Results tagged “residential” from Raincross Square

Then & Now - Riverside Town House

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Then & Now
Riverside Town House: 1950s - 2009
Flash: View photo overlay

We know little of the history surrounding the block bounded by Fifth, Sixth, Lemon and Lime streets in downtown Riverside, but a 1948 aerial photo shows the entire lot devoid of development, with grass, shrubbery and some trees as well as a few walking paths. Although it's likely the block once contained at least a few homes, the 1948 aerial gives the impression the lot had recently become an impromptu neighborhood park.

In December 1948, however, a building permit was issued for a 96-unit apartment complex, which would encompass the entire block. According to the permit, the applicant (and owner) was Mr. J.J. Goldbach, who listed a McAllister Ave. address in the Arlington area of Riverside. The permit also lists architect William F. Mellin, A.I.A., of 671 "D" Street in San Bernardino.

The "Riverside Town House" project, which was given an address of 3489 Sixth Street, was initially valued at $500,000, resulting in permit fees of $292.00.

Nearly 60 years later, excepting for the addition of utility lines, the much taller palm trees and a few re-positioned light poles, it appears little else has changed.

Flash: Riverside Townhouse: 1950s - 2009

More: RaincrossSquare.com - Then & Now


After decades of nearly unfettered sprawl, the time has come to seriously begin changing the basic developmental patterns of Inland Southern California.

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2006
Corona Pointe
Corona

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2006
Crossroads Corporate Center
Murrieta


Ontario

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Downtown Riverside
MetroPacific Properties, LLC

Gone should be the days of leap-frogging, low-density development. In its place, should come more balance, both in densities and in types. More mid- and high-rise development coupled with higher percentage of business and commercial projects (and less residential).

As previously mentioned (one | two), we're not suggesting New York City style mega-density, but pockets of moderate densities -- particularly in downtown Riverside and around Ontario Airport -- similar to those found within the downtowns of Pasadena, Glendale, Santa Monica and Long Beach.

If the recent recession has demonstrated any major weakness within Inland Southern California, it's the region's lack of commercial maturity and continued reliance upon warehousing and residential development as its primary form of economic growth. Not only has such dependence created an unbalanced (and unreliable) economic engine, it's left the region with an unbalanced (and wasteful) landscape, one dominated by sprawling development and ever-growing commutes.

Quite simply, area residents, builders and government officials alike must begin accepting -- and more importantly, insisting -- on better quality, higher density, more diverse development patterns focused more around jobs and less on housing tracts. Moreover, such future development needs to be coupled with -- and encourage -- alternative transportation, else this region will remain a land of nightmarish commutes.

However, amid the hardships of the current economic downturn lies a silver lining. Or better yet, think of it as a golden opportunity. A chance for Inland Southern California to catch its breath, re-focus and begin adding balance back to the region's landscape. Fortunately, a smattering of projects, both built and proposed (some of which are stalled due to the current economic climate) may signal change is afoot. But just as it took several decades to get to where we are today, it will likely take several to re-balance. But without a doubt, the transformation needs to begin sooner rather than later.

Thus, the question remains -- will we take advantage of the current slowdown to begin addressing and planning for the region's long-term, sustainable economic and lifestyle needs? We think the clear answer is -- can we afford not to?

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Fox Plaza approvals spur lawsuit

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As expected, a lawsuit was filed recently by a local preservation group aimed at reversing city council approvals on a portion of the mixed-use Fox Plaza proposed for downtown Riverside.

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Project site
MS Virtual Earth

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Fox Plaza - overview
MetroPacific Properties, LLC

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Phase One site of Fox Plaza
will include a Hyatt Place hotel
MetroPacific Properties, LLC

The preservation group -- Old Riverside Foundation -- seeks to challenge the council's approval of the project's overall EIR, saying the city failed to fully address the project's impact under CEQA. In particular, the group says the report downplays the loss of what they deem are several historic buildings:

"Our objective is to integrate the historic buildings into the design of Fox Plaza," (President David Leonard) said. "There has never been such a degree of removal and demolition of historic buildings in a downtown district as Fox Plaza represents."
The Press-Enterprise - 07/18/2008

Located on prime parcels along Market Street between Fifth Street and Mission Inn Avenue, the three-phase Fox Plaza is the largest of three mixed-use projects currently in various stages of development in downtown. Plans for Fox Plaza include upwards of 532 residential units, 76,000 sq. ft. of restaurant/retail space, a Hyatt Place hotel and 1,693 spaces of underground/garage parking.

What's not fully clear is how the lawsuit will affect some or all of the project's already-approved first phase planned for what is currently an asphalt parking lot. Located on the east side of Market Street between Fifth and Sixth streets, phase one is to include a 337 space parking structure surrounded by 40 residences and 8,200 sq. ft. of commercial space. Also included is the aforementioned Hyatt Place hotel.

As we've previously stated, we do have mixed feelings on the loss of a few of the buildings associated with the development and even commend the preservation group for at least bringing attention to the matter. However, none of the buildings slated for demolition have been officially designated as "historic" by the city (though a few -- most notably, the Stalder Building -- have been noted as having historic "merit"). And although some in question have their own unique qualities (one, two), we feel none quite reach the significance -- even in a cumulative manner -- the likes of the 1924 City Hall, 1928 Arcade Building or the 1912 Post Office (Riverside Metropolitan Museum).

With that said, we're all for trying to better incorporate any and all of them into Fox Plaza -- however, not at the expense of killing the entire project, one we feel is a vital component to the long-term vitality of downtown Riverside. At the very least, we're hopeful the first phase -- which requires no demolition -- will proceed as planned. Considering the current economic climate, it's quite likely to be the only phase viable within the short term.

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After a month-long delay in receiving Planning Commission recommendations, the Riverside City Council this past Tuesday approved a portion of Fox Plaza, the large mixed-use project proposed for downtown.

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Phase One site of Fox Plaza
will include a Hyatt Place hotel
MetroPacific Properties, LLC

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Fox Plaza - overview
MetroPacific Properties, LLC

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Project site
MS Virtual Earth

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2007
Stalder Building

Located on three key blocks along Market Street, between Fifth Street and Mission Inn Avenue, the first phase will include a 337 space parking structure surrounded by 40 residences and 8,200 sq. ft. of commercial space. Also included is a Hyatt Place hotel, which had previously received approval.

The council also approved the project's overall environmental impact report, but did not give final approval to additional phases. In particular, the council has requested the developer -- MetroPacific Properties LLC -- to revise the portion proposed for the Stalder half-block on Market Street between Sixth Street and Mission Inn Avenue.

Members from both the Planning Commission and City Council expressed the need for scaling back the Stalder portion of the project, particularly near the corner of Market Street and Mission Inn Avenue so as to not overshadow the historic Fox Theater across the street. The developer has agreed to revise this portion, which will require future review from both the Planning Commission and City Council, but has not committed to saving the Stalder Building, which a local historical preservation group is pushing for.

We're glad to see the first phase move forward. Currently, the site is an uninviting asphalt parking lot, and indeed, the least contested part of the project. We're also glad to see some attempts to better incorporate the Stalder into the development. However, we do not want to see large-scale setbacks applied to the project, which could end up producing a more suburban-styled building.

In short, we admit to having mixed feelings on some elements of the overall project, including the potential loss of a few older buildings, each with their own uniqueness and histories. But the bottom line is we think the mixed-use Fox Plaza -- particularly along the eastern side of Market Street -- offers a potentially more vibrant and balanced environment, which we feel downtown needs in order to better survive and compete in the coming decades.

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Update


Votes on Fox Plaza delayed

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Last week, two city commissions delayed for a month their votes on the much anticipated Fox Plaza development proposed for downtown Riverside.

Members of both the Cultural Heritage Board and Planning Commission -- comprised of city-appointed residents -- said the postponement was necessary until after the public comment period for the Draft EIR is closed. Once voting is complete, their recommendations will be forwarded to the City Council for further consideration.

Located on prime parcels along Market Street between Fifth Street and Mission Inn Avenue, the three-phase Fox Plaza is the largest of Riverside's mixed-use developments planned for downtown. With upwards of 532 residential units, 76,000 sq. ft. of restaurant/retail space, a Hyatt Place hotel and 1,693 spaces of underground/garage parking, the project is expected to boost downtown pedestrian traffic, particularly after-hours and during the weekends:

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Fox Plaza - overview
MetroPacific Properties, LLC

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Fox Plaza - Hyatt Place
MetroPacific Properties, LLC

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2007
Stalder Building
Cindy Roth, president of the Greater Riverside Chambers of Commerce, said downtown is empty after 5 p.m. and Fox Plaza would spark nighttime vitality.

