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Next growth bomb: Jaguar/599 intersection [The Santa Fe New Mexican]
[October 27, 2014]

Next growth bomb: Jaguar/599 intersection [The Santa Fe New Mexican]


(Santa Fe New Mexican, The (NM) Via Acquire Media NewsEdge) Oct. 27--There haven't been too many BIG things happening on the commercial/institutional scene in the recent past, but there's a big one coming: the Village Plaza at Tierra Contenta and Santa Fe Commercial Center. The Village Plaza slated for the east side of N.M. 599 is retail-oriented, so the developers will be courting restaurants and expect there to be a small grocery store. "It will essentially be the front door of Tierra Contenta," said Scott Hoeft of the Santa Fe Planning Group. "Then the Santa Fe Commercial Center on the other side of 599 will be an office park, similar to Rodeo Park but larger." The first phase is the construction of a new interchange featuring an extension of Jaguar Drive. That should be complete next summer. "We are working with owner/developer Kate Fishman and her family on the two projects," said Kira Wege, vice president of Pegasus Retail, Albuquerque. We're spearheading this and trying to get a jump on the marketing of the available land there for sale and lease. That is an underserviced trade area. It offers quick and convenient access for all of Santa Fe. On the Santa Fe commercial side, what eventually will happen is a grand new entrance into the Santa Fe Airport." Two new construction projects on Santa Fe's south side are Christus St. Vincent Regional Medical Center's $7 million Entrada Contenta Health Center going up at Cerrillos Road and Herrera Drive (in front of the Walmart Supercenter) and the U.S. Department of Veterans Affairs' Santa Fe Community Based Outpatient Clinic at 5152 Beckner Road in the Las Soleras subdivision. Designed by Dekker/Perich/Sabatini, Albuquerque, the 7,225-square-foot VA clinic has a lofty butterfly-roof feature that brightens the lobby. Services to eligible veterans include blood draws, EKGs, immunizations, and routine lab tests. (Appointments: 986-8645.) Earlier this year, city officials met with representatives of Costco Wholesale about a possible warehouse store on the large Las Soleras property. Although Costco sells a "Santa Fe" patio furniture collection, Wanda Jorgensen in the company's real-estate office would not confirm an intention to enter the Santa Fe market. Two retailers that are coming into Las Soleras are Chick-fil-A and Taco Bell, according to Lisa D. Martinez, director of the city's Land Use Department. She added that Denny's is expected to submit for permits for a second Santa Fe restaurant there as well.

There is no new information on the relocation of two of Santa Fe's automobile dealerships. Jason Bass, general manager of Premier Motorcars, said they're "still just in the preliminary process" of considerations for a reported new dealership at 7511 Cerrillos Road. And although Beaver Toyota Scion of Santa Fe did some site work at a new site on Becker Road in 2009, general manager Buddy Espinosa said only, "I think something is going to take place, maybe in a year and a half." During 2014, the old Navarro Cadillac dealership at 800 St. Michael's Drive was torn down and is now a gas station for Smith's grocery.

At San Isidro Plaza on Zafarano Drive, Aspen Medical Center is expanding and there will be an acupuncture clinic next door. "That side [of Zafarano] is 100 percent leased," said Mark Ruhlman with Columbus Capital, which has developed the shopping center over the last eight years. "This year Cloud 9 Creamery went in with CoCoPelli Chocolatier, and they're doing really well." Ruhlman said the company has a potential restaurant lined up for the Piazza Fiorina building, 3795 Cerrillos Road, formerly occupied by Fusion Fire, and has another intent for the former southside location of Bumble Bee's Baja Grill, 3737 Cerrillos, which closed this summer.


"Retailwise we're close to 100 percent occupied in our space and we have good interest from both regional and national users," he said. "Our office space, like everybody else's, is a little soft." That includes vacancies at the Coronado Building on E. Palace Avenue, Southwest Plaza on San Mateo Street, and St. Michael's Medical Park at 435 St. Michael's Drive; and office/warehouse buildings at 7357 Old Airport Road and in the Agua Fria Business Park.

