 |
 |
 |
|
|
|
|
|
|
Publications: |
Feature Articles |
Finding 'Diamonds in the Rough'March 29, 2004BY MICHAEL GOTTLIEBCREJ Managing Editor Excerpted from the California Real Estate Journal Long underserved by established developers and retailers, inner-city minority communities are beginning to prove their value to the mainstream. But some developers, such as Tony M. Salazar, president of McCormack Baron Salazar Inc., have seen the opportunities that lie in these communities for decades. Salazar, keynote speaker at the Urban Land Institute's Urban Marketplace, held March 17 at the Los Angeles Convention Center, told the crowd of 500 attendees that suburban developers have overlooked potentially lucrative inner-city opportunities for so long that many can't see them anymore. "They are diamonds in the rough," said Salazar, who has developed 91 projects worth $1.2 billion nationwide, including more than 10,000 residential units and 1 million square feet of retail. Southern California may represent the ultimate diamond mine, with its massive, growing minority communities throughout the region that lack basic retail services and suitable housing. ... City of Huntington Park Vice Mayor John Noguez said during the panel discussion that it is important for urban cities to work with developers to incorporate the history of their communities into new projects. "The Hispanic community is starving for something other than the box," Noguez said. That can conflict with city codes, however. Noguez said local zoning restrictions might prohibit vibrant, multi-hued buildings. And code enforcement officials may site small retailers who put their merchandise out on the curb. "In the Hispanic community, that is inviting," he said. ... Experts said they have found success in urban retailing by combining a range of tenants, including national credit retailers, regional players and small mom-and-pop merchants. Panelist David Hidalgo, principal of David Hidalgo Architects, said a certain percentage of inner-city projects need to be set aside for local businesses, at the risk of keeping national tenants out of that space. "You have to be willing to take a chance with new opportunities. You have to be willing to take a risk," he said. Panelist Michael Fallas, president of National Stores Inc., which grew the Fallas Paredes retail concept from one store to 72, said small retailers are often underestimated. "If you live in the community and have passion about what you do, there is no limit to what you can do," he said. ... The complex social fabric of urban communities can be underestimated as well. Not only do Latino, Black and Asian communities differ in important ways, but each minority group contains differences as well. And all minority groups have the same problem: a lack of stores. Still, according to Hidalgo, the Salvadoran community may be different from the Mexican community, "but the base is the same." The key, according to Sneider, is to identify the aspects of culture that are unique. Otherwise, the majority has the same desires. "The overriding message," said moderator Michael Beyard, ULI's senior resident retail fellow, "is the issue of community - from conception all the way through to the finished product." | |
|
|