"This project is instrumental to downtown going forward," Roth said.

...

"I think it really is a major step in the right direction," Cultural Heritage Board member Dave McNiel said.

The Press-Enterprise

Thus far, only the Hyatt Place hotel has received City Council approval. Proposed for across Fifth Street from the 12-story Marriott, the hotel should help bolster multi-day bookings at the adjacent convention center.

Though we have high hopes for the project and its potential to strengthen downtown's recent re-emergence, some have questioned its scale:

"Six floors are not compatible" with surrounding buildings, (Planning) commission member Tim Maloney said.

The Press-Enterprise

We agree the scale is a bit large relative to some surrounding uses. However, the project's height of 6 and 7 stories falls well below the area's tallest structures. Likewise, the density is more than appropriate for downtown, where suburban densities -- and setbacks -- simply do not belong.

Moreover, both the city and residents alike must begin accepting limited amounts of higher densities in the downtown core, if only to help bring more balance to the current landscape -- and choice to the marketplace (both commercial and residential). As we've stated before, the city simply cannot continue building outward.

Finally, though it'll be difficult seeing the loss of the Stalder Building, which once housed the city's first permanent fire station in the 1890s and sports a 1926 facade unification by noted Riverside architect G. Stanley Wilson, we believe the long-term potential of Fox Plaza is worth the compromise.

PDFs: Draft EIR - Project Description (4.8 mb) | Project Alternatives (488 kb)

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Growth as usual?

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Last month, a report issued by the California Department of Finance indicated Inland Southern California will likely double to 8 million residents by 2050. Whether all 4 million new residents show up within the next 40 years or not, recent history indicates the region can still expect a large influx of new residents.

As we previously noted, the million-dollar question is whether Inland Southern California will follow current patterns and continue sprawling farther outward? Or, will local officials, developers and residents alike begin accepting the need to begin growing smarter?


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The good
San Bernardino


2007
The not so good
Menifee
Google


2007
The better
Downtown Riverside

Two recent news items may give an indication of where we're headed. One article gives us hope that change is coming, specifically that both local governments and developers are beginning to add density -- and diversity -- to their mix of projects. The other article, however, gives us cause for concern and points to the notion that it is -- and will be -- "business as usual" in the ever-sprawling Inland region.

First, the good. Banking giant Wells Fargo recently announced the consolidation of various offices scattered about the region into a single, 5-story office building in the Hospitality Lane area of San Bernardino. Although we would have preferred to see the consolidation take place within downtown San Bernardino -- or even downtown Riverside -- the Hospitality Lane area indeed is a very successful campus-style commercial development. As such, its densities are not quite that of a downtown area, but at least a single 5-story building beats five, 1-story tilt-ups taking up five times the land area.

Second, the not so good. A recent article highlighted developers looking ahead toward the next wave of housing growth -- specifically, where it'll likely take place. In our opinion, the article displayed several problems for the future of this region if current development patterns are not changed sooner rather than later.

In particular, two aspects concerned us the most. One, the fact that most developers tend to be eyeing residential projects (as opposed to a balance of housing and employment projects):

Even amid the biggest housing slump of the past decade, Inland developers and planners are not asking if or when the market will rebound -- but where.

... Economists have forecast the housing market may not pick up until the end of next year at the earliest. In the meantime, some developers have turned their attention to commercial and industrial real estate, while others are focused on acquiring land to hold.

The Press-Enterprise

And second, that such development will likely be sprawling, single-family oriented development, simply gobbling up the next available tract of land:

...Most developers acknowledge there are obstacles to overcome in sprawling development -- from getting water to all the new homes to alleviating extra traffic on the freeways -- nevertheless, they say, growth will occur.

The Press-Enterprise

We feel these two notions must begin to change, most notably at the local government levels. Simply put, local governments must begin decreasing sprawl-oriented development, especially in the residential arena, as well as increase zoning for future employment centers, else the region will predominantly consist of sprawled-out bedroom communities -- and long commutes:

Much of the attractiveness of southwest Riverside County comes from its position between Riverside and San Diego, said Randall Lewis, executive vice president of Upland-based Lewis Group of Cos., another developer involved in several projects in that portion of the county.

"That means it's got a big commuter market," he said.

The Press-Enterprise

Is being even more of a "commuter market" what we really should be planning -- much less aiming -- for?

Bottom line here is that it's a lot easier -- and cheaper -- to zone ahead for impending commercial/employment uses now rather than having to rezone/redevelop pockets of existing residential uses later (which some of the region's older cities may find, in some instances, is closer to reality than they realize).

Fortunately, there is some hope as Riverside County is working to tackle the jobs/housing imbalance where it counts -- in land-use matters. With its Riverside County Integrated Project (RCIP), Riverside is attempting to manage future growth by simultaneously planning for it at three interdisciplinary levels: environmental, residential/commercial and transportation.

The crux of the plan essentially trades pockets of density for increased open space. As such, the pockets of moderate density keeps development from sprawling as well as allowing for the potential for varied transportation options -- namely, transit (think Metrolink versus freeway). However, the RCIP applies to the unincorporated areas of Riverside County and not the already established cities, so it's not an all-inclusive solution. Moreover, will the county and developers reasonably follow the "blueprint for tomorrow" as outlined?

As previously stated in a recent post, we're not envisioning New York City densities, but limited pockets of greater intensity, particularly in the existing downtown areas of Riverside and San Bernardino and portions of Ontario. In essence, we're simply going to have to begin accepting more mid- and high-rise projects.


In other words, it's time to begin growing up, both figuratively and literally.

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Time to grow up

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If population projections released this past week come to fruition, Riverside County will be the second most-populous county in California by 2050, ranking behind only behemoth Los Angeles County.


2006
Downtown Riverside


2006
Piemonte
Ontario

The report, issued by the California Department of Finance -- the folks responsible for statewide fiscal planning and demographics -- says Riverside County can expect to house 4.7 million residents in about 40 years. This would move the county from its current spot as the fourth most-populous to the No. 2 spot, with only Los Angeles County's projected 13.1 million being larger (indeed, much larger). San Bernardino County is projected to remain the fifth most-populous with 3.7 million.

If recent history is a guide, however, one thing is certain -- we cannot simply ignore the potential numbers. Although there's no guarantee that all 2.5-plus million residents will actually arrive as projected, there's no doubt Riverside County will still absorb a large amount of future growth (as we've learned over the past 40 years). So too will San Bernardino County. Thus, ignoring the growth is not the answer -- but aggressively planning for it is.

Therefore, the question is, will local officials and residents alike simply allow development to continue sprawling outward? Or, will we begin to realize -- and accept -- the time has come to begin growing upward?

In our opinion, we do not see any other option but upward. We're not talking a forest of 50-story towers. Instead, we're envisioning pockets of mixed-use, higher density developments consisting of modest 15-, 20- and 30-story buildings, mostly in the existing downtowns of Riverside and San Bernardino and possibly even Ontario. Likewise, we hope to see smaller clusters consisting of 5-, 10- and 15-story buildings in some portions of Corona, Rancho Cucamonga, Fontana, Moreno Valley, Temecula, Murrieta and even Redlands. Such would greatly increase future options in living, working, transportation and cultural amenities while still maintaining the viability of existing lifestyles. In essence, simply adding balance to the current landscape.

Census: 2050
California's 10 most-populous counties
(w/ 2000 ranking)

Indeed, Inland Southern California cannot continue spreading outward, if only for two major reasons -- lack of efficient, multi-modal transportation and the need for stronger, more diversified employment centers. It's becoming more evident that continuing current development patterns is simply too expensive -- everything from environmental concerns and infrastructure constraints (think: freeway gridlock) to overall quality of life.

Quite frankly, do we really want our children and their children to spend countless hours commuting to LA, Orange and San Diego counties as many of us and our parents before have done? Whether it be for employment or even entertainment purposes, we think the smart answer is an emphatic "No."

Thus, it's now time to grow up.

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Mixed-use projects picking up steam

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Activity has picked up recently at 2 of 3 mixed-use projects under development in downtown Riverside, which will be the first combined residential/commercial projects within the city in several decades.


