Building Trades News

$369-Million, 900,000 Square-Foot Mixed Use Project in Downtown Glendale Built with Union Labor

The Americana at Brand project, Caruso Affiliated’s massive $369 million mixed-use project in Glendale is on track for its spring 2008 opening. Demolition of the buildings on site was completed in March 2006; grading began on the project a month later and construction started in August 2006. The project, which has also been called "The Grove East" after another of Caruso’s successful retail developments, will redevelop 15.5 acres of formerly underutilized and blighted properties to create a new southern anchor in southern downtown Glendale, complimenting the Galleria and the shops and entertainment located on Brand Boulevard.

This mixed use project will include 475,000 sq. ft. of retail, entertainment, and restaurants with 338 residential housing units. Being built under a union PLA, the Americana will be four times bigger than The Grove, which draws an estimated 18 million visitors annually, according to Caruso Affiliated. It will feature 238 apartments, 100 luxury condominiums, a 16-screen Pacific Theatres cinema, 75 upscale shops and boutiques, casual and finedining establishments and a nearly 2-acre park at the center of it all. "The park is going to be a place where you can go hang out, meet with friends and family, go for a stroll down Brand Boulevard and get a bite to eat, and just spend some down time," Developer Rick Caruso said.

Decorative touches include copper roofs and a steel tower to gas street lights and a public fountain similar to the one found at The Grove. Most of the retail space at the Americana has already been leased. In addition, the project has greatly increased the interest of major retailers in downtown Glendale who are hoping to capitalize on the expected foot traffic the American is expected to generate. The project seems to be bringing in a new brand of retailer to the city, said Judee Kendall, executive vice president of the Glendale Chamber of Commerce.

 "They’re a little more upscale, a little trendier," Kendall said. "(Caruso) has put together a very attractive roster of tenants - you wouldn’t expect him to do anything else," said Jack Kyser, chief economist for the Los Angeles Economic Development Corp. "With the Galleria and this group of retailers, it will make Glendale a retail magnet." Todd Russell, senior vice president of retail leasing and marketing at Caruso, said the Americana doesn’t intend to duplicate what’s already happening at the Galleria. The indoor mall with department store anchors Macy’s and Nordstrom will add Target among its tenants in the coming year. "Glendale is just a robust community that’s desirous of better retail," he said. "At this point it doesn’t exist in this market. ...

The Galleria does a good job with the moderate mix. We do not intend to do that. It’s all about creating something new." In addition to eliminating blight, the project will produce a significant new source of revenue to the City of Glendale. When completed, the project will conservatively generate approximately $3.8 million annually from sales and property tax. Glendale invested $77.1 million into the project, mostly through land entitlements. The retail portion of the Americana at Brand project will add to the city’s employment base.

The project is expected to generate up to 1,700 jobs. The residential component will add 338 housing units to downtown, households Caruso’s Americana Continued from page 1 that will shop Brand Boulevard and patronize local businesses. Special thanks to then-Mayor Frank Quintero who demanded that the project be built under a PLA. "I think the impact of Americana is going to be a positive one and that is one of the reasons I fought so hard during the election to get it approved," Councilman Bob Yousefian said.

"It is already having an impact in terms of bringing developers into the city to put their hard-earned cash up for purchasing properties so they can develop them. It is very apparent that, because of Rick’s project, some of the bigger developers are not afraid of coming here. They think that if Rick Caruso is willing to take a chance on our city, it’s a pretty good bet." Glendale Galleria owners General Growth Properties tried to block the project. In 2004 they filed suit challenging its environmental approvals and arguing that two buildings to be demolished on the site were historic. But a Los Angeles Superior Court judge’s rejection of the case in January 2005, and a state appellate court’s subsequent ruling against General Growth in November 2005, cleared the way for the Americana’s construction.