Forest View project property up for sale  

A 47-acre Iowa City Peninsula-area parcel rezoned for possible hotel, retail and commercial use two years ago has hit the market, as developers deal with fallout from the pandemic and the need to recalibrate for post-COVID market conditions. According to a new listing with commercial real estate firm CBRE, the 46.94-acre commercial component of the long-delayed Forest View mixed-use development south of Interstate 80 and west of Dubuque Street is for sale for an unspecified amount. The listing describes the property as a “prime mixed-use development site” and a “gateway to the University of Iowa” that could be used for retail, office, medical, lodging, multi-family, townhome, single-family or senior housing development. The property is part of a $200 million, 73-acre project that was announced in 2016 and won Iowa City Council rezoning approval in 2019. Developer Blackbird Investments’ original plans called for 57 single-family homes, at least 280 multi-residential units, a senior housing community, two hotel pads, 30,000 square feet of commercial space and 60,000 square feet of office space. As part of the rezoning agreement, displaced residents of Forest View Trailer Court were to be relocated into a new manufactured housing neighborhood west of the mobile home park’s current site and offered rent-to-own options. Developers also agreed to pay for a second access road out of the Peninsula neighborhood, currently serviced only by Foster Road, which was rendered impassable and choked residents off during the flood of 2008. Justin Doyle, president of Blackbird Investments, told the CBJ that while the project was complicated — and had only grown more so during the pandemic —“we’re not going anywhere.” “The component that is available for sale are the parcels for hotel, retail and multifamily,” he said in an email. “Just to clarify, the new Forest View homes are not part of commercial stuff and not at all for sale. Ownership is keeping that property and developing it ourselves.” Mr. Doyle said the project had been delayed by the need to “tweak a few of the parcels to adjust to post-COVID market conditions,” noting, for instance, that the office market is currently soft. “We’re going to start that process in the coming weeks and have already been in contact with the city regarding it,” he said. “[The] project definitely isn’t scrapped, but there is more work to do and 2020 hasn’t helped speed things along.  Having buyers for the eastern parcels ready to build helps march things along and get us to the point of final development agreement with the city.  After that, roads and utilities get put in, and then we will see actual buildings on those parcels and the creation of the new Forest View.” Delays in the project have been a source of frustration for residents of the Forest View mobile home community, whose anxiety about the long wait for new housing was compounded by damage to existing units from last summer’s derecho. Last November, members of Carpenters Local 1260 in Iowa City organized a community event to assist residents with much-needed home repairs to help them get through the winter. The union noted at the time that Forest View Mobile Home Park is one of Iowa City’s oldest neighborhoods as well as one of the few remaining affordable housing options in town. Some residents have lived there for over 40 years. Iowa City Economic Development Director Wendy Ford said any changes to project plans would have to go through a formal approval process, adding “my understanding is [developers] couldn’t build out without building those new homes.” Ms. Ford said she was not in the loop on any proposed changes Blackbird is discussing with city staff. “Sometimes this happens when investors are seeking new partners,” she said of the sale, noting that moving forward is contingent on developers fulfilling obligations to mobile home residents and secondary access to the Peninsula area.