2007
Raincross Promenade


2007
m sole'


Fox Plaza
MetroPacific

At Raincross Promenade, bounded by First, Third, Main and Market streets, site clearing is well under way. Situated across from the city's convention center at Raincross Square, the site had been home to assorted auto repair shops, used car lots (1, 2), an aging "rental" motel as well as a few dilapidated homes and a couple of empty parcels.

Planned by Los Angeles-based developer Mark Rubin, whom has developed various projects in Riverside, Raincross Promenade will add upwards of 250 urban-style residential units on 2-blocks that will essentially anchor the north end of the Main Street pedestrian mall. Although we have yet to see precise plans, our hope is the development is such that it "draws in" the existing pedestrian mall, which currently fizzles out at the convention center.

Directly across Market Street, where developer Alan Mruvka is planning a similar mixed-use project, foundation work has begun on 10 live/work units as part of the first phase of m sole'. Mruvka plans upwards of 125 urban-style residential units in later phases, stretching along Market Street from Third to First streets (essentially mirroring Raincross Promenade).

Thus far, m sole' is the only one of the three to begin actual construction, let alone offer pre-sales (an information studio is currently housed within the historic Sante Fe depot located near Mission Inn Avenue and Vine Street).

Yet to break ground is the third mixed-use development planned for downtown, this one the eagerly anticipated Fox Plaza located at Mission Inn and Market. Included in the multi-phase plans are upwards of 500 urban-style residential units, 65,000 square feet of retail and a 130-room, full-service hotel. Currently, the site is occupied by the Stalder Building and various parking lots.

Situated near the heart of the pedestrian mall adjacent to restaurants, shops, museums and downtown offices -- not to mention some of the city's best historic architecture -- Fox Plaza will offer one of the few truly urban experiences within Inland Southern California. The one downside will be the loss of the historic Stalder, which once housed the city's first fire station.

Although all three projects are within a few blocks of one another and each will indeed strengthen the city's re-emerging urban core, we feel Fox Plaza has the greatest potential. Moreover, we're glad to see alternative options being added to the area's predominantly single-family residential landscape. And, we feel no place is better for such options than within a genuinely historic downtown setting, one which needn't be "manufactured" nor "created" as is the case with many similar mixed-use developments around Southern California.

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Ontario's New Model Colony

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13 square miles; 8,200 acres; 30,000 homes; 120,000 residents -- it all adds up to Ontario's "New Model Colony."


New Model Colony
The Press-Enterprise

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Flash: Edenglen slideshow

Expected to be developed in stages over the next 20 years, Ontario's New Model Colony will add large swaths of upscale neighborhoods to the predominantly business class city, which has been working at updating its general plan and assembling specific plans for the area since annexing it in 1999.

Located on former -- and existing -- dairyland that was once part of the San Bernardino County Agricultural Preserve, the NMC lies south of Riverside Avenue, between Euclid and Milliken/Hamner avenues and north of Merrill and Bellgrave avenues, adjacent to Eastvale and Mira Loma in Riverside County.

The first neighborhood -- Edenglen -- opened this past weekend and consists of 542 residences (277 single family / 307 multi-family) on 160 acres. The builders of this first NMC neighborhood are Brookfield Homes and Standard Pacific Homes.

Situated adjacent to Colony High School, Edenglen comprises 3 tracts of homes (The Cottages, Gatehouse and Veranda) plus 2 townhome/condo tracts (Belcourt and Portico). Sizes range from 1,054 sq. ft. at Belcourt to 4,314 sq. ft. at Veranda. Unique to the development is the use of alleyways to access the garages, leaving many of the homes to front the streets sans driveways.

Along with the homes comes a neighborhood clubhouse (with outdoor barbeques), community swimming pool and Pinheiro Park, which is named after the family whose dairy farm once stood on the land.

"We're building a city here, and this is the first community in the city," (Brookfield Homes president, Adrian) Foley said. "And hopefully, we'll pave the way for what comes behind it."

Ontario Daily Bulletin

Prices at Edenglen start in the low $300,000s and reach the mid $700,000s.

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Moving dirt at m sole'

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Grading began this past week on the first phase of the mixed-use m sole' project in downtown Riverside. When completed, m sole' will include up to 154 residential units and 7,000 square feet of ground-floor retail stretching along the west side of Market Street between Third and First streets.


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Phase one grading


2006
Phase one info


m sole'

Phase one consists of 10 live/work units slated for the northwest corner of Third and Market streets -- near the convention center and across from the relatively new CVS and Starbucks. The units range in size from 1600 to 1850 sq. ft. (with work spaces of 200 to 600 sq. ft.) and are priced at $645,000 ($495,000 for the living space and $150,000 for the work space).

Later phases of the project will include a 24-hour concierge desk, pool, clubhouse, fitness center as well as a wine cellar. Developer Alan Mruvka has opened an information studio located inside the historic Sante Fe depot located at the corner of Mission Inn and Sante Fe avenues.

The $50 million m sole' development marks the beginning of what city planners envision as the transformation of six blocks of Market Street between Mission Inn Avenue and First Street.

Two other mixed-use developments along this same strech of Market include Fox Plaza, which is scheduled to break ground shortly, and one planned by Los Angeles-based developer Mark Rubin.

Already in the works is the $30 million renovation of the historic Fox Theater, which the city hopes to have completed by late 2008. The 1929 theater, situated a block west of the historic Mission Inn, will be transformed into a 1,600 seat performing arts center.

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Phase two site

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Phase one site

2007
Starbucks

2007
CVS

2007
Market Street

Out & About - 01/21/2007

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Correction: The name of the Stalder Building was misspelled when originally posted

Sunday, January 21, 2007 - If one visits downtown Riverside, as we did today, they will notice the historic Fox Theatre is now fenced off, awaiting a $30 million renovation. As one of the centerpieces of the $780 million Riverside Renaissance Initiative -- which outlines 25 years worth of citywide projects in about 5 -- the Fox will receive a complete makeover, transforming it into 1,600 seat performing arts center.


2007
Fox Theatre
Mission Inn at Market


Fox Plaza
MetroPacific

Opened in 1929, the Riverside Fox was once a favorite place for Hollywood studios to screen movies prior to their release. Studio executives felt the area better represented American audiences more so than patrons in Hollywood. One such sneak preview was "Gone With the Wind" in 1939.

Across the street from the Fox Theatre is the Stalder Building, which is actually three buildings unified into one facade via a 1926 renovation. A portion of the building once housed the city's first permanent fire station (1890s).

Over the years, the configuration of the building has been significantly altered, resulting in as many as 8 storefronts along Mission Inn Avenue plus a few along Market Street. Recently, it has become a mix of mostly small antique shops, including the popular Mr. Beasley's.

Come March 1st, however, the stores will be fully vacated in preparation for Fox Plaza, a mixed-use development planned for the site that includes residential and commercial with underground parking.

Expected to break ground in 2007, Fox Plaza is a $200 million development that when fully built will add 500 residential units and 65,000 square feet of retail space along two blocks of Market Street from Mission Inn Avenue to Fifth Street. Also included in the 2-phase plan is a 130 room, full-service hotel.

Though it's difficult to see one of Riverside's oldest buildings come down, we're eagerly anticipating Fox Plaza, which no doubt will be a significant and unique addition to downtown. If Riverside truly hopes to have a more balanced and livlier downtown, particularly after 5 p.m., developments such as Fox Plaza and m sole that include residential units are indeed necessary.

Flash: Out & About slideshow

Photo Gallery: Stalder Building

Updates


2007
Fenced-off Fox

2007
Stalder (left) and
Loring buildings

2007
Sign of the times



2007
Final Sale

2007
View west toward
Market Street

4 million and counting

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New figures released last week by California Department of Finance indicate that both San Bernardino and Riverside counties each passed the 2 million mark in population in 2006, making the two counties the 4th and 5th most-populous counties respectively in California. It also signals Inland Southern California has reached the 4 million mark in overall population, which places the region between San Francisco-Oakland-Fremont and Phoenix-Mesa-Scottsdale in national population rankings.

Although growth rates in the state as a whole have slowed recently (only 1.25% last year), the interior sections of the state -- and in particular Inland Southern California -- are indeed bucking the trend.

Overall, Riverside County was the only county in the state to rank in the top 5 in 3 demographic criteria -- overall size (5), numeric growth (1), and percentage growth (2).