Columbus Capital's Jeff Branch is working on redeveloping San Francisco Plaza, west of the Eldorado Hotel downtown. That involves demolishing three buildings to make way for a new, 14,000-square-foot commercial/residential project, while preserving one historic building.

On the mall scene, Santa Fe Place is getting ready to finish an interior remodeling project, centered on the plaza near the Dillard's entrance. "We just finished doing the fireplace on Oct. 19 and the furniture is coming in," said marketing manager Lance Farrell. "We're looking for completion by early November." The big news recently was Sports Authority filling the old Mervyn's space in the fall of 2013. New businesses at the mall include Spencer Gifts and a few holiday tenants, including Toys R Us and Eastern Oils. Coming to Santa Fe Place in the spring is Boba Tea Company.

One of the mall's vacant spaces is in the food court, which saw the departure of Sbarro Italian Eatery. The New York company trimmed 155 restaurants and had a Chapter 11 bankruptcy at the beginning of the year; there are 582 outlets remaining. "Radio Shack also closed a lot of its stores last spring," Farrell said, "but we still have ours." (As, fortunately, do De Vargas Center and Coronado Center.) At the other end of town, DeVargas Center has a lively food scene going with longtimers Pizza Etc., Santa Fe Bar & Grill, and Atrisco recently joined by Tree House Café and Pastry Shop, and Señor Murphy. Among the recent mall additions are The Reel Life, moved from Sanbusco Center; Firma Energywear, a Queen's Ransom concept doing very well in the former Surrender Dorothy space; and the expanded Christine's Bridal, which now includes a formal men's wear line.

The creepy crawlie factor burgeoned with the move of Harrell's House of Natural Oddities from a kiosk to a store space. "And on Halloween night they're moving into a larger space, going from 1,000 to 2,000 square feet," said mall manager Katy Fitzgerald. "There will be a lot more exhibits, responding to people saying, 'This is so much fun, but I wish you had more.'" At the east end of the mall (accessed from outside), Denice Sherwin opened Life Vessel, and will be adding a raw bar next door, possibly this month.

Ken Joseph's Luna project, based around a remodel of an old DeSoto car dealership, has settled in at 515 Cerrillos Road. Joining Ohori's, Talin Market, and Cassie's Boutique in the past year were Marble Brewery, Olive Grove, Old Wood LLC, the law firm Heard Robins Cloud LLP, the Pura Vida hair salon, and a private office. Joseph wants a restaurant for the architectural highlight of Luna, a glassy building with a great street face.

Over at Pacheco Park, Victoria Price Art & Design closed in November a year ago. New at the Pacheco Street business park in the past year are Loren Haynes of Pink Adobe Productions; Pruett Media, LLC; Ryan Heffernan Photography; and Proscape Landscape Management. Kurt Faust, a partner owner of the development (and of high-end homebuilder Tierra Concepts), said they're just about 90 percent occupied at this time.

A big, blue crane visible around town indicates progress on the Violet Crown movie theater being built in the Santa Fe Railyard. There will be 11 screens, most of them underground. "We're starting to pour the main deck which will form the first floor," said Richard Czoski, director of the Santa Fe Railyard Community Development Corp. "All of the auditoriums underground have been laid out and the floors poured. We're looking at completion by early April." The theater complex includes a 4,700-square-foot restaurant and bar. Patrons will be able to reserve their seats online (which is very popular in the prototype Violet Crown theater in Austin) and then you buy food and beverages and take them in to watch the movie.

In the Baca Area of the Railyard, Raven Hicks opened Real Martial Arts at 932 Railfan Road. Santa Fe Mountain Sports departed last spring and Undisputed Fitness and Caveman Coffee Café took over the space. Rose Utton is about to start on a new building adjacent to Art Handlers Ltd.; it will be an expansion of that business and provide space for a gallery. Recollections Fine Consignment Furniture & Antiques, 1225 Cerrillos Road, built an addition in 2014 and changed its name to The Raven Fine Consignments. The business has been in Santa Fe since 2002 and at this address since 2008.

