Thursday, December 01, 2016

Apartment Block Going Up Next To Highland Park Isn't After the Usual Uptown Renter

A new apartment community being built on the edge of Highland Park is after a different renter than the typical Uptown crowd.
Provident Realty Advisors' project on Cole Avenue, called The Katy, will open next summer with 215 rental units.
"We are almost topped out with construction," said Provident Realty CEO Leon Backes. "We will be renting units starting in the spring."
Located a block from Dallas' popular Knox Street retail district and on the city limits of Highland Park, the seven-story building fronts on a large courtyard and will have access to the adjacent Katy Trail.
Apartments in the building will be larger than the typical Uptown project, Backes said. Units will average about 1,300 square feet.
"We think our renter is going to be an empty nester — not a typical apartment renter," he said. "We are not gearing this to a right-after-college renter.
"It's because of the location and the clientele we are trying to attract."
A dozen three-bedroom apartments in the building will average almost 2,400 square feet. The smallest units will start at about $2,500 a month, and rent will range up to $10,000 for large apartments with terraces on the top floor.
The Katy will have underground parking, a dog park, a two-story fitness center and a clubroom. There will be two guest suites that tenants can rent for visitors.
The building was designed by Houston-based Ziegler Cooper Architects.
"It's very classic, timeless, modern and sleek," Backes said.
About 30 percent of the renters of new apartments in urban areas including Uptown are 50 and older, leasing agents say. Developers are building larger apartments to appeal to these mature renters.
Provident Realty is the same developer building Preston Hollow Village at North Central Expressway and Walnut Hill Lane, which has three apartment buildings.
And the developer has a project in the nearby Midtown Park community on Meadow Road.
Written by Steve Brown - Dallas Morning News
Uptown Dallas Office Tower on Mckinney Avenue Getting an Upgrade


Owners of a 1980s Uptown office tower are about to start a revamp of the high-rise.
Invesco Real Estate has owned the 13-story 3131 McKinney Ave. building for two years. Built in 1984, the 150,000-square-foot property is 90 percent leased.
Invesco, like other Dallas office owners, next month will start a redo of the building to "elevate the building's image within the market and significantly enhance the tenant experience," said Invesco's Chris Cleghorn. "We will be investing $2.25 million into the project commencing this December with completion targeted for March 2017."
Planned upgrades include a new entry, outside landscaping and lighting on McKinney Avenue.
"The parking garage will get completely remodeled elevator lobbies," Cleghorn said. "We will also be upgrading our tenant common areas to a higher quality building standard, including a remodeled elevator lobby, tenant corridor and restrooms."
Dallas design firm Staffelbach is handling the interior redos.
Written by Steve Brown - Dallas Morning News
One of Downtown Dallas' Largest Skyscrapers Is Up for Grabs

Renaissance Tower has more than 1.7 million square feet. (File Photo)

One of downtown Dallas' largest skyscrapers has just hit the market.
The 56-story Renaissance Tower on Elm Street has about 1.7 million square feet. The tower is a standout on the Dallas skyline, with its X-shaped exterior lighting and lighted towers on the roof.
It's owned by a New York-based investor who has hired commercial real estate firm CBRE to market the high-rise to potential buyers.
Moinian Group with SMA Equities bought Renaissance Tower in 2006 for more than $150 million.
The 42-year-old Renaissance Tower is one of downtown's last skyscrapers yet to receive a major makeover. Most of the older buildings in Dallas' central business district have gotten major renovations in recent years.
Several of downtown's largest office buildings have changed hands in the last couple of years.
Earlier this year, the 55-story Chase Tower on Ross Avenue sold for about $285 million to Fortis Property Group of New York.
Written by Steve Brown - Dallas Morning News
One of Denton's Biggest Shopping Centers Changes Hands