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Corona

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Rancho Cucamonga

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Riverside

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Victoria Gardens
Rancho Cucamonga

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Galleria at Tyler
Riverside

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2006
Murrieta

Percentage wise, Riverside's growth rate of 4.14% between July 2005-06 was second only to the 4.42% of tiny Yuba County (total pop. 71,938 -- less than the 2006 numeric gain in Riverside County alone). San Bernardino County's growth rate of 2.13% was good for 14th, joining Riverside as the only counties in excess of 1 million residents in the top 15 (of 58 counties) in growth rates.

Numerically speaking, Riverside led all counties in California with an additional 79k residents. San Bernardino was third with 41k additional residents. Together, the increase of 121k for the 2 counties -- a.k.a. Riverside-San Bernardino-Ontario MSA -- comprised 26% of the total numeric increase (462k) statewide.

Since 2000, Riverside County has added 446k new residents while San Bernardino County has added 294k -- a total of nearly 750k, or nearly 25% of California's total population growth (3.3m) since the 2000 Census. As such, the region is on track to add at least 1 million residents between 2000-2009 -- or about the population of metropolitan Buffalo, NY.

The large increase in population has resulted in a commercial boom as well. Long an area of strong industrial/warehousing growth, the region has seen a recent surge in both retail and office space as the markets scramble to catch up with the rooftops:

Growth has been a theme for industrial, office and retail construction in Riverside and San Bernardino counties this year, and more of the same is to be expected in 2007, according to a new review and forecast by Grubb & Ellis Co.

Vacancy rates should be at record lows in the Inland region, the report says, and more square footage is under construction than ever before...

...Esmael Adibi, chief economist for Chapman University, said the Inland commercial real estate market has been excellent. There wasn't as much office construction as there should have been over the past decade, he said, and therefore growth over the last couple of years has been building up toward demand.

The Press-Enterprise

Since 2004, two major retail developments have opened (Victoria Gardens, Dos Lagos), one has been rebuilt (Riverside Plaza), one is currently undergoing a major expansion (Galleria at Tyler) and at least 3 others (Montclair Plaza, Temecula Promenade and Inland Center) are planning expansions. Likewise, the area immediately surrounding the Ontario Mills continues to be a draw for new retail.

In particular, Dain Fedora of Grubb & Ellis', points out the pent-up demand for high-end retail in the city of Riverside:

Riverside, he said, is likely to become a nexus for new high-end retail, because it boasts 90,000 households with incomes of at least $79,000.

The Press-Enterprise

Thus, we give a hearty welcome to the newcomers -- residents, retail and employers alike (and those yet to arrive).

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Population Boom

County July 2000 July 2001 July 2002 July 2003 July 2004 July 2005 July 2006 Gain
Riverside 1.558* 1.621 1.685 1.766 1.845 1.924 2.004
+63k +64k +81k +79k +79k +80k +446k
4.04% 3.96% 4.80% 4.45% 4.30% 4.14%
San Bernardino 1.722* 1.771 1.815 1.869 1.923 1.974 2.016
+49k +44k +54k +54k +51k +42k +294k
2.83% 2.50% 2.98% 2.88% 2.63% 2.13%
Combined 3.280* 3.392 3.500 3.635 3.768 3.898 4.020
+112k +108k +135k +133k +130k +122k +740k
* millions
Source: California Department of Finance (Dec. 2006)

Inland growth driving SoCal region

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Inland Southern California's growth continues to lead the six-county Southern California region according to an annual report released by the Southern California Association of Governments (SCAG).

Although the State of the Region report says the Inland area's home affordability index is fast dropping inline with its coastal neighbors, the area continues to attract both jobs and population, many arriving from elsewhere in the nation:

Nearly half of the 222,000 people who moved to Southern California last year chose to live in the Inland Empire, according to the annual assessment. Riverside County alone welcomed 65,000 new residents, increasing its population by 3.4%...

...New residents are moving to Riverside and San Bernardino counties from elsewhere in the United States, the study showed, bucking a larger regional migration trend...

...Last year, almost half of the 120,000 jobs created in Southern California were in the Inland Empire, making it the region's leading job generator, the study said.

Los Angeles Times



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2006
Corona Pointe
Corona

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2004
Tri-City Corporate Center
San Bernardino

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2006
Crossroads Corporate Center
Murrieta

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2006
The Ontario Center
Ontario

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2006
The Press-Enterprise
Downtown Riverside

Even with the job growth, however, Inland Southern California still "exports" a significant number of workers each day to job centers located in LA, Orange and San Diego counties, which combined with the population growth, is creating worsening conditions on local freeways. On a good note, the report states that carpooling rates are rising across the six-county region, with the Inland area leading the push (Riverside County led all counties with 16% of workers carpooling while San Bernardino came in second with 14.6%). In detail, the report notes 2-person carpools dominate 3+persons (80% vs. 20%).

The report also states that ridership for Riverside Transit Agency increased 15% to 7.4 million while Metrolink boardings increased 9%, reaching an all-time high of 10 million. Moreover, the continuing popularity of Metrolink's San Bernardino Line bodes well for the proposed extension of Los Angeles County's "Gold Line" rail into eastern San Bernardino County.

Even with the gains in alternative transportation, there's no doubt that in the short term road capacity needs to be expanded, if only to keep up with the current and projected population growth. Long term, however, the solution is to continue increasing alternative transportation and, more importantly, begin exporting fewer employees by creating better-paying job centers locally within the two counties.

Already, the immediate area surrounding Ontario International Airport -- where 21% of Southern California's air cargo passes through -- is sprouting more offices. Likewise, Corona has also seen healthy job growth, including the city's first steel-framed office buildings. Down I-15 in Temecula and Murrieta, similar office growth is taking shape. Farther east, San Bernardino's Tri City/Hospitality Lane office parks continue to thrive as well. And the I-215 corridor near March Air Reserve Base is beginning to assume the reigns from Ontario as the area's next logistics growth spot.

One of the most promising spots for long-term, quality mixed-use, "smart growth" indeed is downtown Riverside, wherein the necessary infrastructure is already in place for supporting a variety of residential and employment centers. From federal, state and local government entities, professional support services, transportation choices, cultural amenities and even a nearby UC campus, downtown Riverside is poised to take off as one of Southern California's hot spots. Downtown has seen a few modest office projects built within the past few years, but it's still awaiting the high profile, signature project that will re-christen the downtown market.

Finally, with a population of nearly 4 million, the report states Inland Southern California now accounts for 22% of the total population within the six-county** region, again signaling the Inland region now ranks ahead of neighboring Orange County (Los Angeles County leads with 56% of the total population).

Other highlights:

  • Inland employment reached 1.23 million, adding nearly 225,000 jobs since 2000 and 500,000 since 1990 -- an increase of 68% (versus 12% for the region as a whole during the same period)
  • At over 50,000 permits, Riverside and San Bernardino counties accounted for 58% of the total residential permits in the SCAG region in 2005 (with nearly 35,000 of those in Riverside County alone)
  • Riverside County's home ownership tops the SCAG region at over 70%, which is above both the national (67%) and SCAG averages (56%) as well as topping neighboring Orange (62%) and Los Angeles (49%) counties
  • Taxable sales increased 7% in 2005 across the SCAG region with Imperial County leading the way with 17.5% followed by the counties of San Bernardino (13.7%) and Riverside (11.6%)
  • Air quality continues its long-term improvement, with days exceeding the federal ozone levels across the SCAG region dropping slightly from 88 to 84 days while continuing to meet the federal standard for carbon monoxide levels
  • Violent crime rates dropped 11% across the SCAG region (with Ventura, Orange and Riverside counties ranking 1, 2 and 4 respectively when ranked separately against the nine largest metropolitan regions***)
  • The region's median age of 33.5 is second-lowest among the nine largest metropolitan regions (Dallas is lowest with 33.2)

Some lowlights:


  • Home affordability rates across the region continue to drop -- less than 15% in Los Angeles, Orange and Ventura counties while only a slightly better 18% Inland

  • Traffic congestion continues to choke many parts of the region, with LA/OC ranking as worst in the nation while the Inland region comes in at 7th most-congested

  • San Bernardino County saw school dropout rates rise sharply from 12% in 2000 to nearly 20% in 2005

  • SCAG region ranks last among the nation's nine largest metropolitan regions with residents holding a Bachelor's degree

  • SCAG region ranks last among the nation's 17 largest metropolitan regions in per capita income averages

Related

Previous

** Imperial, Los Angeles, Orange, Riverside, San Bernardino and Ventura counties
*** Boston, Chicago, Dallas, Detroit, Los Angeles, New York, Philadelphia, San Francisco, Washington D.C.


