DDR Says Total Costs Incurred As of Dec. 31/01 For Pike at Rainbow Harbor (QW Bay entertainment/retail project) Approx. $23.8 million
(February 25, 2002) -- In its 4th quarter financial report detailing projects companywide, Developers Diversified Realty (DDR) indicates its total costs incurred in connection with the Pike at Rainbow Harbor [QW Bay entertainment and retail project] as of Dec. 31, 2001 are approximately $23.8 million.
In DDR's 4th quarter financial supplement for the 12 months ending Dec. 31, 2001, the section dealing with Projects to Commence Construction indicates the following concerning the Pike at Rainbow Harbor:
"Total project costs are currently estimated at $90 million and square footage is expected to be 350,000 sf. At December 31, 2001, DDR had incurred total costs of approximately $23.8 million. The timing associated with future development costs is undetermined at this time."
It lists major tenants as Crown Theatres, Carnival Club, Gladstones, Prego, Coldstone Creamery, Guaymas, Bubba Gump, California Pizza Kitchen. It lists as a substantial completion date the 2d half of 2003.
DDR's 4th quarter report was presented by company officials during a Feb. 22 internet webcast event from DDR's Ohio headquarters. DDR officials also fielded questions, and one came in concerning the Pike at Rainbow Harbor (QW Bay ent/retail) project:
Q: Good afternoon. I was wondering if I could get an update on Queensway Bay. Has construction commenced and how is preleasing going with that development?
DDR CEO and Board Chairman Scott Wolstein: First of all, we've done some preliminary utility work on the site but we really haven't started construction per se. And the reason for that is that before we can start construction, the city has to issue bonds to finance a parking garage. And there are some issues that the city is working through, basically with the State Lands Commission and otherwise, that they need to resolve before they can issue the bond and therefore before we can start construction. We expect that will all resolve itself within the next sixty days or so and we're prepared to get in the ground as soon as we get the green light.
As far as the leasing goes, it's actually going quite well. We have a lot of very exciting restaurants that have committed to the project as well as a movie theater. We're finalizing a deal with a GameWorks or a Jillian's, both of whom are interested in the project, so we're actually excited about getting in the ground.
In a different section of the report dealing with Joint Venture Developments, reference is made to another DDR project in LB: CityPlace (site of the former LB Plaza).
It indicates substantial completion for CityPlace in the second half of 2002. It lists major tenants as Wal-Mart, Nordstrom Rack, Old Navy, Ross Dress for Less, Albertsonís and Savon.