Real estate
CLDC's largest Alaska real estate project is Tikahtnu Commons, a 950,000-square-foot, $100-million-plus project that is quickly becoming Alaska's premier retail and entertainment center. CLDC teamed with Oakland, Calif.-based retail developer Browman Development Co. to develop this project on 95 acres of CIRI land in northeast Anchorage. Tikahtnu Commons broke ground in 2007 and is anchored by major national retailers including Target, Kohl's, The Sports Authority, Best Buy and Lowe's. Regal Cinemas expects to open a 16-theater complex including Alaska's first IMAX theater in the center in June 2010.
Retail sales have generally been strong at Tikahtnu Commons despite the weak national economy. Additional tenants may start construction in 2010 and project buildout is expected to last another four years. CLDC is developing several other Alaska projects. It expects to start construction of a pre-leased, 40,000-square-foot office building in south Anchorage that is the first phase of a 22-acre mixed-use office and retail project that could include up to 100,000 square feet of office space plus additional retail and service businesses. CLDC is exploring options to develop additional sites in south and midtown Anchorage and other Alaska communities. It is following LEED (Leadership in Energy and Environmental Design) criteria to design and build its south Anchorage building to reduce the building's long-term energy and operating costs.
Pacific Tower Properties Inc. (PTP) is CLDC's subsidiary that provides commercial real estate management and brokerage services. It manages more than 50 commercial and institutional projects statewide, including CIRI's corporate headquarters building.
PTP plans to make extensive energy efficiency upgrades to the CIRI building in 2010 that will comply with LEED renovation criteria to reduce long-term operating and maintenance costs.
The Company has several large real estate development projects outside of Alaska. In 2008, it began site development construction on its Sonterra parcel in San Antonio, Texas. CLDC is monitoring the economy and exploring options before starting construction on the remainder of the Sonterra project.
CLDC is also developing the infrastructure for three residential subdivisions in and around San Antonio. Lot sales to home building companies have been slower than in past years because of the economy. CLDC is evaluating its options for increasing sales and the Company's return on its investment.
The Company is evaluating or developing real estate projects in other states, including CIRI-owned sites in north San Diego and Sacramento, Calif., and on the island of Kauai in Hawaii.