A Houston investor has purchased one of the largest shopping centers in Denton.
Fidelis Realty Partners said Tuesday that it has purchased Rayzor Ranch Marketplace, at Interstate 35 and U.S. Highway 380 in Denton.
Some of the tenants in the 641,0000-square-foot regional retail center include Academy Sports + Outdoors, Ross Dress for Less, Petco, Jo-Ann Fabric and Crafts, Boot Barn and Guitar Center. The acquisition also included approximately 18 acres of development land.
"There were many attractive attributes to this property including the high population growth and household formation in the Denton area," Fidelis Principal Rick Coe said in a statement. "The quality of the tenants in the center was also a deciding factor in our acquisition."
The Denton purchase is the fifth property acquired by Fidelis Realty Partners since 2014.
The company now owns 1.3 million square feet in the Dallas-Fort Worth area. Its North Texas properties include Eldorado Marketplace in Frisco, Market East Shopping Center in Mesquite and Collin Creek Shopping Center in Plano.
Written by Steve Brown
Legacy West's New Campus for FedEx Office in Plano Is Up for Grabs

The first phase of the $3 billion Legacy West development in Plano is up for sale.
FedEx Office's international headquarters on Legacy Drive near State Highway 121 is being offered for sale to investors.
The 265,000-square-foot office campus was built by developer KDC and was the first building to open in the 250-acre Legacy West complex.
It's across the street from where Toyota Motor's new North American headquarters is under construction.
About 1,200 FedEx Office workers are housed in the campus, designed by architects HKS and HOK.
Along with offices, the building includes a fitness center for employees, a cafe and meeting space. There's also a mock store on the ground floor.
FedEx occupies the building on a long-term lease. KDC is offering the property to investors.
The 19-acre FedEx campus was the first project announced in Legacy West in early 2014. FedEx moved into the campus about a year ago.
The Legacy West office project is one of two corporate campuses KDC has for sale.
The developer is also seeking a buyer for the 489,000-square-foot Raytheon Corp. office complex in Richardson. It's part of the $1.5 billion CityLine development.
Written by Steve Brown - Dallas Morning News
Shared Office Provider Takes Big Chunk of Downtown's Thanksgiving Tower

New York-based collaborative office firm WeWork is upping its bet on the Dallas market with a large downtown office lease.
WeWork has rented three floors in the 50-story Thanksgiving Tower on Elm Street for its second location in Big D.
This summer, the shared office firm rented a smaller space in a new Uptown building for its first North Texas location.
WeWork has facilities in more than a dozen major U.S. markets.
The firm will rent about 84,000 square feet in Thanksgiving Tower, which is getting a $37 million makeover.
"WeWork provides a redefined model of office space geared toward creative and collaborative individuals and business of all shapes and sizes," said Jonas Woods of Woods Capital, one of the owners of Thanksgiving Tower. "They fit perfectly in the new, modern Thanksgiving Tower and our completely redefined downtown."
With WeWork's lease, the skyscraper is about 60 percent leased, Woods said.
WeWork is one of several collaborative office companies that are expanding their footprint in North Texas with multiple locations.
The firms provide office space for start up companies, creative firms and other businesses that utilize the flexible workspace. The shared office facilities provide everything from single workstations to private offices and team rooms.
WeWork officials would not comment on the new Dallas office, even though the building owner has disclosed the transaction.  "While we are always looking for new communities, we have no further locations to announce at this time," a spokeswoman with the firm said.
Longtime executive suite firm Regus Group just opened a large shared office center on McKinney Avenue in Uptown.
Another New York firm - Serendipity Labs Co-Working - has announced plans for multiple Dallas-Fort Worth operations.
Dallas-based co-working firm Common Desk is also adding locations.
The almost 1.5 million-square-foot Thanksgiving Tower is currently getting its first major renovation since the building was constructed in the 1980s. Upgrades include new retail and outdoor dining areas.
Woods Capital owns Thanksgiving Tower in partnership with New York-based Third Point Opportunities Master Fund.
Written by Steve Brown - Dallas Morning News
High-Rise Residential Building in the Works for Irving's Las Colinas


Dallas' high-rise apartment boom is spreading to Irving.
Almost a dozen high-rise residential buildings are currently being built in Dallas.
Now developers have tied up a site in Las Colinas with plans to build an apartment tower.
Legacy Partners — one of the country's top apartment developers — has contracted to purchase a 5-acre site on Las Colinas Boulevard east of State Highway 114.
The vacant tract is on the south shore of Lake Carolyn.
"The site has lot of lake frontage," said Legacy Partners' Spencer Stuart. "It will be 17 or 18 stories with a great view across the lake and views of downtown Dallas."
Stuart said the tower will be surrounded by four-story apartments in the same development.
The only high-rise residential building in Las Colinas is the 17-story Grand Treviso condominium tower, which was built in 2002 as apartments.
"There hasn't been any product like this in Las Colinas for a long time," Stuart said.
Written by Steve Brown - Dallas Morning News
Akin Gump, One of Last Large Downtown Dallas Law Firms, Considers Uptown Move