Inland Roundup - 09/26/2006

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A roundup of local items making the news...

With the announcement of a location at the Galleria at Tyler in Riverside, The Cheesecake Factory joins a growing list of upscale chains flocking to Inland Southern California:

"We probably received about 2,000 offers, and we will open 20 stores this year," said Cheesecake Factory spokesman Howard Gordon. "So, for us to open in a certain area, we have to know we want to be there. Riverside fits our criteria."

The Press-Enterprise


2006
Nordstrom - Galleria at Tyler

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2002
Cajon Street - downtown Redlands

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2006
M Sole - downtown Riverside

The Riverside location will be the chain's third Inland restaurant following Rancho Cucamonga and Rancho Mirage. The addition of TCF, which is part of the Galleria's current expansion plans (P.F. Chang's, Yard House, Elephant Bar, Robbins Bros. and AMC Theaters), comes on the heels of other Inland retail hot spots -- including Corona's soon-to-open Promenade Shops at Dos Lagos and Rancho Cucamonga's Victoria Gardens -- in landing highly-sought tenants.

Elsewhere, plans for a mixed-use development in downtown Redlands solidified recently as Krikorian Theaters released updated details of its expansion plans, which includes lofts, apartments and condos above new retail. Without a doubt, downtown Redlands has been ripe for such mixed-use options. Fortunately, it appears Krikorian understands the need to integrate the expansion within the existing historical character of downtown Redlands:

"One of our chief concerns is creating something that fits in the historical context of Redlands, and has a good urban 'feel' with the individual commercial and residential elements tied together in a way that is easily and pleasantly walkable," Krikorian writes.

The Press-Enterprise

The Redlands project joins similar mixed-use developments planned or proposed for other areas of Inland Southern Califorina, in particular, the downtowns of both Ontario and Riverside.

In Ontario, ground was broken recently for the ambitious Ontario Town Square, which includes residential and retail uses within the city's civic center -- an area of mostly empty lots, many of which were razed years ago during urban renewal, but never fully redeveloped. Meanwhile, Riverside also has multiple mixed-use projects planned for downtown along the Market Street corridor, of which approval was recently given for the first phase of M Sole.

Finally, the I-215 corridor around March Air Reserve Base southeast of Riverside, which includes DHL's west coast distribution hub, continues gaining momentum as commercial activity pushes further east. Recently opened were portions of the master-planned Meridian business park while the nation's largest speculative industrial building is currently under construction in Perris. Also, the joint powers commission overseeing redevelopment of the civilian portions of March ARB agreed this past week to explore limited passenger service at the joint military-civilian airfield -- a proposition outlined in SCAG's Regional Transportation Plan (2004).

Related


Out & About - 09/24/2006

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Sunday, September 24, 2006 - A few photos and thoughts while browsing various new home developments in both Riverside and Corona.

The trip begins with the Alta Cresta development in southeastern Riverside. In most respects, Alta Cresta is the second major phase of the city's master-planned Orangecrest development, both of which actually began as a county projects prior to annexation into Riverside. New neighborhoods taking shape include those at Mission Ranch: Windsong, Hawksbury, Ardenwood and Turnbridge. Each tract offers large homes (2,600 - 4,304 sq. ft.) with many on large lots (10,000 sq. ft.). However, most also come with hefty price tags ($555,000 - $769,000).

Next up are new home developments in the La Sierra area of southwestern Riverside, namely those along the reconfigured Dufferin Avenue (now McAllister Parkway). Homes in the Bridgeport and Stone Harbor communities are also quite large, (3,200 - 5,100 sq. ft.) and likewise tend to also be on larger lots. The optional casita is a novel idea found at a Stone Harbor model. Prices range from $728,000 - $923,000. Similar homes are on the horizon at the Sierra Estates tract.

Finally, we end with two developments in southern Corona: Dos Lagos and The Retreat. Both are master-planned communities and both include championship golf courses (and championship golf course prices - upwards of $1,000,000 at The Retreat). In particular, we again found the optional "walk-up casita" at one of The Retreat models a nice touch and the elevation styles at Dos Lagos uniquely different.

Not to be overlooked, Dos Lagos also includes an outdoor lifestyle center -- The Promenade Shops at Dos Lagos -- which is set to open October 6th. It will be Corona's first large-scale, mall-like development. Tenants include Coach, Talbots, Coldwater Creek, White House | Black Market, Banana Republic, Z Gallerie and Wood Ranch BBQ among others.

Related


Superfluous suburban names

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A recent posting at DenverInfill Blog regarding the various marketing ploys behind the naming of new residential subdivisions caught our eye, if only because the phenomenon described, er panned, indeed is quite evident here within Inland Southern California.

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2004
Yucaipa

In today's "image is everything" marketing world, the need for new housing developments to have catchy names and/or slogans -- particularly ones that conjure paradise -- is nothing if not a requisite. And nowhere is this probably more necessary or evident than in California itself, wherein the need to be glamourous, hip, exclusive, etc., -- even if in perception only -- is indeed paramount. (Thanks, Hollywood.)

In the recent past, a simple nature-based name -- Eagle Glen -- worked fine. However, these days that same housing tract now needs to conjure up exclusivity as well -- The Retreat at Eagle Glen. (DenverInfill even includes a handy-dandy chart with hundreds of possibilities for those wishing to conjure up their own dreamy subdivision paradise.)

Fortunately, this recent trend of "exclusivity" will likely collapse upon itself as eventually every subdivision will become so exclusive in name that the actual exclusivity will lose any real meaning. (Though, we suppose the next logical evolution in naming convention could simply build upon existing style, thereby giving us super-exclusive tract names such as "The Lavender Hills Private Collection within The Retreat at Eagle Glen." We shudder to think.)

Which brings us around to a related item previously posted here back in March 2005 - Living outside city limits.

It seems the City of Corona was getting service inquiries from residents of a new master-planned housing development branded as "The Corona Valley." Except these residents did not actually live within Corona proper, but in fact in a nearby unincorporated area of Riverside County. Yet, thanks to the clever marketing technique employed by the developer in using the better recognized -- and somewhat more desireable -- "Corona" moniker, many residents of the new tract simply assumed they lived in Corona.

Such is the life in what DenverInfill terms as today's "fabulously fake" subdivisions.

Related


Upscaling San Bernardino

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Million-dollar tract homes in San Bernardino? It just may happen.

As with much of Southern California (and the nation), San Bernardino is a mixture of moderately upscale, middle class, lower-middle class and flat out rundown neighborhoods. Unfortunately, San Bernardino has quite a bit more of the latter rather than the former. But there are areas that buck the trend, including the Tri-City Corporate Center and the area near Cal State San Bernardino.

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2004
Tri-City Corporate Center

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2001
Cal State San Bernardino

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2001
Cal State San Bernardino

Two projects by Watson & Associates of Seal Beach, California, will bring long-awaited, truly upscale developments to the city. Conceived by Jim Watson, president of Watson & Associates, both "University Park" and "West Ridge" master-planned projects will likely redefine future development within the city -- and more importantly, potentially redefine the perception of the city as a whole.

The projects, near Cal State San Bernardino, are just two of several planned for the city by Watson:

Watson is planning more than $300 million in San Bernardino residential projects at a time when city leaders are pushing economic revitalization...

University Park, carved into four subdivisions, also will showcase Watson's favorite causes, which he's already begun funding in San Bernardino: art, education and the environment.

His development to-do list also includes live-work spaces and new houses that could be the city's first to sell for $1 million, plus hundreds of homes Watson said he wants to build downtown.

The Press-Enterprise

Since setting up shop in San Bernardino four years ago, Watson has made it a point to become part of the community, donating both time and money to local causes. In particular, Watson has jump-started educational and art outreach programs and has become a big supporter of Cal State San Bernardino.

In a city struggling to reverse a steady, downward slide, a person -- and company -- the likes of Watson could just be what the doctor ordered.

Related


Downtown condos hit snag

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2004
Project site

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2004
Riverside Art Museum

The latest proposal for the La Valencianna mixed-use project in downtown Riverside has run into another snag. The city has given developers 90 days to address the latest concerns, which include questions about the amount of on-site parking for commercial tenants as well as the projected per-unit prices.

Located at the corner of Mission Inn Avenue and Lime Street, the latest incarnation envisions 2 levels of underground parking (175 spaces), street level commercial/offices topped by 5 floors of residential (consisting of approximately 90 condos). If built, it would be Riverside's first significant mixed-use project in decades.

