la Frontera In the News

Austin Business Journal

Best Real Estate Deals of 2000

March 30 - April 5, 2001

La Frontera Village is counted as retail coup

Retail Finalist

by Emily Sopensky, Special to the Austin Business Journal

Carefully selected for its reputation and owner-developer style, the Developers Diversified Realty Corp., an Ohio-based REIT, pulled off a coup in developing the retail center at La Frontera Village.

Ground was broken in January 2000. Despite strict architectural guidelines required by 35/45 La Frontera L.P. and the City of Round Rock, the project reached 90 percent occupancy by the end of the year.

"I'm sure we made an all-time speed record," Don Martin, a partner with seller 35/45 La Frontera, says.

Located at the corner of I-34, FM 1325 and SH 45, which is currently under construction -- all within a stone's through of Dell Computer Corp. -- the intersection is well-known for long traffic-related delays.

"We were pleased to sell to Diversified because they have a reputation for being long-term owners -- not a build-then-sell outfit, says Martin. "Because we had strong standards, we wanted someone who was willing to work with us very closely."

With almost 810,000 square feet on 103 acres, the Village is considered the largest open-air retail center in the Austin area. Of its 46 stores and restaurants, the first of three Kohl's stores, the Wisconsin-based department store chain, is located in La Frontera Village.

Benefits to the City of Round Rock are numerous. In addition to jobs the development has manifested, La Frontera development contributes sales tax revenue to the city, which helps pay for road projects. In addition, part of the development agreement included paying for and construction the extension to a critical road to help relieve congestion at the intersection.

"The La Frontera development has bee, and will continue to be, a real winner for Round Rock," says Robert Stluka, the city's mayor.

Project completion included developers David Berndt and Kirk Pearson of Irving-based David Berndt Interests Inc.; brokers Dan Listrom of Austin-based First Regional Properties and Jim Mills of Georgetown's Rivercrest Group; Gary Johnson of Dallas-based Enviroplan, architect; and Doucet & Associates, Inc. engineers. the title company was Heritage Title Co. Inc., with David Wolff of Austin-based Drenner & Stuart and Rick Albers of Kuperman, Orr, Mour and Albers as lawyers of record. Develops Diversified's Stu Homquist and Rich Gundersen provided management of the project and Kelly Shaw of Trammell Crow Co is the leasing agent.