Augusta University Gateway Project Update (Calhoun, Bethlehem: real estate, sublet, leases)

[Airforceguy]

We are finally getting some details on what the project will look like. It will be a 20-acre, 1.2 million sf mixed-use project featuring residential, office, and retail space. A hotel and grocery store will also be apart of the project.
UniversityGateway by brandon walker, on Flickr

The school’s nonprofit foundation – best known for funding scholarships and faculty salaries – suddenly turned into a commercial real estate developer.

Now, 20 years later, it’s ready to start acting like one.

Early next year, the MCG Foundation will move from its small offices near the old shopping center site into a 6,000-square-foot suite at the historic Sutherland Mill office condo complex, where the St. Sebastian Way overpass crosses the Augusta Canal.

At just over $1 million for the space, the suite is “a little more classy than what we need,” MCG Foundation President Ian Mercier acknowledged, but he said it was the most suitable space it could find near the medical district.

After the foundation moves into the offices during the first quarter of next year, its old 4,000-square-foot building – which some might remember as Mooney’s Shoe Store – will be razed like most of the rest of the foundation-owned property at the bustling gateway to the medical district.

In addition to being in the way of its future development plans, the old office just wasn’t suited for an organization with nearly $250 million in assets.

“It does say ‘frugal,’ ” Mercier said. “But it’s not very endearing within it comes to talking about philanthropy.”

The 55,000-square-foot Sutherland Mill historic cotton warehouse was renovated from top to bottom by local businessman Clay Boardman, who did the same thing – albeit on a much larger scale – to the next-door Enterprise Mill building nearly 20 years ago.

The foundation said that it doesn’t need all 6,000 square feet and that it will likely sublet some of the space to another tenant. The building also is occupied by Boardman’s Flywheel conglomerate of companies in addition to the Augusta ENT medical practice and Allgood Professional Services (which was recently renamed Argos Health).

The property in and around radio pioneer George Weiss’ former Central Square shopping center is being cleared for what the foundation is calling its “gateway” project, a 20-acre, mixed-use urban development with 1.2 million square feet of office, housing and general retail space along with a hotel and a grocery store to replace what was the Kroger-anchored retail center.

The 40,000-square-foot grocery store was bulldozed in the spring after the foundation decided not to renew the long-struggling store’s long-term lease. The only remaining vestiges of the retail strip are storefronts housing Nails Now, Hair Max Beauty Supply and Happy China. But those, too, will be razed once the leases expire.

The foundation wasted no time demolishing the fleabag motel (my words, not theirs) that sat at the corner of 15th and Wall streets after acquiring the nearly half-acre tract from Dr. Ravidener Jerath this year for the not-very-altruistic price of $1.3 million.

Include the 1½-acre bus maintenance yard that the foundation will pick up after the city completes its $18 million transit facility at the former dollar theater behind Regency Mall (the city broke ground on the project last month) and the foundation will have quite a nice expanse of property to show prospective development partners.

Mercier said the foundation already has a partner in mind for the nearly $132 million investment, and could announce who it is as early as next week.

Stay tuned.

Scuttlebiz: MCG Foundation moving out of the way of its own development | The Augusta Chronicle

[nortonguy]

Just think about the growth in one section of town. The MCG Foundation Gateway project and the Augusta Cyberworks. Over $300 million worth of private investment.

[Airforceguy]

Originally Posted by nortonguy

Just think about the growth in one section of town. The MCG Foundation Gateway project and the Augusta Cyberworks. Over $300 million worth of private investment.

I agree, this along with the Cherry Tree Crossing redevelopment, Foundry Place, new College of Science and Mathematics Building and the improvements to 15th St will give the Harrisburg-West End, Midtown and Laney Walker neighborhoods a different feel and vibe over the next 10 years.

[nortonguy]

Originally Posted by Airforceguy

I agree, this along with the Cherry Tree Crossing redevelopment, Foundry Place, new College of Science and Mathematics Building and the improvements to 15th St will give the Harrisburg-West End, Midtown and Laney Walker neighborhoods a different feel and vibe over the next 10 years.

Midtown is further up Central Avenue. Unless it was a typo. The science and math building will change the feel and vibe of the Medical District.

Foundry Place is actually in Bethlehem. Laney Walker is just the more prominent area. The former Cherry Tree is closer to Turpin Hill, but it will help Laney Walker.

All of Augusta Cyberworks and parts of the MCG Foundation Gateway project are in Harrisburg. I agree the next 10 years will be fun to watch.

[therealpattman]

Originally Posted by nortonguy

Midtown is further up Central Avenue. Unless it was a typo. The science and math building will change the feel and vibe of the Medical District.

Foundry Place is actually in Bethlehem. Laney Walker is just the more prominent area. The former Cherry Tree is closer to Turpin Hill, but it will help Laney Walker.

All of Augusta Cyberworks and parts of the MCG Foundation Gateway project are in Harrisburg. I agree the next 10 years will be fun to watch.

Which is why I don't understand why the idea to convert the Calhoun Expressway into a boulevard extension of Greene Street hasn't been floated? That plus the canal front and assets such as the Kroc Center and historic mills, the area could function as Augusta's true version of Midtown.

[Airforceguy]

Originally Posted by dpatt.marine1

Which is why I don't understand why the idea to convert the Calhoun Expressway into a boulevard extension of Greene Street hasn't been floated? That plus the canal front and assets such as the Kroc Center and historic mills, the area could function as Augusta's true version of Midtown.

The idea has been floated before, but I believe the major sticking point is the fact that GDOT wouldn't approve it; especially in light of the recent improvements that have been made to the expressway.

[Airforceguy]

The company chosen to develop the project is Daniel Communities.

MCG Foundation President and CEO Ian Mercier says the foundation has a master-plan for the roughly 20-acre property developed with help from Augusta University, the city and members of the community.

“This plan, it’s all talk and it’s a great idea, but you need to put something together, you need to assemble something that’s tangible and so that’s what Daniel [Communities] is here to do,” Mercier says.

The blueprints include things like office space, a hotel to service the Medical District specifically, retail, and the big one—a grocery store.

“Everyone talks about how there is no grocery store in the area, it’s a food desert…but one of the challenges with that is attracting the right store and to do that you need to have people…so a housing component, I think, would be a great part of this plan,” Mercier points out.

MCG Foundation hires firm to make future plans for 15th Street Kroger shopping center a reality | WJBF-TV

[Airforceguy]

Down on Fenwick Street in Harrisburg...you'll find people like Robert Archie. He's lived here for twenty years and doesn't want to leave anytime soon. "I like the people here. It's quiet. And you've got some good people here."

But if rent prices go up, he might have to.

"It could be one of us...you never know," said Archie.

Less than a mile from his house, the MCG Foundation is taking this property where Kroger was from run down and dingy...to a destination. They say they want it to mirror the growth at Augusta University - that's their first priority. But folks living nearby aren't so sure about it.

"You can't just go put a big place that people can't afford...Everybody ain't blessed to be able to afford things like that,” said Archie.

That's because MCG sees the property being upscale - with retail, housing, and office space. But neighbors say what the area really needs? A grocery store that all people can afford...sooner, rather than later.

Neighbors nervous 15th street new development could force them out

[amlovingit]

I knew something like that will be coming and I’m not surprise at all.

[nortonguy]

More construction headed to Harrisburg nearby.

7,000 SQ. FT. retail center at 1632 Walton Way.

Hibachi Express is coming to 1815 Walton Way.