July 15, 2024

Simon starts on 420 units at Northgate Station … then what?

Images via Simon Property Group [enlarge]

This view looks west at the hill climb separating the two buildings.

As the DJC reported last month, Simon Property Group has begun work on its initial two apartment buildings at Northgate Station. The ceremonial groundbreaking came last Thursday, with various representatives from Simon, the city, architect GGLO and Compass Construction on hand.

At 10523 Fifth Ave. N.E., the middle two of four planned midrise apartment buildings are informally dubbed M2 and M3. They'll be phased, likely opening in 2026 and 2027, with about 420 units, 569 parking stalls (mostly structured) and retail.

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The ceremonial groundbreaking was held last week. Simon’s Patrick Peterman is second from right, in the blue blazer. Note the crane in the background.

So, what comes next? Simon's Patrick Peterman told the DJC on Thursday that the company is “not in a hurry” on future components of the 55-acre mall makeover. The first hotel, closest to the freeway and light-rail station, should open next spring as a Residence Inn by Marriott. That's topped out, on the west side of the property, with the crane still in place.

The second hotel, in the north-middle portion, could then begin in the next 12 months, says Peterman. DLR is the architect; no builder is attached.

That could proceed at the same time as some smaller commercial buildings — meaning restaurants, retail and entertainment. Those would be clustered around the Kraken Community Iceplex and Central Park, slightly to the west. Simon works directly with tenants, with no outside brokers, on both speculative retail buildings and build-to-suit jobs.

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The middle two of four planned midrise apartment buildings are informally dubbed M2 and M3. They'll be phased, likely opening in 2026 and 2027.

There's no schedule for the north and south apartment buildings along Fifth. Nor is there any schedule for the office buildings in the city-approved master development plan. Given the abysmal state of the office market, might those plans be changed?

Simon has about 12 years left on its 15-year MDP, Peterman explains, by which time the office market may eventually recover. If not, they could be marketed as life-science or medical buildings. “We're open to it,” he says.

Simon has the luxury of setting its own schedule. “We're gonna take our time,” he says. “We have no debt, no partners. We own the land.” Accordingly, there's no rush to get to the north third of the property (think: Barnes & Noble), which isn't covered by the MDP.

For the initial two apartment buildings on Fifth, Compass is now at work on the shoring and large structured garage, around which the apartments will wrap. The project should get above grade, says Peterman, in about six months.