Developer Rick Caruso’s Americana at Brand in Glendale has enjoyed nearly two weeks of immense publicity surrounding its May 2 opening the long-awaited sequel to Caruso’s hugely successful Fairfax-area development The Grove. But success of the so-called “lifestyle center” could come down to two issues parking and the development’s residential element. Back in 2002, high prices for parking had shoppers steering clear of the Hollywood and Highland project until rates were reduced. At the Americana, shopping is free for the first hour, $3 for the second hour and increases by $2 for each subsequent hour up to a daily maximum of $9. Valet parking is available. Moviegoers can receive a validation for four hours from Pacific Theaters; while the Cheesecake Factory and Katsuya restaurants, Barnes & Noble and three other retail stores offer two-hour validations. Across the street, parking is free for Glendale Galleria patrons. “Ample, convenient parking is always important for our customers and our retailers and our employees,” said Janet Lefevre, senior marketing director for the Galleria. “We’re very much watching what’s going on with parking and trying to monitor the situation.” <!– Living easy at the Americana at Brand in Glendale. –> Living easy at the Americana at Brand in Glendale. With just one entry point to the 3,000-space parking structure that is dedicated to retail customers, getting in may be challenging, especially during peak times. Residents in the Americana complex will have a separate parking entrance to an underground garage of their own. “We know we’re going to have a problem with parking because we always do,” said the project’s developer Rick Caruso, “but it’s above the city code.” The opulent parking lobby, with its marble floors, crystal chandelier and self-playing grand piano may soothe shoppers. The second make-or-break issue is the project’s residential mix. These are tough times for those in the luxury living sector of the industry, with a large supply of both high-end apartments and condominiums recently opened or coming online soon between Pasadena, Downtown L.A. and Woodland Hills. While Caruso has exhibited he knows what he’s doing when it comes to retail the Commons in Calabasas; The Oaks in Thousand Oaks and the Grove in West Los Angeles are all very successful shopping centers by all accounts the residential component is new to him. “It’s been a very interesting learning experience for all of us,” said Caruso of dealing with this new component, “because what appears to be something that is simple and straightforward from a design standpoint becomes very complicated when you’re layering underground parking, then retail podium, and then residential.” The Americana has two categories of residences: 238 luxury apartments aptly named The Residences were 20 percent leased prior to the grand opening, while 100 condominiums are expected to open later in the year. When asked what his target market was for the residences, Caruso quipped, “Anybody with a buck.” Getting serious, he said that young professionals and empty nesters were their expected tenants, but that it was surprising that families with young children were also expressing an interest. It’s not known if these people are aware that skateboards and bicycles will be off-limits on the Americana’s “streets.” Rents for the apartments range from $2,000 to $5,500 per month, with one-bedroom, one-bath units starting at 675 square feet and the largest, townhome-style units as large as 1,928 square feet. According to Glendale native and Realtor Phyllis Harb of Dickson Podley Realtors, those prices are going to be a tough sell. A typical one-bedroom in Glendale rents for about $1,100. To come up with an apples-to-apples comparison, she suggested the Park Towers luxury high-rise condominium complex. Although these are privately owned, leases do come available from time to time. Most recently, Harb said, a 1,450-square-foot corner unit with two bedrooms and two baths was snapped up for $2,500 a month. Amenities are comparable with the Americana: a doorman and concierge service, swimming pool and barbecue area, private gym and spa, but the Towers also offers two tennis courts. Harb said she has had people express an interest in the Americana residences, but after finding out what the prices were, that interest vanished. She hasn’t yet visited the project. The only other truly comparable project local to Glendale, because it also has residential over retail, is Paseo Colorado in Pasadena. Prices there are comparable, with studios starting at $1,755 and the largest two-bedroom units renting for as much as $3,485 per month. The leasing manager for the complex did not return phone calls, but Jodi Taylor-Zens, director of marketing for the retail portion of the project, said the biggest challenge of the apartment-over-retail concept is noise. “I think you have to be the kind of person who understands you’re living in a downtown environment where trash trucks come early and stores get deliveries early in the morning and at night restaurants and bars are open late with music and people,” she said. The Paseo also has one thing the Americana doesn’t its own grocery store. “It certainly makes it easier,” said Taylor-Zens, but it shouldn’t be a deal-breaker, she added. The Americana does have a Rite-Aid where staples are available. Plus, residents can always run over to the three-story Target at the Galleria for some foodstuffs. With the tough residential market, only time will tell if Caruso’s bet was a good one. “You don’t build an airplane for calm weather alone,” Caruso said, apologizing for the corny analogy, “The economy will have its ups and downs, but we’re investing $400 million for the long-term.” The retail side is 98 percent leased, outperforming the pro form, he added. “The apartments don’t worry me at all and neither do the condos.”