The proposed development is a partnership of local developers and investors, including longtime builder Henry Coil Jr., architect Bill Warkentin, landscape architect Tim Maloney and entrepreneur Don Dye, formerly the dean of UC Riverside's A. Gary Anderson Graduate School of Management.

Considering the recent rash of mixed-use developments built, planned and/or proposed elsewhere in Southern California -- namely, the downtowns of San Diego, Long Beach, Los Angeles and Pasadena, not too mention the Wilshire corridor -- downtown Riverside is a natural "Inland" location for such projects.

Our hope is that a workable/acceptable proposal comes to fruition soon before costs eventually diminish -- or kill -- the project.

Related


Home sales, prices climb

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Despite overall home sales being down in December 2005 from a year earlier in Southern California (30k vs. 28k or minus 4.5%), numbers provided by DataQuick Information Systems show Riverside and San Bernardino counties continue to buck local trends with sales increases of 16.5% (6,305) and 5.7% (4,580) respectively.

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2005
Sycamore Creek development
Temescal Valley

Along with the sales increase has been a steady rise in median prices as well, now pegged at $411k (Riverside) and $361k (San Bernardino). Overall, Southern California's median home price stands at $479k, up from $424k in December 2004 (a 13% increase).

Karen Nelson, a real estate agent in Temecula and chairwoman of the board of the Southwest Riverside County Association of Realtors, said she has not seen a decrease in San Diegans moving to the Temecula area who want to buy larger houses.

"Folks that have grown up in San Diego can't get the kind of house they want down there, so they're coming up here," she said.

The Press-Enterprise

With that said, a report by Demographia lists the Riverside-San Bernardino-Ontario housing market as the 9th least affordable major urban market among 6 nations surveyed (Australia, Canada, Ireland, New Zealand, United Kingdom and the United States). Of course, this high-ranking owes itself partly to buyer spillover from neighboring Los Angeles-Orange and San Diego markets, which, according to the report, were ranked #1 and #2 respectively.

It's hard to say exactly where the local housing market stands in worldwide terms (the variables simply seem too great). But without a doubt, affordable housing anywhere within Greater Los Angeles indeed is becoming difficult to find these days.

On a related note, Inland Southern California's apartment rental market led the West in year-to-year price increases, rising 7.3% to an average of $1,086.

Related


Although million-dollar homes within Inland Southern California are nothing new, the increasing number of them on the market is growing quite rapidly.

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2004
South Corona

In the past, most million-dollar homes were typically single-built, custom homes. Nowadays, it's not uncommon to see new tract-built homes selling for upwards of $750,000+. Naturally, as home prices toward the coast rise, the Inland areas closest to Orange and Los Angeles counties are seeing the largest increase in overall prices -- both with new as well as resales.

Over the past 15 years, the city of Corona has seen tremendous growth in its housing stock as former citrus groves within its southern section have given way to large swaths of housing tracts. As the first stop along the Riverside Freeway inbound from Orange County, the city has seen a dramatic rise in the number of million-dollar homes, many of which are sold in newly built tracts. In fact, the past few years has seen the area along I-15 just outside the city's southern limits (i.e., the "Temescal Valley") populated with higher-end, master-planned housing developments, some with new homes starting at $1 million dollars.

Like it or not, it appears the days of affordable new housing anywhere within Greater Los Angeles is drawing to a close.

Photo Gallery: Corona

Related


Growing young

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Thanks to tens of thousands of retirees, most of whom flocked to the area between the 1960s and 1980s, a small stretch of Florida Avenue in downtown Hemet once had one of the richest concentrations of bank deposits in America. And although the number of banks -- and retirees -- has since lessened, the city has recently become a hot spot of a different sort.

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2004
Bank of Hemet

As with much of Inland Southern California, homebuyers are quickly snapping up new homes sprouting up throughout the San Jacinto Valley. The influx is quickly transforming the area's demographics into a younger, more affluent population, one which has caught the attention of national retail and dining establishments.

In the past few years, Hemet has seen, or will soon see, the opening of Office Depot, Applebees, Chili's, Petco, PetSmart, LA Fitness as well as multiple Starbucks, outlets long absent within the San Jacinto Valley:

"You see increased varieties of places to shop, including some of the bigger retail stores," said Dan Puleo, who added the city still could use a bigger mall and a major electronics store such as Best Buy or Circuit City.

The Press-Enterprise

With the influx of new developments has come the inevitable increase in traffic. But it has also increased the city's sales tax coffers. City figures show that Hemet's sales tax revenue increased from $7.3 million in 2002 to $10 million today. That translates into extra money for the city's roads, parks and public safety programs.

Indeed, today's Hemet is not the Hemet of your grandfather (or grandmother).

Related


Reshaping downtown

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A handful of plans currently in the works will reshape downtown Riverside and, for the first time in a long time, include serious mixed-use development with an emphasis toward residential uses. The projects, which include a balanced mix of condos, townhomes, lofts, commercial and arts uses are expected to begin taking shape throughout 2006. Each will greatly add to the vibrancy of Riverside's historic core -- one of the few genuinely historic downtowns in Southern California.

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Reshaping downtown
The Press-Enterprise

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2005
The eclectic Mission Inn
anchors downtown's renaissance

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2005
Fifth & Main streets offers leisurely
shopping, dining and strolling

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2005
Downtown Riverside poised
to get more offices

Probably the most anticipated of the projects will be a renovated Fox Theater along with a mixed-use companion, Fox Plaza. The former will bring back to life a long-missing civic arts theater while the latter is the largest of the various projects planned, combining condos, lofts, a small 150-room hotel and other commercial uses. The project takes in both sides of a two-block portion of Market Street between Fifth Street and Mission Inn Avenue.

Also eagerly anticipated are two similar residential projects backed by former HUD secretary Henry Cisneros' CityView corporation, national builder Lennar and Century City-based developer Mark Rubin (builder of Riverside's Mission Grove). Both projects envision condos and townhomes along Market and Main streets between First and Third streets. Nearby, a SavOn is being built with what's being called a mini-Albertson's within.

With the recent residential transformation of downtown San Diego, and on a much lesser scale, downtowns in Los Angeles, Pasadena, Long Beach and Glendale, it's high time such mixed-use development again finds its way to downtown Riverside, a locale that easily rivals -- albeit on a smaller scale -- most of the aforementioned downtowns.

Without a doubt, it's only a matter of time before such projects do in fact begin to take shape in downtown Riverside, though admittedly, it seems to be taking much longer than it should. Quite frankly, it suggests the lack of serious, in-depth knowledge of Inland Southern California's environs by many LA-based real estate media, financial and development gurus. There are notable exceptions, but in general, this seems to be the rule.

To be fair, however, it also highlights the lack of maturity of the local market with regards to mixed-use development. But, as home builders have known for years and commercial builders have recently rediscovered, Inland Southern California offers Greater Los Angeles' largest untapped market for future, mixed-use developments. Nowhere else will this be more evident than in western Riverside County, wherein the County's long-range general plan (RCIP) eyes "transit villages" as the core for future development.

Indeed, most planners agree that some form of transit oriented development is the only real solution at helping alleviate America's overburdened freeways choking our suburban expanses. And unlike much of Southern California, Riverside County is at least attempting to plan for the likelihood of such TOD developments -- before it's too late.

Related


A few weeks back, two articles in the local newspaper caught our eye, if only because they were a few days apart and both were about emerging trends within Inland Southern California's housing market. And yet, they could not have been more diametrically opposed.

The first article shows the emerging trend -- even here, in the suburbs of all suburbs -- of condo and townhome projects (something sorely lacking in much of Southern California, particularly within the Inland region). The article highlights a number of such projects proposed for Inland Southern California.

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Proposed downtown Riverside project
MetroPacific Properties LLC

More importantly, however, is that it also highlights the fact SoCal homebuilders have finally realized there's "another" segment of the local home-buying market: young professionals and empty-nesters. Many buyers from this segment aren't interested in the latest, greatest McMansion tract home located within the latest and greatest far-flung suburb. In fact, most are looking for much smaller living spaces with little or no yards and/or a more urban landscape.

Though a few such condo projects have been proposed in the past couple of years in downtown Riverside, none have yet to materialize. Fortunately, after a few false starts, it appears one such project may in fact finally come to fruition as two former rivals recently announced their intentions to join together in building the winning bid. Hopefully, this one will actually make it beyond the planning stage.