Akin Gump now has about 90 attorneys working in the 49-story 1700 Pacific tower downtown.DMN files

One of downtown Dallas' last mega law firms is eyeing a jump to Uptown.
Akin Gump Strauss Hauer & Feld LLP is scouting new office locations in two towers being built in Uptown.
The legacy Dallas legal firm is currently in the 1700 Pacific tower on the northeast side of downtown.
The Park District office tower under construction along Klyde Warren Park and the Union Development being built at Akard Street and Cedar Springs Road are top contenders for Akin Gump's new location, property brokers say.
A spokesman for the law firm said he didn't have "anything to share about the timing or other details pertaining to a possible move.
"Our Dallas office has approximately 90 lawyers," Benjamin Harris said.
Akin Gump was founded in Dallas in 1945 and is one of the city's legacy legal firms.
It's also one of the last major law firms still in downtown's financial core. The company's lease at 1700 Pacific runs until the end of 2018.
That would give developers time to complete either of the major projects now under construction in Uptown.
The Union has more than 400,000 square feet of office space. 
The $250 million Park District project at Pearl Street and Klyde Warren Park has 500,000 square feet of office space. Accounting firm PriceWaterhouse Coopers will be the lead office tenant with 200,000 square feet.
CBRE is representing Akin Gump in its negotiations for office space.
Dallas' top legal firms began moving to Uptown in the late 1990s.
The largest company to recently make the move — Gardere Wynne Sewell LLP — just relocated its offices to the new McKinney & Olive tower on McKinney Avenue.
Sidley Austin LLP is also moving to McKinney & Olive.
Written by Steve Brown - Dallas Morning News
Dallas' Lower Greenville Will Get First Major Development In More Than a Decade


The only large development site in Dallas' popular Lower Greenville district has a new owner.
And developer Trammell Crow Residential isn't wasting any time moving ahead with construction plans.
The more than eight acre vacant property at Greenville Avenue and Belmont was previously the site of the Vickery Towers retirement community. Built in 1964 as a luxury apartment community, Victory Towers had almost 400 rental units in four 5-story buildings.
Seattle-based investment company Columbia Pacific Advisors tore down the old multifamily buildings and planned to construct an apartment community.
But Dallas-based apartment builder Trammell Crow Residential has purchased the high-profile development site and is getting ready for a ground breaking.
"We are adhering to the same building footprint and height as the previous owner but altering the architecture to fit more with the neighborhood," said Crow Residential's Steve Bancroft. "No zoning change, no retail, all parking subgrade.
"We should start construction in December or January."
Bancroft said the project will include about 475 apartments.
The new rental community will be the largest such project built in the Lower Greenville neighborhood in more than a decade.
The City of Dallas is just completing a major streetscrape upgrade along Lower Greenville that includes new paving, landscaping and sidewalks.
Acorss the street from the Vickery Towers site, the vacant former Wal-Mart store is the largest available retail space in that area of East Dallas.
Trammell Crow Residential is Dallas' busiest apartment builder with multiple projects in close in locations. 
Written by Steve Brown - Dallas Morning News

Developer Cawley Partners Plans Allen Office Project

Dallas developer Cawley Partners, which has projects along Dallas North Tollway in Addison and Plano, is headed to Allen with its next development.
Cawley Partners is building a 100,000-square-foot, three-story office building on U.S. Highway 75 between Bethany and Legacy drives.
"This building is located in the Watters Creek development with multiple restaurants, shopping, etc., which fulfills the live, work, play atmosphere companies are looking for," developer Bill Cawley said in a statement. "The building is also within minutes to a large portion of the far north Dallas workforce, and it will fill the ever-expanding need for more office space options between S.H. 190 and S.H.121.
"It's the perfect building for a large corporate user who needs large, efficient floor plates close to its employee base."
The office project, designed by architect GFF, will be one of the few speculative developments in Allen, where officials have been working to attract more business employers.
Cawley Partners just announced plans for a five-story, 240,000-square-foot office project on the tollway south of Belt Line Road. It's the first of two buildings Cawley plans on the site.
Occidental Petroleum has already leased half of the first building.
Written by Steve Brown - Dallas Morning News
Two Dallas-Area Funds Raise Hundreds of Millions for Property Buys

