February 23, 2004
Idaho Business Review

2 more buildings due in Eagle River

Two more "Riverside" office buildings are slated soon for the growing Eagle River Development, south of Idaho 44 and east of Eagle Road.

Plans filed with Eagle city planners call for construction of two-story buildings of 13,750 square feet and 16,800 square feet near the original Riverside Office Building - an 18,000 square foot structure that opened at the end of 2003 on East Shore Drive.

"I think we are well on our way to having at least 1 million square feet of space" over the next three to five years, said Chuck Carlise, managing member of Eagle River LLC, a unit of Phoenix based Grossman Co. Properties.

For the 90-acre Eagle River site, there are "at least five other deals in various stages of completion - a couple of restaurants included, two other smaller office buildings, and a retail component of 15,000 square feet," he said.

Riverside Office II aims to develop the 13,750 square foot building on the south side of East Shore Drive about 1,400 feet east of Eagle Road.  The group consists of Boardman LLC (managing member: John Baker, Ketchum) and Eagle River LLC.  The site is just north of the first Riverside building.

A decision to build it "is based on the absorption rate from this past year," Baker said.  "Our prediction is that when that building comes online, there will be little or no available square footage in Eagle River.

Construction is expected to begin in early April and be finished by October.  Vertical Corp., a Boise general contractor that will share ownership in the building, probably will oversee construction he said.

Baker alluded to "interest in portions of the building and the entire building" from prospective tenants.  The nearly $2 million structure will feature Class-A office finishes, as does the adjacent Riverside building with "more of an open floor plan so spaces can be divisible."

Eagle River LLC plans the larger building on the south side of East Shore Drive facing Idaho 44, east of the Eagle River office building.  It will feature sandstone accents rather than the brick and cultured stone on Riverside and the building planned north of it, said Andy Erstad, principal of Erstad Thornton Architects, designer of both new buildings.  Baker said some staggering in the construction schedule is anticipated.

The larger building is about a month behind the smaller structure in review processes.  Eagle River LLC, which has a city-approved plat and development agreement, approves building designs before they are submitted for city approval.  The Eagle City Design Review Board endorsed the smaller building Feb. 12, with conditions, and is to consider the larger one March 11.

In the existing Riverside building, Eagle River Mortgage and Alliance Title and Escrow are completing tenant improvements.  Baker said 10,000 square feet of space remains available, but it probably will be leased when the building planned immediately north opens.

Hilton Garden Inn, the Bardenay Restaurant and Distillery, and a Wendy's restaurant opened recently in Eagle River.  The multi-tenant Eagle River building is fully occupied.  Tenants include the developing entity, Eagle River LLC; mixed used developer SunCor Idaho LLC, LandAmerica Transnation Title and Pacific Republic Mortgage.

A building for Westmark Credit Union is under construction, and a land sale to Home Federal Savings and Loan is pending, Carlise said.

Construction of the first building for St. Alphonsus Regional Medical Center may start this fall, he said.  Boise-based St. Al's plans to build a 70,000 square foot building first - half for an ambulatory care center and half for office space - then an office building of 10,000 square feet.  St. Al's would not confirm a construction schedule.