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How does an upscale, classy specialty center compete with a super-sized mall across the street that has everything a shopper might want? “Very well, indeed,” says Vice President-General Manager Fred Walters of San Jose Santana Row. “We’ve been able to create an amazing, intimate, yet urban environment that attract locals and visitors who want to escape from the ‘mall experience’. We have something for everyone, and that’s why we’re successful.”

Located across from Westfield’s 1.5 million sq. ft. Valley Fair Mall, Federal Realty’s Santana Row’s mixed-use project is thriving, surpassing its original projections as it carves out its niche in the middle of Silicon Valley. A combination of luxury, lifestyle and specialty tenants (within 555,000 sq. ft. of retail), plus a 213-room boutique hotel (Hotel Valencia), and 500 residential units (half for lease, half condos), Santana Row’s open-air design and classic architectural treatments provide shoppers with the classy, comfortable ‘old world’ feel where everything you need is just a few steps away.

“One of our main competitive advantages is that Santana Row offers 18, full-service restaurants of every ethnic cuisine...we have the restaurant edge,” Walters noted. “You can stay at our hotel, and within steps from your room, we offer five spas, each one specializing a unique service, such as The Tranquility Dental Spa!” What is that, we asked? “Well, you can get your teeth whitened and fixed, all within a spa-like environment.” According to Walters, the goal was to create an experience for the whole weekend and never leave Santana Row, like walking across the street to Valley Fair.

Federal Realty, an East Coast-based developer who is new to specialty centers and mixed-used projects, already has the go-ahead for an additional 160,000 sq. ft. for restaurants and retail at Santana Row. “We also have approval for 700 more residential units, which means that we’re just going to enhance our critical mass for built-in shoppers and customers,” Walters said.

Beyond the stellar sales per sq. ft. performance of the project ($500 retail, $800 restaurants, and $600 blended), “...the Hotel Valencia is sold out every weekend. It’s the upscale ‘hub’ for the heart of Silicon Valley.” High-end tenants such as Gucci, Burberry, and Tod’s attract locals and visitors, but such stalwarts as Crate & Barrel, Anthropology and Urban Outfitters serve both markets. Santana Row is looking to expand men’s clothing and accessories.

Santana Row is one of three “Row” projects for Federal Realty — the other two are located in the East — Pentagon Row (Virginia) and Bethesda Row (Maryland). Similar in design and feel, these new mixed-used projects combine the best of specialty retail, fine restaurants, and residential units. According to Bill Eddy, “...the Row developments are an exciting new trend, attracting younger demographics who want to the be in the ‘thick’ of it, and we’re getting a lot of interest from our clients who want to join them!”

For Walters, a 38-year-old California native who graduated from University Nevada—Las Vegas, Santana Row is a “...great challenge. I spent 11 years in Las Vegas managing retail in a hotly competitive environments such as the "Grand Canal Shoppes at the Venetian." I ‘grew up’ in mixed-use, 24-hours-a-day retail, so coming to this project is like a dream come true.” Walters also mentioned that there’s one huge benefit that Santana Row offers -- “....I don’t miss the 115 degrees in the summer in Vegas. Not one bit!”

Under Walter’s leadership for the past 18 months, Santana Row is making its mark in Silicon Valley. And the big gorilla across the street? “We’re more than holding our own,” he said. “We love to take on gorillas!”

The Eddy Company updates...
Ruby's Diner is looking for new restaurants in Hawaii, Southern California, Las Vegas and ramping up for locations in Chicago, Florida, Texas and portions of the East Coast. More to follow. Nakajima USA/Sanrio is looking at new store locations across the U.S. They want to open 125-150 new stores over the next three-to-five years. Hamburger Hamlet retained The Eddy Company to secure new locations in greater Los Angeles and Washington, D.C. FOR 2006-07. Lids/Hat World and Journey's are planning 10 stores in Hawaii the next two years.. Benetton is seeking to expand to locations in California, Las Vegas and Arizona. Rosasen is an exciting new Italian, "golf" inspired men's & women's concept store. Southern California where opportunities are being explored. Matchbox, an exciting new pizza bistro based in Washington, D.C. with a second unit in Palm Springs, CA is preparing to open additional units over the next three to five years on both coasts



The Eddy Company is one of America's leading specialty retail leasing consultancies. For information, contact Bill Eddy at our Newport Beach office - 949-640-7475. Please e-mail us: bill@theeddycompany.com or visit our web site -- www.theeddycompany.com.