Transwestern Investment Group's new real estate fund is buying office properties, including this building in Scottsdale.TIG

Two Dallas-Fort Worth real estate investors have raised hundreds of millions of dollars for new property buys.
Crow Holdings Capital — Real Estate said Monday that it has $417 million in capital commitments for its Crow Holdings Retail Fund II.
The closing of the new investment fund comes on the heels of its $295 million in capital commitments for Crow Holdings first retail fund in 2015.
"We are pleased to close on Retail Fund II, a unique opportunity to acquire small food and service-oriented centers near universities, hospitals, corporate office parks, and densely populated neighborhoods," Bob McClain, head of real estate at Crow Holdings Capital-Real Estate said in a statement.
Dallas-based Crow Holdings has invested for 18 years in properties in major U.S. markets.
The company has raised $6.7 billion for 10 real estate investment funds since 1998.
Also, Transwestern Investment Group — the same company that last week bought the 2.1 million-square-foot State Farm Insurance campus in Richardson — said Monday it has commitments of $160 million for its TSP Value and Income Fund I.
The property investment fund buys mostly in industrial and office assets in major and secondary markets.
So far the Transwestern real estate fund has purchased more than 3.6 million square feet of industrial property in Chicago, Indianapolis, Columbus, Louisville and Austin. The fund has purchased over 900,000 square feet of office properties in San Jose, Scottsdale and Atlanta.
"We are pleased to close the TSP Value and Income Fund I with such resounding success," Laurie Dotter, president of Transwestern Investment Group, said in a statement. "We appreciate the trust of our institutional investors and their confidence in the combination of our independent investment management team and our nationwide operating platform to generate attractive risk-adjusted returns."
Written by Steve Brown - Dallas Morning News
Oak Lawn's Historic Argyle Apartment High-Rise Has a New Owner

The Argyle is one of the longest continually operating apartment buildings in Dallas.Indio Management

A landmark Dallas apartment tower has changed hands.
The 7-story Argyle Apartments opened in 1927 on Oak Lawn Avenue just a block from the Melrose Hotel.
Built for the grand sum of $400,000, the red brick and stone building was described as "one of the finest of the several large modern apartments erected in Dallas in recent years."
With about 50 rental units, the building at Hall Street and Oak Lawn the Argyle is one of the oldest continually operating residential buildings in Dallas. Units in the Argyle range in size from 277-square-foot studio units to 2-bedroom apartments with more than 1,200 square feet.
The building has been sold to a real estate partnership represented by Indio Management, Dallas County deed records show.
Indio's Seth Bame said no major changes are planned for the building.
"We're going to clean up a little bit," Bame said. "We want to keep it eclectic as we got it."
Veritex Community Bank provided a $6.625 million loan on the property, county records show.
Indio Management operates more than three dozen Dallas-Fort Worth residential properties in close-in Dallas and Fort Worth locations.
Written by Steve Brown - Dallas Morning News

Monday, November 21, 2016

Duke Realty, Baylor Scott & White Health Open 77,000 SF Medical Office Building in McKinney, Texas

baylormckinney2mob-mckinney-tx

MCKINNEY, TEXAS — Duke Realty and Baylor Scott & White Health, a not-for-profit healthcare system, have opened Baylor McKinney Physician Office Building 2 in McKinney. Located at 5252 W. University Drive, the three-story, 77,000-square-foot building is adjacent to Baylor McKinney I, an 114,924-square-foot medical office building. Affiliates of Baylor Scott & White lease a significant portion of both buildings. The Dallas office of Medco Construction served as general contractor, while the Dallas office of HDR served as architect for the project, which was developed by Duke Realty.