The second article, however, couldn't have been more different. It basically reaffirmed that the suburban tract home is still king in Southern California. Only nowadays the average tract home has grown considerably larger -- nearing 3,000 sq. ft. There are various reasons for the seemingly large increase in new home sizes, but the fact of the matter remains, how much larger can they grow? Likewise, how much farther out on the horizon can they go?

Bottom line, the two articles point to the emerging diversity of the new home market within Inland Southern California. Although homes themselves are indeed growing larger, it's gratifying to see that homebuilders are also finally recognizing there's a market for more than just the traditional single-family tract home.


Life outside city limits

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So, you've recently moved into your brand new suburban tract home in what the developer has cheerfully marketed as "The Corona Valley." It's a 5-bedroom mini-mansion complete with 4 large bathrooms, a second-floor "landing," built-in multimedia/entertainment centers, Sub-Zero appliances, walk-in closets galore and a large backyard with lush landscaping to boot.

The schools are new, the streets newly-paved, your neighbors seem great, a "proposed park site" is beginning to take shape across the street and a Home Depot and Best Buy are nearing completion at a newly built shopping center nearby:

The Corona Valley was designed for you to enjoy the relaxation that comes from country living, yet place you conveniently close to job centers, schools, recreation and vibrant shopping. In fact, the new Clara Barton Elementary School and McCune Family Neighborhood Park are just steps from your door.

Trimark Pacific Homes

But now, you find yourself needing to inquire about certain city services. So naturally, you pull out the local "Corona-Norco" phone book and proceed to call Corona City Hall. Only there's a problem -- you don't actually live within the city of Corona. In fact, you're well over 5 miles from the Corona city limit.

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Trimark Pacific Homes

Welcome to Inland Southern California's burgeoning, unincorporated communities.

For a recent arrival to The Corona Valley -- or any of its siblings -- the first notion that they live not within an actual city itself, but in an unincorporated area of the county may come as a bit of a surprise, particularly when the developer's marketing techniques tend to indicate otherwise (or at least downplay this aspect).

On the surface, many of these newly built master-planned "unicorporated" communities springing up all across Inland Southern California do not appear much different than their counterparts within nearby cities. But underneath, the funding and governing mechanisms can be quite different, if not quite up to the service standards found -- or expected -- within most incorporated cities:

With state laws limiting their ability to impose new taxes and assessments, Inland counties are struggling to provide the city-style services coastal transplants expect.

The Press-Enterprise

In the post-Prop 13 era of California, rooftops rarely foot the bills for the services required and/or provided. Thus, many cities are much more reluctent these days to annex freshly-built housing tracts, especially those without any significant business and/or commercial tax base potential. And yet, such developments on the fringe of a city's borders can greatly impact its parks and libraries as many new arrivals often look to nearby cities for these services and amenities.

Likewise, the same property tax limits of Prop 13 that keeps many cities from gobbling up rooftops, also hinders many newly-developing areas from incorporating into cities as well. In the majority of cases, there simply is not a large enough -- or diverse enough -- tax base to support city-style government for these primarily residential developments. Thus, the duties of servicing these unincorporated communites are left to county government, which often finds itself spreading tax dollars over an increasingly wider area, thereby compromising overall service levels. As such, nearby cities often shoulder many of the impacts (traffic, parks and libraries).

Without a doubt, some good has in fact come from Prop 13 (such as controlling a then-runaway state budget). However, it's no surprise many leading economists agree that a structural reform of the nation's most recognized -- and most sacred -- initiative is indeed due, else the "fiscalization of land" will remain unabated as cities continue to favor annexing commercial interests over residential.

Related


Housing remains hot

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The pace has slowed somewhat, but Inland Southern California's housing market continues to sizzle.

With year-over-year sales gains of 4.6% and 6.2%, and median price increases of 28.5% (to $334,000) and 26.1% (to $261,000) respectively, Riverside and San Bernardino counties led the pack in Greater Los Angeles.


Landmark plan approved

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Riverside County's landmark Multi-Species Habitat Conservation Plan finally received federal and state approval this week. The plan, one part of the comprehensive Riverside County Integrated Project -- a.k.a., "The Blueprint for Tomorrow" -- sets in motion the county's ability to better plan and manage expected growth while preserving much needed species habitat and open space:

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'Protecting species'
The Press-Enterprise

The (species) plan calls for creating a 500,000-acre reserve system that would protect 146 species, from majestic bald eagles to delicate butterflies and tiny kangaroo rats. The county already has purchased about 370,000 acres and will need to buy the remaining land from willing sellers, leaving about 130,000 acres yet to be acquired.

The plan's total cost over 75 years is estimated at $2 billion and relies heavily on future state and federal funding. The county will pay about $1 billion, more than half of which will come developer fees...

...The county's growth plan has been heralded as one of the nation's most ambitious because it looks at not only species protection, but also (where) new homes and roads should be built.

"The (wildlife) component is one part of the most ambitious planning processes being undertaken in Southern California," said Jane Hendron, a spokeswoman for the U.S. Fish and Wildlife Service.

The Press-Enterprise

Initiated in 1999, the RCIP involves 3 major areas of planning, each area separate yet "integrated" into one overall plan:

  • Habitat Conservation
  • Transportation
  • Housing

Instead of the typical planning process of "independent planning and independent mitigating," the RCIP process will maximize the ability to dependently plan and dependently mitigate, thereby streamlining -- and balancing -- the overall planning process, and thus, better protect -- and better preserve -- habitat and open space while still providing for future transportation, housing and economic growth.

In short, the RCIP will help better protect our overall quality of life in the years to come.


Housing fizzle or bust?

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Thanks primarily to historically low interest rates, most metropolitan areas around the nation have experienced a surge in home building and a boom in price appreciation. One of the hottest of those areas is the almost always warm Southern California market, where today's median price lies at just under $400,000 -- approximately a 25% increase in just one year. (Nationwide, the median price is hovering near $180,000.)

But, with interest rates expected to continue climbing, most agree the torrid pace of appreciation cannot continue. Factor in the other market variables, and one can only wonder if the bubble is about to burst -- as it did in the early 1990s. That scenario is making more than just a few in these parts a bit uneasy:

...many economists and analysts acknowledge striking similarities between the top of the last market cycle and today: soaring price appreciation and sales volume; eager investors with get-rich-quick stories; growing use of adjustable-rate mortgages; and divided opinion about how long the good times will last and whether the end will be a bust or a fizzle.

...A key unknown is how fast and far mortgage rates will rise. The Meyers Group, a real-estate consultant based in Costa Mesa, expects a gradual rise of mortgage rates by 1 percentage point over the next 15 months, said Michelle Wolkoys, managing director. At that rate, home values would continue to rise 10 percent a year, Wolkoys predicted.

(Edward Leamer, director of the UCLA Anderson Forecast) said he would not be surprised if home values gradually "float down" as much as 10 percent over the next couple of years. But barring an unexpected job loss, he said he does not expect a downturn as severe as in the '90s.

(John Karevoll, an analyst with DataQuick Information Systems, a firm that tracks housing trends) said he is confident that mortgage rates won't rise enough by the end of this year to do more than rein in the percentage of annual housing appreciation from the high 20s "to the mid or low teens."

The Press-Enterprise

Fortunately, most remain optimistic -- albeit, cautiously optimistic. Hopefully, the rise in interest rates will in fact rein in soaring home prices as opposed to crashing the overall housing market -- else many who purchased homes in the last few years may find themselves a bit upside down on their mortgages.


Downtown SD part deux

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An excellent article regarding the recent residential building boom taking shape in downtown San Diego (a not too distant topic here on this very blog) appeared recently on the San Francisco Weekly Website.

Writer Matt Smith surmises that San Diego and San Diegans themselves are finally beginning to realize both the need and desirability of some forms of dense developments -- specifically, mixed-use residential towers. Moreover, he sees the recent wave of downtown development potentially acting as a savior for suburban Southern California:

"A mini-Manhattan sprouting at the edge of San Diego Bay offers hope as medicine for what ails California."

Without a doubt, San Diego area builders, buyers and bureacrats alike have all come to better accept such development, which again, is atypical within suburban-minded Southern California. Our hope is that such mixed-use developments will help bring balance back into overly suburban developmental patterns afflicting Southern California.

sd-2003-dt-006-a500.jpg
2003
New residential high-rises
downtown San Diego

Much of downtown San Diego's recent high-rise residential boom came via a developer (Nat Bosa) who did much the same over the past 20 years in Vancouver, B.C., Canada:

Vancouver officials beckoned developers to fallow industrial yards near downtown ... Nat Bosa, an Italian immigrant who entered the building trade 30 years ago as a laborer, was among those who foresaw that Canadians would pay good money to live in such a place. "My prediction in 1990 was, in 10 years, it will be fashionable to live in downtown Vancouver, and in 15, it will be a great place to live," he says. "People now love it."

