express bus routes, Paratransit service, and carpool and vanpool programs. Initial planning for a light rail system began in the 1980s, and UTA’s first TRAX light rail line opened in December 1999. A second light rail line, between downtown Salt Lake City and the University of Utah, opened in 2001, and UTA extended that line from the university’s stadium to its medical center by 2003. In 2011, UTA added the Mid-Jordan and West Valley TRAX lines. In 2005, UTA began construction on its first commuter rail system, called FrontRunner. FrontRunner opened in April 2008 and offers high-speed rail service along a 44-mile stretch between Weber County and downtown Salt Lake City. Bus FLEX MAX TRAX FrontRunner In addition, UTA plans to open three rail projects by 2015, including TRAX from Sandy to Draper and from downtown Salt Lake and the Salt Lake City International Airport. Additionally, UTA is extending the FrontRunner commuter rail from downtown Salt Lake City to Provo, located 45 miles to the south. Meridian, ID Boise, ID Salt Lake City, UT Each day, UTA’s team of more than 2,000 bus and rail operators, maintenance and parts personnel, and administrative employees keep the agency on the road to Utah’s public transportation future. Did You Know TRAX ridership was more •2011 than 14 million trips can travel at speeds •FrontRunner up to 79 miles per hour WiFi access is available on all •Free FrontRunner commuter rail trains and express buses • At least ten Transit-oriented Developments (TOD’s) are under construction or in various stages of development with more in the concept phase New Construction Progress Provo, UT service from Provo to •FrontRunner Salt Lake City starts December 10, 2012 Airport TRAX Line is expected •The to open April 14, 2013 with 4,600 average weekday boarding’s upon opening Draper TRAX Line is expected •The to open in Fall 2013 Sugar House Streetcar Line is •The projected to open in late 2013 Information and images provided by Gerry Carpenter, UTA Spokesperson & www.rideuta.com Market r e t a i l . m a g a z i n e South Jordan, UT Murray, UT JoS. A. BANK is represented by Rich Robins and Sherry Schoen of Coldwell Banker Commercial in both Utah and Idaho. JoS. A. BANK continues to seek sites in Lifestyle Centers, Central Business Districts, Upscale Mixed-Use Centers, “Main Street” Shopping Districts, Airports, and “A” Malls. Please submit all potential sites to: Rich Robins - Utah rich.robins@coldwellutah.com Sherry Schoen - Idaho sherry.schoen@coldwellutah.com News and Noteworthy Cabela’s World’s Foremost Outfitter recently announced two new stores that will be located in Colorado. They will be taking 11 acres for an 84,000 square foot store in Thornton, CO and 12 acres for a 125,000 square foot store in Lone Tree, CO. Tim Simonsen and Lori Coburn of Coldwell Banker Commercial NRT represented Cabela’s in both transactions. According to Global Trade Magazine, Utah ranks in the Top 50 Cities for Global Trade. The primary exports coming out of Utah include metal manufacturing, computer & electronic products and transportation equipment. WDS, a Xerox Company, anticipates hiring 700 additional employees in the Boise, ID area. This will represent a 64% increase in their existing work force. Macerich Co. a n n o u n ce d third-quarter funds from operations were $112.9 million, compared to $104.2 million a year ago. The REIT earned $43.9 million, compared to $12.9 million in the same period a year ago. The International Council of Shopping Centers (ICSC) predicts a 3% rise in Christmas sales over last year’s season. They also predict that retailers will help boost sales by hiring 8.8 million seasonal workers. U.S. chain-store sales increased 5 percent in October, not counting drug stores, according to ICSC’s index of 21 retailers. That compares to a 3.9 percent increase in September of 2012 and a 4.1 percent increase in October of 2011. Trader Joe’s opened their first Utah location in 2012. The 12,700 square foot store took a former Old Navy space located at 634 East and 400 South in Salt Lake City. Target continues to open new CityTarget stores in dense urban markets such as Los Angeles, Chicago and Seattle. The average size of the CityTarget concept is between 80,000 – 100,000 square feet, compared to traditional Target stores that average 135,000 square feet and 175,000 square feet for Super Target. WinCo Foods is under construction on a new 90,000 square foot store at Alameda Plaza in Pocatello, ID. They will be relocating their existing store in the market. Dave & Buster’s is under construction on a new 24,500 square foot location at Boise Towne Plaza in Boise, ID with plans to open in January of 2013. Cameron Simonsen of Coldwell Banker Commercial NRT represented Dave & Buster’s in the transaction. Xactware has broken ground on a new 210,000 square foot facility in Lehi, UT. The company will spend $130 million on the new facility and will ultimately create 859 new full-time positions. Brandon Fugal of Coldwell Banker Commercial’s office division represented Xactware in the transaction. Recent Openings & Done Deals is under construction on .. Cabela’s a new 125,000 square foot store in has opened a 21,110 square .. T.J.Maxx foot store at Bridger Peaks Town Lonetree, CO. Tim Simonsen and Lori Coburn represented Cabela’s in the transaction. Center in Bozeman, MT. Cameron Simonsen represented TJ Maxx in the transaction. Cabela’s under construction in Lonetree, CO T.J.Maxx opens in Bozeman, MT has opened a 220,000 . . Scheels square foot store at One 14 in opened two 3,600 square .. Kneaders foot stores in Saratoga Springs, UT Sandy, UT. Stuart Thain represented Scheels and the Landlord (Liljenquist Properties) in the transaction. and in Ogden, UT. Dan Moore, Tyson Moore and Rob Moore represented Kneaders in both transactions. Scheels opens in Sandy, UT Kneaders opens in Saratoga Springs & Ogden, UT has opened a 10,500 square .. Petco foot store in Soldotna, AK. Steve Garden has opened an 8,200 .. Olive square foot store at Dimond Center Bowler and Jim Wood represented Petco in the transaction. in Anchorage, AK. Steve Bowler and Jim Wood represented Olive Garden in the transaction. Petco opens in Soldotna, AK Olive Garden opens in Anchorage, AK has opened a 154,000 square .. Costco foot store in Spanish Fork, UT. Time Idaho has opened a .. Jump 11,696 square foot location in Boise, Stuart Thain along with John Gurr of Internet Properties represented Costco in the transaction. ID. Sherry Schoen represented Jump Time in the transaction. Costco opens in Spanish Fork, UT Jump Time Idaho opens in Boise, ID Bakery & Café has opened .. Paradise a 4,500 square foot restaurant Auto Parts opened two .. O’Reilly 7,225 square foot stores in Jerome, ID and at 1100 South State in Salt Lake City, UT. Tim Simonsen and Lori Coburn represented O’Reilly in both transactions. at Cache Valley Mall in Logan, UT. Cameron Simonsen represented Paradise Bakery in the transaction. O’Reilly Auto Parts opens 2 locations Paradise Bakery & Café opens in Logan, UT RETAIL Team Experience ZACH Beaudry DEBBIE Reverman HEATHER Bogden STEVE Bowler JEFF Roberts RICH Robins STEVE Bogden LORI Coburn RICHARD Coles TONY Coop PHILLIP Dunn CODY Felts ADRIENNE Hansen DAN Moore ROB Moore TYSON Moore GREG Pavich SHERRY Schoen CAMERON Simonsen TIM Simonsen ERIN Splan RACHAEL Storey STUART Thain ELIZABETH Weeks PETER Williams DAVE Winnie JIM Wood DON Zebe