Civitas Capital Group Opens $15M Affordable Seniors Housing Facility in Dallas

simpson-place-dallas

DALLAS — Civitas Capital Group, along with StoneGate Senior Living, has opened Simpson Place, an affordable seniors housing facility in Dallas. The $15 million, 95,000-square-foot property offers 150 assisted living units. The development was financed through a public-private partnership involving the Dallas Housing Authority, City of Dallas, Federal Home Loan Bank, Amegy Bank, StoneGate Senior Living and City of Dallas Regional Center.

Thursday, November 10, 2016

What's Up with the Top of That 400 Record Street Tower in DownTown Dallas?



Anyone who's been to the southwest side of downtown Dallas lately is asking the same thing - what's going on on the top of that building?
Construction crews have been dismantling the upper floors of the 17-story former Belo Building at Young and Market Streets.
Now called 400 Record Street, the 1980s high-rise is getting a top to bottom redo.
Most noticeable is all the work on the upper three floors where contractors have removed the granite and glass exterior.
On the weekends, towering construction cranes lift new beams to the top of the building.
The profile of the downtown tower is being changed with an outdoor garden and deck on the roof, the architect who worked on the makeover says.
"We wanted to redefine the bounding on the skyline - give it a new presence," said Zach Edwards, principal with architect Gensler. "The new owners wanted to rebrand it as their headquarters building."
City Electric Supply - which bought the tower in 2014 - will use the refigured top of the building for its executive offices.
"On the 17th floor before it had a glassed in sky garden," Edwards said. "It wasn't a very hospitable place. - not very usable.
"We pitched the idea of opening it up and creating and outdoor sky garden with view of the Trinity River," he said. "It's going to create an outdoor event space and they will be able to host events and gatherings up there.'
A metal grid canopy that matches the one being installed at the base of the tower will extend over the new opening at the top.
"We need to provide some shelter - we didn't want it baking up there all day," Edwards said.
Opening the top of the tower and installing that grid takes some work to accommodate wind and water. "We had a full team of engineers and a wind analysis done," he said.
On the downtown side of the tower, the upper floors are getting an all-new look, too.
"The slender windows and stone have been removed and being replaced with floor to ceiling glass," Edwards said.
A final addition to the tower exterior will be installation of LED lighting effects.
Written by Steve Brown - Dallas Morning News
The End of 'Insane Regulations'? D-FW, National Real Estate Markets Weigh Potential Trump Effect

The hot commercial real estate and housing markets are heading into the final months of the year with a lot of momentum.
Will a surprise Trump win in the presidential election make investors and homebuyers take a step back?
"Thankfully our November elections come at one of the slowest time of the year for home sales, so I doubt we will see much disruption to the normal seasonal pattern," says Jonathan Smoke, chief economist at Realtor.com. "However, one short-term risk could be If the outcome has a big impact to financial markets that lasts more than a few days, then we could see some disruption beyond the usual seasonal decline.
"Unfortunately we don't have a comparable period in history with good data to draw any sharper conclusions," Smoke said. "Remember that about half of voters got what they wanted.  If this does impact purchases it is more likely to be in blue states and not the red heartland."
James Gaines, chief economist at the Real Estate Center at Texas A&M University says he expects no short term changes in the Texas housing markets because of uncertainties created by the election. He's more concerned about Federal Reserve actions that would hike finance costs and thinks a December rate hike is now more likely.
"The main result is greater uncertainty about future," Gaines said. "Folks will either hunker down and do nothing or anticipate tougher times - i.e. higher interest rates - and try to move quicker to buy."
Ralph McLaughlin, chief economist with Trulia.com, said the Trump effect on housing could be different across the nation.
"The shock of a Trump victory will be both a boon and drag on confidence of American homebuyers," McLaughlin writes in a statement. "Homebuyers in economically healthy blue states will likely be rattled and more hesitant about the future the U.S. economy, which will curb their interest in making large investments.
"In economically stagnant red states, on the other hand, homebuyers will likely feel a surge of confidence that could bolster demand."
Commercial real estate execs were already seeing some slight pullback this year.
But a surge of foreign capital coming into the market in North Texas and the U.S. has fueled more building buys.
"I would expect a short - very short pause - and then back to business as normal," said Jeff Swope, who heads Dallas commercial real estate investor and developer Champion Partners. "The great news is that there is a businessman as president - should mean an opportunity to lessen some of the insane regulations being forced on businesses."
Most investors don't see a short-term change in the property markets.
"My personal view is that it will have relatively little near term impact on real estate transaction activity," said Greg Kraus with Invesco Real Estate. "We can speculate on the longer term effects based upon his stated policies but believe it will come down to his first 100 days in office to really determine the impact of a Trump presidency on the real estate sector broadly.
"Areas I'll be watching: Immigration policy and how it could effect construction labor, interest rates and trade policy on the logistics/industrial sector."
Jack Crews in the Dallas office of commercial real estate firm JLL said there is uncertainty among the investors he talks with about what a Trump election means.
Written by Steve Brown - Dallas Morning News
Why Dallas Area Apartment Builders, Analysts Expect Starts to Slow in 2017