In other Railyard news, Czoski said they're working with a developer on a 40-unit apartment building next to the Artyard building. "That will probably go to the planning commission and the city council in the first quarter. And we're planning on issuing a request for proposals on the last two parcels adjacent to the water tower, the last main parcels in the heart of the railyard." Let's get a bit industrial for a moment. Fiberspan Concrete Vigas, which fabricates cement faux-wood vigas, headers, and canales, relocated from Sedona to Santa Fe: 2886 Trades West Road. And Tractor Supply Co. arrived at 3901 Oliver Road, off Airport Road. The firm sells chain saws, log-splitters, motors, pumps, hardware, and feed.

Passers by have appreciated the work ongoing at the New Mexico School for the Deaf -- as have staff and students. One standout this year was the building of a library and museum, which will see a grand opening in December. Drivers along Cerrillos Road watched the progress of the handsome new fence as it went up. Also accomplished this year -- by architects Dekker/Perich/Sabatini and contractor Bradbury Stamm -- was a renovation of the Dillon Hall basement to house the NMSD health center, transportation office, and the school's statewide outreach agency.

Next on the school's improvement plan are demolitions of the old laundry facility, old health center, and the Sosaya building. "That will tie most of the remaining buidlings to our central plant, improve parking, and we will add a quad with a mulitpurpose play area for the younger childen," said project manager Harold Moya. "This will be our largest project, pricewise, at about $14 million." He said the demolitions are challenging because some of the buildings are historic, but they're outdated and there is asbestos present. After that is a renovation of the 1916 boys' dormitory Cartwright Hall for transitional family housing; and renovation of Delgado Hall, the administration building.

New this year are two schools, both on the south side and both pre-kindergarten through 7th grade: Nina Otero Community School on Paseo del Sur and El Camino Real Academy on South Meadows Road. Santa Fe Community College's $12 million, 34,000-square-foot Higher Education Center is set to open at the corner of Llano Street and Siringo Road in January. A $10.5 million, 32,000-square-foot Presbyterian Healthcare Services clinic, under construction at 454 St. Michael's Drive, is expected to open in the spring.

op.cit bookstore is busy and crowded with books in its Sanbusco Center space after a move from Las Vegas last year. The store had plans to locate in the Luna project a few blocks away and still may do so if the right space opens up. The large Sanbusco space left vacant by the departure of Border's Books a few years ago is still open for leasing. In January, Baillio's closed its doors at 3294 Cerrillos Road after 28 years.

Drury Plaza Santa Fe, a 182-room hotel, opened after undertaking a substantial remodel of the 1953 St. Vincent Hospital building that was designed by John Gaw Meem. Project manager Brian Nenninger said some work is still under way, including land work to complete the "promenade" connection with Cathedral Park; that should be done soon.

If you've wondered about the stacks of brick standing in the hotel's Palace Avenue turnaround, that is for the floor and walls of the restaurant, which is schedule to open in February. Once that is done, Drury will hold its grand opening. Nenninger thinks the two retail spaces that were built onto the parking garage facing Paseo de Peralta will be filled before the spring.

Decisions about the next major phase, Drury's remodel of Marian Hall as a boutique hotel, will probably wait until the end of the next year's tourist season to see how business is going.

In other downtown commerce news, the clothing retailer Parts Unknown moved from its 2,000-square-foot store at 121 W. San Francisco Street next door into the 6,000 square feet left vacant by the departure of Coldwater Creek (which filed for bankruptcy last spring). The Rouge Cat nightclub (which was the city's only gay bar) closed its doors at 101 W. Marcy Street in late winter after nearly four years of operation. In October, Doug Nava and Mark England opened the Blue Rooster bar and nightclub there. England calls it "the gay bar that's straight-friendly." Another nightclub, Skylight, was opened by Joe Ray Sandoval and "DJ Dynamite" Sol Bentley this summer at Palacio Francisco, 139 W. San Francisco Street. Among those formerly doing business in the Palacio building were Downtown Subscription, Tribes Coffee House, and Milagro 139 restaurant.

