Excel Legacy Announces Two New Projects: Desert Fashion Plaza and NewPortCenter.SAN DIEGO--(BUSINESS WIRE)--June 3, 1998--Excel Legacy Corp. (Legacy) announced today two new joint venture projects, Desert Fashion Plaza, in Palm Springs, Calif., and NewPortCenter located in Winnepeg, Canada. Legacy entered into a joint venture to acquire and redevelop Desert Fashion Plaza, an urban mall containing approximately 290,000 square feet of gross leasable area Gross leasable area (GLA) in the retail development industry is a term applied to shopping malls, lifestyle centers, outlet malls and other retail centers to indicate the amount of floor space available to be rented. . Presently the mall is anchored by Saks Fifth Avenue Saks Fifth Avenue is a chain of upscale American department stores that is owned and operated by Saks Fifth Avenue Enterprises (SFAE), a subsidiary of Saks Incorporated. It competes in the elite luxury department store market with Neiman Marcus, Bergdorf Goodman and Barneys New and Hyatt Regency Hotel The Regency Hotel was a hotel in Denver, Colorado. Built in the 1960s to serve as a regional convention center, it was famous locally for its large gold dome and the luxury of the rooms within. . (The Hyatt is not owned by Legacy.) The property was purchased for $13.3 million as a redevelopment opportunity. A portion of the property formerly occupied by I. Magnin I. Magnin was a San Francisco, California-based high fashion and specialty luxury department store. Over the course of its existence, it expanded across the West into Southern California and the adjoining states of Arizona, Oregon, and Washington. will be demolished and rebuilt to house a 3,000 seat, 15 screen theater operated by Metropolitan Theaters. The remainder of the mall will be completely remodeled into an open air entertainment/restaurant/retail center and expanded to approximately 315,000 square feet. The center also includes one of the only parking garages in Palm Springs. Other tenants currently include California Pizza Kitchen California Pizza Kitchen (NASDAQ: CPKI, known within the food industry as CPK) is a casual dining restaurant chain that specializes in California-style pizza. The restaurant was started in 1985 by attorneys Rick Rosenfield and Larry Flax in Beverly Hills, California, , The Limited and Sharper Image. Legacy also announced the acquisition of a 17 story, 156,000 square feet office tower and a 2 story, 2,500 square feet retail building. The Canadian office complex was purchased for (U.S.) $6.2 million, or approximately $27.25 per square foot. Current net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. is approximately $637,000 with a current vacancy of 18%. The strategy for the building is to take advantage of the tightening market in Winnipeg by increasing rental rates, leasing the vacant space and selling the building. The project was purchased in joint venture with the Ellman Companies. "These two projects are part of a strong pipeline of opportunities for Legacy," said Gary B. Sabin Sa·bin , Albert Bruce 1906-1993. American microbiologist and physician who developed a live-virus vaccine against polio (1957), replacing the killed-virus vaccine invented by Jonas Salk. , chairman of Excel Legacy. "The acquisition costs per square foot, the improving demographics and the current rents create tremendous value. Desert Fashion Plaza in the heart of Palm Springs allows us to reposition a property with an excellent location and remarkable property value. The Winnipeg office tower is likewise a tremendous value when analyzed by all traditional real estate measures." Legacy is a public real estate company organized to create value through the acquisition, development and management of real property and real estate related operating companies.
CONTACT: Excel Legacy Corporation
Graham R. Bullick, 619/485-9400 ext. 203
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