Wednesday, June 22, 2005

Downtown Dallas & Uptown Real Estate News

Downtown Dallas & Uptown Real Estate News

Galleria builder joins Hillwood to construct first work spaces

DALLAS (Dallasnews.com) - Houston developer Hines is teaming up with Ross Perot Jr.'s Hillwood development firm to build two office towers at Uptown's Victory project.

UNDER CONSTRUCTION
The 33-story W Dallas Victory Hotel & Residences with 144 condominiums, 251 hotel rooms and 42,500 square feet of retail space. To open in May.

The Terrace, a seven-story, 95-unit condominium building with 24,000 square feet of retail space. To open in May.

The Vista, a 125-unit apartment building with 25,000 square feet of retail space. To open in May.
The buildings will be constructed near Continental Avenue and Stemmons Freeway, at the south end of the 75-acre Victory complex between the West End entertainment district and American Airlines Center.

"We have signed a joint venture with Hines to build an 800,000-square-foot office complex," Jonas Woods, Hillwood Capital president, said Tuesday. "They have the kind of experience and have demonstrated the quality we want.

"It made sense for us to team up with them on the first office space in Victory," he said.

Hines built the Galleria Dallas mall and office high-rises all over the globe.

Construction so far in Victory has concentrated on hotel, residential and retail. But the project's master plan called for millions of square feet of office space.


BETSY BOCK/Staff Artist With Hines' addition to the development, construction of speculative office space will take a higher profile.

"We hope it's no more than six months away from a groundbreaking," said Mr. Woods. "The first building will be 18 stories with retail on the ground floor."

He said the office project is "subject to pre-leasing, but we are making very good strides." He said rental rates are projected to be in the "high $20s" per square foot annually.

That's more than most new suburban office buildings charge but still less than the luxury space at the nearby Crescent.

The complex will be Hines' first Dallas office project in several years. Clayton Elliott, a Hines senior vice president, said Victory's quality and location helped make the decision easy.

"It is seeing firsthand the new development going on down there," Mr. Elliott said. "There are eight additional buildings coming on line in the next few years.

"It's really getting to be a great urban environment for tenants to have another choice for their office," he said.

Dallas architect BOKA Powell is designing the two-phase project. BOKA Powell has worked on other buildings proposed for Victory, including a 45-story office and condo tower to be built across the street from American Airlines Center.

Almost $450 million in development is under way at Victory, including the W Dallas Victory Hotel & Residences set to open in May; two smaller residential buildings to be finished next summer; and two retail and commercial buildings to open in May on the south side of American Airlines Center. Already, several restaurants have signed on to be Victory tenants.Next week, Victory's developers are scheduled to announce plans for yet another residential tower – "The House" designed by Philippe Starck. The project will be done with London and New York-based Yoo Ltd.