2 big retail projects planned for Manor

area

Endeavor development could eclipse Southpark Meadows
in size.

By Shonda Novak
AMERICAN-STATESMAN STAFF
Saturday, November 03, 2007

In the next few years, the Manor area could be destined for more than 700 acres of shops, offices, restaurants and residences as Endeavor Real Estate Group LLC and Eastbourne Investments Ltd. proceed with plans for projects at the intersection of Parmer Lane, U.S. 290 and the new Texas 130 toll road.

On Friday, Endeavor released new, albeit preliminary, details of its project — a retail, residential and office development planned for 607 acres at the northeast corner of Texas 130 and U.S. 290. That's the most land the Austin-based development firm has assembled to date for a single project in Central Texas, said Chris Ellis, an Endeavor principal.

Although Endeavor has no signed leases, two undisclosed retailers have signed letters expressing interest in opening stores of 30,000 square feet each, Ellis said.

The other project, planned by New York-based Eastbourne Investments Ltd. and its local partner, SCC Development, would bring about 1 million square feet of retail on 126 acres at the southeast corner of U.S. 290 and Texas 130, across from Endeavor's development. Both projects will be competing for many of the same tenants, such as Target and J.C. Penney.

Endeavor's center would eclipse the company's sprawling Southpark Meadows development, which is on 425 acres near Interstate 35 and Slaughter Lane in South Austin. Southpark Meadows will eventually have 1.6 million square feet of retail plus hundreds of homes and apartments.

"We envision a project similar but much more detailed in scope to what we've done at Southpark Meadows," Ellis said. "We're strong believers in both the short-term and long-term prospects for this intersection."

Construction could start in 2009, with the first tenants opening in late 2010 or early 2011, Ellis said.

"We expect retail to be the driver of the project and to happen first," he said. And assuming demand exists, "in a best-case scenario, the plan would be developed out on a five- to seven-year time period once we start," Ellis said.

Market conditions will determine how much square footage of retail, housing and offices ultimately are built at its Parmer/290 project.

A conceptual site plan Endeavor displayed at a recent shopping center convention showed a project with more than 3.6 million square feet. But Ellis said those numbers are preliminary and subject to change.

"What the project becomes ultimately ... is going to be very dependent on what the market allows us to do out there," Ellis said.

What is certain is that the area is in the path of growth.

Ellis said about 120,000 people with average household incomes of more than $53,000 live in the trade area for Endeavor's proposed center.

The area has seen strong annual growth in the past 10 years, about 3.7 percent historically, Ellis said.

And more people are coming.

With plans in place to extend U.S. 290 past Endeavor's site, "We expect the 130 corridor and the 290 corridor to grow dramatically with residents in both the near-term and the long-term," Ellis said.

Endeavor is marketing its project to department stores, specialty retailers and grocery chains. According to the site plan, the retail wish list is similar to Southpark Meadows' lineup. Prospects include Target, J.C. Penney, Kohl's, Old Navy, Michael's, Petsmart, Best Buy, Marshall's, Rooms to Go, Academy, a theater, a warehouse club store and a home improvement store.

"We're talking to all the retailers that would be a natural fit at this location," Ellis said. So far, no grocery stores have expressed interest in the area, he said.

Ellis said it's also not yet known how much housing, and what type, might end up on the site.

"I would hope to be able to integrate some housing into the project, but there are no guarantees," Ellis said. However, he said, "We are fairly confident we'll be able to do apartment, multifamily-type uses ... on a separate parcel."

Asked whether Endeavor plans to assemble additional acreage for the project, as it did with Southpark Meadows, Ellis said: "Not at this time. We've assembled the acreage we're looking to assemble."

Nearby, Eastbourne and SCC plan to build a center with anchors such as Target, Wal-Mart, Lowe's or J.C. Penney, said Kelly Shaw, a principal with SCC. Plans are to break ground in late 2008 or early 2009 and open the project in the spring or fall of 2010.

"We have all the utilities," Shaw said. "We're ready to go."