With more than 28,000 apartments set to open in North Texas next year, will there be enough renters to fill them all?
As long as Dallas-Fort Worth's economy keeps growing at current levels demand for new rental units will remain high, apartment analysts and developers say.
But developers say that tougher financing requirements and affordability issues could put a ceiling on rising apartment construction in the year ahead.
Currently there are more than 50,000 apartments under construction in North Texas - more than any other metro area in the country.
"Dallas-Fort Worth has really had a tremendous run in this cycle," said John Sebree, national director with commercial real estate firm Marcus & Millichap. "
people say it seems this cant keep going - look at all the cranes in the air.
"It seems like a lot but you have had 130,000 new jobs in the last 12 months so it' going to be okay," Sebree said. "I'm not seeing anything that leads us to believe we are getting out over our skis."
But other factors are likely to reduce apartment starts next year, even in D-FW, Sebree told hundreds of apartment builders and managers meeting in Dallas Thursday morning.
"About six months ago the lenders really started pulling back on new construction," he said. "They started increasing the equity and requirements.
"There is a possibility that in 2018 we actually see a drop in new construction deliveries."
Apartment builder say they are having to put more money into new projects at the same time construction costs are jumping and rents resistance is growing.
"In the really active markets the lenders have been pulling back a lot," said Spencer Stuart with developer Legacy Partners. "Where we used to be able to get 10 or 12 lenders to look at a new project, now we are sometimes looking at one.
"The equity requirements - especially on our larger projects - is a minimum of 40 percent," Stuart said. "We think that's going to slowdown the market a bit."
Stuart said he sees no slowdown in construction or land cost increases, which have driven rents in North Texas to record levels.
On average apartments in the D-FW area now rent for more than $1,000 a month. And the newest units go for about $1,400.
Developers say that spiking apartment costs have put a strain on renters.
"It's an affordability issue," said Doug Chesnut, one of the founders of StreetLIghts Residential, one of Uptown's busiest apartment developers. "People just can't afford the cost.
"We can build it but if they can't afford it will set there vacant."
Rick Williamson with Dallas-based apartment builder Lang Partners is also worried about rising apartment tents.
"We are seeing a ceiling of around $1,800 a month," Williamson said. "I'm not sure how many 27 year olds coming out of school want to keep spending $1,800 a month for an apartment."
He said developers are having to start offering rent concessions to attract and retain tenants in some neighborhoods where there has been lots of construction.
"We're typically seeing a month free up front," Williamson said. "You always have our crappy units and end up doing two months."
Construction costs have been rising even faster than apartment rents, which is reducing profits on new developments, builders say.
"We've had upward pressure on labor," said developer Mike Lynd. "Hopefully we will see that trend down soon but we haven't seen it yet.
"Texas is still on fire."
Even though North Texas apartment vacancy averages less than 5 percent, apartment builders and analysts seem resigned to more empty units and smaller rent increases in 2017.
Greg Willett, chief economist with MPF Research, said that about 50,500 apartments are being built in the D-FW area.
"We've been at that point just one time previously in the mid 1980s," Willett said. "It's a lot that's on the way.
"In Uptown and downtown Dallas we have more than 6,000 units under construction," he said. "You also have about 6,000 units under construction in Frisco and about 4,000 in the Allen -McKinney area."
He said so far demand has been keeping up with new supply but that might change in 2017 because of the huge volume of apartments that will be opening.
"We have been doing pretty well but we are going to have to do better than that if we can absorb all these new apartments," Willett said.
He predicts that average vacancy will increase by about 25 percent.
Written by Steve Brown - Dallas Morning News