As prime, cheap land began to disappear from central Vancouver, Bosa and other Canadian developers looked south to San Diego and saw another abandoned, decrepit downtown ... "I felt it was just a fabulous place, with a great climate. I thought it was ready for what I call urbanization," Bosa says. "It was lacking on one big thing -- more people."

Sounds as though downtown Riverside could use a bit of Mr. Bosa's enthusiasm and ideas...

Related


Downtown San Diego

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pe-20040328-sd-dt-600.jpg
'Revitalizing downtown San Diego'
The Press-Enterprise

sd-2003-conv-center-001a-400.jpg
2003
Convention Center

sd-2003-dt-006-a500.jpg
2003
New residential high-rises

sd-2003-dt-hortonplaza-006-500.jpg
2003
Horton Plaza

Just 90 miles to the south of Riverside is San Diego. Like much of Southern California, San Diego has found itself battling suburban sprawl for much of the past few decades. However, unlike its big brother to the north (Los Angeles), San Diego still remains an actual town with a highly recognizable central core -- a core which has become even stronger and more viable in the last decade. And, with the recent opening of Petco Park, downtown San Diego has officially turned the corner for good.

But, it took more than the $500M investment of Petco Park. Downtown's recent transformation actually gained its first tangible foothold in the mid-1980s with Horton Plaza. After a few slow years, steam began picking up and by the 1990s, the historic Gaslamp District began to come alive with eateries, pubs and night spots.

Next, there was a new convention center, marina redevelopment and first-class hotels, which paved the way for a return to high-rise residential developments -- many of which have been built just in the last 3-5 years. Today, there are 25,000 residents living in downtown -- a significant number in suburban-oriented Southern California.

And now, there's Petco Park. Although to many, Petco Park is simply icing on the cake (and in some respects, it is), in reality the new ballpark for the San Diego Padres means so much more.

For starters, it keeps MLB in town. With the on-going threat of the NFL's Chargers leaving (and having already lost the NBA's Clippers in the 1980s), San Diego needed to retain at least one major-league franchise. Some may disagree, but being a "major-league" city is still important these days.

Likewise, this immensely large investment in downtown San Diego has once again proven to skeptics that downtown is indeed a place worth -- and necessary -- in retaining, redeveloping and reinvesting in (again, a seemingly simple concept lost on many suburban-minded Southern Californians).

With so much recent downtown development -- particularly on the residential front -- San Diego has separated itself from the rest of Southern California and moved closer to being a balanced city the likes of Portland and Seattle. In fact, although there is neither a Microsoft nor a Space Needle, some would say San Diego is more and more becoming 'Seattle South.'

Well, maybe.

Regardless, there's no denying that after decades of battling smaller suburban cores popping up outside of downtown (La Jolla, Mission Valley, Rancho Bernardo), the city's central core is stronger than ever and still remains the region's primary focus. This is one very distinct -- and important -- difference between Metro San Diego and Greater Los Angeles.

Again, how was it done? Reinventing, redeveloping and reinvesting in the central core. But above all, it took realizing the need to retain the central core.

So, if there's one city in Southern California in which the others could learn from, downtown San Diego indeed is it. (Are you listening Riverside? Anaheim? Los Angeles??)


High-end homes

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With housing demand -- and prices -- shooting through the roof, it's no surprise that a recent wave of high-end housing is taking root within the arroyos and valleys of Inland Southern California.

The 580-acre Vellano project in Chino Hills will offer semi-custom homes priced between $900,000 and $1.5 million as well as 50 lots for custom homes starting at $600,000. The development will overlook a planned Greg Norman Signature Golf Course.

"The vision is to create the finest country-club community between Los Angeles and Palm Springs," said Louis Fernandez, director of development for the project.

The Vellano project comes on the heels of similar large-scale luxury home projects in Corona and Rancho Cucamonga as well as smaller, custom-home developments in Temecula, Riverside and Redlands.


Hot housing

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A National Association of Realtors report released on Thursday says the Riverside-San Bernardino-Ontario metropolitan region registered the strongest rate of appreciation -- 28.9% -- in median home prices during the fourth quarter last year, making it one of the strongest housing markets in the nation:

The strongest price increase was in the Riverside-San Bernardino area of California where the fourth quarter price of $239,400 rose 28.9 percent from a year earlier. Next came Sarasota, Fla., at $222,100, up 26.1 percent from the fourth quarter of 2002.

NAR President Walt McDonald, broker-owner of Walt McDonald Real Estate in Riverside, Calif., said tight inventories are responsible for the strong price gains.

"There continues to be a shortage of homes available for sale in most of the country, resulting in a supply-demand imbalance," he said.

San Bernardino Sun


Hometime

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According to figures just released, over 8,500 homes were sold during November in the two-county region of Inland Southern California, accounting for 30% of the total homes sold in the six-county, Southern California region.

Overall, more than 27,000 homes were sold in November across Southern California (Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Ventura counties), with an median price of $336,000, up from $288,000 last November. Los Angeles County led the way with over 9,300 total sales.


Boomburbs and Megaburbs

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So, what happens to a "boomburb" or "edge city" as it ages? What becomes of a suburb when it matures? The first- and second-generation of booming suburbs -- boomburbs -- all across the U.S. are beginning to find out.

In the suburbs dotting Dallas-Ft. Worth, places such as Plano, Texas are wrestling with the very notion of what happens as a boomburb creeps into middle age, and begins facing challenges that once were known only to aging inner cities -- rising crime, aging infrastructure and changing demographics.

Of course, Southern California is a metropolis of such places. In fact, the region has become what is known as the "megaburb" -- multiple large suburban cities on the periphery of an existing major city. Long Beach, Pasadena, Glendale, Burbank, Riverside, Anaheim, Irvine, Rancho Cucamonga -- all these Southern California cities are boomburbs in one aspect or another, together creating a Los Angeles megaburb. And, as elsewhere across the nation, each are facing the same challenges as newer growth and investment expand beyond even their own borders.

Fortunately, the changing American attitude toward preserving, maintaining and reinvigorating many of America's downtown districts is helping to stem the outward flow to what can only be referred to as the "suburbs of the suburbs." This change against constant sprawl -- though, still not much more than a concept to many -- is beginning to take affect. Enough numbers of the buying public are finally beginning to grow the "infill" and "mixed-use" markets, making developments that were unheard of even a few years ago, now a reality.

Sadly, this change in mindset has not been quite as dramatic locally within Southern California as it has been elsewhere across the nation. In the land of endless cars and endless freeways, mixed-use developments are still difficult for many to fathom. But, this change is finally beginning to take shape here as well.

Slowly, but surely.


Regional office market strong

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The regional office market is among the strongest in the nation. Hopefully, this will spur a new round of Class A, mid-rise and high-rise office projects, which the area has not seen in substantial numbers since the late 1980s. There's no doubt the area is severely under-developed in this regards. But, that's one of the many drawbacks of an overly-suburban landscape.

Thankfully, there are a few "urban" bright spots in the downtowns of Riverside and San Bernardino, and to a lesser extent -- though no less in potential -- downtown Redlands. Likewise, residents are finally beginning to tire of the endless suburb and appear to be slowly accepting the notion of higher densities in some pockets -- though, there's still a long way to go toward changing the area's overall "single family residential only" mentality: For-sale signs sprout after apartment OKs; Lawsuit opposes 304-unit project).

In reality, however, there's only one sensible way to go -- up.


Interest rates nudging up

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Interest rates are beginning to nudge back up from historic lows. The average rate for a 30-year mortgage is back up to 6%, which is still very low historically speaking. And although the Southern California housing market has been blistering for the past 1 1/2 years -- thanks primarily to these low interest rates -- there's still not enough housing. This is particularly true up in the coastal regions, where only but a relatively few can reasonably afford to purchase. Which, is why once again -- as it has for many years in the past -- the Inland region (Riverside-San Bernardino-Ontario) led the state in the quantity of new housing.

This fact is just one more reason why Riverside County's "Integrated Project" (RCIP, aka the county's General Plan update) and TUMF (Transportation Uniform Mitigation Fee) ordinance are so important to help plan and manage the area's growth over the coming decades.


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