Rouse bullish on Las Vegas

James Rouse and Howard Hughes were men of vision, often referred to as pioneers in industry. Perhaps that is why The Rouse Co., owner of The Howard Hughes Corp., is among the largest real estate investment trusts in the United States.

Long before Hughes Corp. started development of the Summerlin master-planned community in Las Vegas, Rouse was building the city of Columbia, Md., a new type of master-planned community.

In 1963 Rouse set out to acquire 165 farms and smaller land parcels totaling 14,000 acres. By 1964, with the acquisitions completed and county approval obtained, Rouse moved ahead on Columbia. Today it has 96,000 residents and more than 3,500 businesses providing 91,000 jobs.

Rouse based his vision for Columbia on the belief that "the most successful community would be that which contributed the most by its physical form, its institutions and its operations to the growth of people."

In other words, it was created in terms of human value, not only in terms of economics and engineering, according to Larry Brocato, an executive with Hughes Corp.

"Columbia was designed as a place of diversity, welcoming to residents of all ages, races, religions and socioeconomic status," said Brocato, who started his career with Rouse 20 years ago. "Columbia's master plan called for a series of self-contained villages, around which day-to-day life revolves. Virtually every basic amenity, including schools, shopping centers, community and recreational facilities, and neighborhoods are within easy reach by automobile, bicycle or foot."

Brocato pointed out that Rouse's vision for Columbia mirrors Hughes' vision for Summerlin.

"That's just one reason the marriage between the two companies has been so harmonious, profitable and successful," he said.

"Like the community of Columbia, Summerlin was designed as a place where residents could live, work and play. While that premise is common in community development today, the notion of creating a self-contained community was new in the 1960s, when James Rouse ascribed to it. Rouse was essentially a pioneer of sustainable development in America nearly 40 years ago."

Brocato said it was once common belief that community development was antithetical to smart growth.

"But upon closer examination, even the critics are admitting that thoughtfully planned communities with typically higher densities than nonmaster-planned development and which integrate places to work, shop and play, actually underscore the very meaning of smart growth," he said.

Columbia and Summerlin, which is Rouse's largest community under development, dominate the company's community development portfolio, which includes five other projects. Last year, Rouse acquired a majority ownership of The Woodlands, a master-planned community near Houston. Rouse also recently acquired 9,000 acres west of Houston for a new community called Bridgelands, which is planned to include 19,000 residences. Other active projects are Emerson and Stonelake, both in Howard County, Md.; and Fairwood, located in Prince George's County, Md.

Rouse's portfolio also includes 150 properties encompassing retail, office, research and development, industrial and hotel space. The company manages properties in 22 states and has more than 3,700 employees.

Through its subsidiaries and affiliates, Rouse owns and operates 46 retail centers totaling 40 million square feet with 137 national department stores and 7,000 small merchants.

Among the company's most recognizable projects are the Faneuil Hall Marketplace in Boston and Harborplace in Baltimore. Rouse also opened the Village of Merrick Park in Coral Gables, Fla., and is developing the Shops at La Canterra in San Antonio. The company's largest retail project is Fashion Show mall in Las Vegas with 250 retailers in 1.9 million square feet.

"Within the last few years, The Rouse Company has undergone a strategic shift in which the company sold properties that were not among the top in their respective markets," Anthony Deering, chairman and chief executive officer of Rouse, said. "Our goal is to own and operate only the best properties within the markets in which we do business, and Las Vegas is the premier example of that strategy."

"Both Summerlin and Fashion Show are in leagues of their own: Summerlin, as the nation's top-performing master-planned community; and Fashion Show, as the most exciting retail destination on the Las Vegas Strip and one of the country's best shopping addresses," he said.

"Las Vegas is the very embodiment of the type of city in which Rouse wants to be. As a high-growth market that will continue to flourish as a leading tourist destination, and one of the country's most desirable places to live, Las Vegas is incredibly attractive for development of all kinds. The Rouse Company is indeed bullish on Las Vegas."

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