Somers jewelry and sculpture opened at 137 E. Palace Avenue. Across the street, Owings Gallery opened a second exhibition space. Around the block, at 130 E. Marcy, Cheesemongers of Santa Fe is preparing to open on Nov. 20. Angel's Bakery and Café opened in space left vacant when the Catamount closed in 2010. On May 31, Melinda Gipson opened Sweet Lily Bakery at 229A Johnson Street. At 225 Johnson, Geronimo owner Lloyd Abrams opened Georgia restaurant, also in the springtime. Last there was the O'Keeffe Café, an eatery that closed in the fall of 2011. Draft Station opened in February in a Santa Fe Arcade space, 60 E. San Francisco Street and overlooking the Plaza, that formerly had Marble Brewery.

At press time, the longtime Tecolote Café building on the corner of Cerrillos Road and Monterey Drive was being demolished. The business lost its lease there, after more than three decades, in April and is set to reopen this month (November 2014) at 1616 St. Michael's Drive, previously the home for seven years of Santa Fe Yummy Café. (Yummy, specializing in fine Asian cuisine, advised the faithful to keep track at santfeyummycafe.com "to see where we re-open.") Krispy Kreme is set to open in December at 3297 Cerrillos Road (just north of Richards Avenue, next to McDonald's). Further south, Fashion Outlets of Santa Fe opened a new restaurant named Desert Rose. In the Plaza Santa Fe shopping center, Jimmy John's Gourmet Sandwiches was getting ready to open in late October in the former Starbucks building, 3526 Zafarano Drive. The coffeehouse's departure is a surprise. That was the company's first Santa Fe store, located near the brand-new Target in 1998, and since then Starbucks had established five more freestanding coffeeshops and four coffee nooks inside Albertsons groceries and the Target store. "Starbucks is going away from non-drivethrough whenever possible, and that location did not have a drivethrough," Anthony Johnson said.

It looks like there will again be a coffee shop in Plaza Contenta, the commercial center in Tierra Contenta. Watch that space.

"I think overall the market is improving," said Marc Bertram, SF Brown Real Estate. "We are looking at some new deals and some new construction that we haven't seen in quite a while. One is an expansion for Homewise. Another is a new tenant at Rodeo Park, so we may be building there in the first quarter. Then we're looking at a possible mixed-use joint venture with Homewise near the corner of Agua Fria and Harrison Road." SF Brown recently welcomed a new tenant at 215 Lincoln Avenue. Both that property and Marcy Plaza, 119 E. Marcy Street, are about 90 percent tenanted after about 400 employees of Thornburg Investment Management and Thornburg Mortgage moved into the company's new office building five years ago. Bertram worries that a similar market void may be created if the State of New Mexico builds a new complex at the Las Soleras property. "I think the office market will continue to struggle. As long as there's the threat that the state will build at Las Soleras, there's apprehension in the market, from a development and banking standpoint. The last thing we need is uncertainty and that one is causing ripple effects all across the office market. Nobody's going to want to risk millions with that threat of the state creating a gigantic vacancy in this small of a market. I know first-hand how long it took to us to retenant our spaces downtown after Thornburg moved and this is four times the impact. I would guess it would be 10 years at least." Bertram looks forward to the eventual opening of Zia Station for the New Mexico Rail Runner Express, and to the development of businesses at the St. Francis Drive/Zia Road site. "Our intention is to do many of the things the city and mayor have been talking about for the redevelopment of St. Michael's Drive, but you don't have to redevelop. We have 20-some acres in one piece." About Las Soleras, Pegasus Retail's Kira Wege said, "There's a lot of energy now out there, with retailers sniffing around. Our hope at Plaza at Tierra Contenta is to take some of that energy, shift if off the bypass road, and take some of that craziness and congestion off of Cerrillos Road." |||| ___ (c)2014 The Santa Fe New Mexican (Santa Fe, N.M.) Visit The Santa Fe New Mexican (Santa Fe, N.M.) at www.santafenewmexican.com Distributed by MCT Information Services

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