Phoenix-based Eisenberg Company has resumed work at its Eagle Island Marketplace. It began developing the area in 2011 and then stopped. Before it restarted, neighborhoods rose around the development.
“This is where the world kind of stopped during the recession,” said Jason Eisenberg, vice president of development and acquisitions at Eisenberg Co. “And now it has grown past us.”
That includes a nearby temple for the Church of Jesus Christ of Latter-day Saints that is almost completed.
The 40-acre, Fred Meyer-anchored center will be about 70 percent built out once the 8,500-square-foot and 5,160-square-foot buildings at the corner of Chinden Boulevard and Linder Road are finished. A Commercial Tire Center is also under construction on the center’s innermost pad.
Those buildings are expected to be delivered in August to Sports Clips, ATT, Orange Leaf Frozen Yogurt, and Mekong Noodles, Eisenberg said.
They are the ninth, 10th and 11th among 15 pads that Eisenberg has developed since starting with Fred Meyer in 2011. Eisenberg got its original approvals from the city of Eagle in December 2008, but the early days of the Great Recession had already taken hold.
Eisenberg has only built the three buildings now under construction and the Fred Meyer with the attached retail strip. Eisenberg sold pads to Idaho Central Credit Union, Taco Bell, Epic Car Wash and McDonald’s and they built their own buildings.
“We’re very happy with it,” Eisenberg said. “When you take out five years of economic turmoil, three years for a project this size is reasonable. Fred Meyer stuck with us in the recession.”
So far, Eisenberg Co. has invested about $50 million in Eagle Island Marketplace with the ultimate expenditure likely reaching $75 million at buildout, Eisenberg said.
Interest has increased recently at Eagle Island Marketplace, Eisenberg said.
“It’s all tenant-driven,” he said. “We don’t want to build vacant buildings. A year ago it was pretty stagnant. Six months ago it was good. Now activity has really taken off.”
Eisenberg has a 70,000-square-foot pad remaining for a mini-major retail space. But it can be split for tenants as small as 10,000 square feet.
“We have zero signed deals,” Eisenberg said. “We’re waiting for the market to come back (for mini-majors) in the next year or two.”
There are two other small pads available on Chinden and one on Linder at the property’s northwest corner. Eisenberg has developed about 250,000 of the available 350,000 square feet of leasable space.
Eisenberg Co. is keenly selective when building outside its home state of Arizona, where it has developed 37 shopping and office centers. New Mexico, Oregon and Texas each have one project, Idaho two, and Colorado five.
“We looked at markets that are not as cyclical as Arizona,” Eisenberg said. “If you look at Boise, it’s a long-term market. It doesn’t peak and valley like Phoenix. It has the bones of a good city. It reminds me of Denver 25 years ago. You see a lot of coast guys (looking at Idaho), a lot of inbound migration. We want markets that are growing, markets that are stable, markets with a good long-term outlook.”
Eisenberg Co. has also owned the 40-acre Sky Ranch Business Center property on U.S. 20/26 in Caldwell since 2008 but has built nothing there yet. Eisenberg expects development there will probably be similar to that at Eagle Island Marketplace.
“We are looking for a large user to jump-start the project,” he said.