Tuesday, June 19, 2007

33 Acre Design District Redevelopment Acquisition


A Houston investor, Lionstone Group, has contracted to purchase a large stake in the Dallas Design District.
In February, owner Crow Holdings said that it was hunting a partner to redevelop almost two dozen properties it owns in the Dallas Design District near Oak Lawn.

Crow has plans to create a mixed-use development in the former industrial district next to the Trinity River.
But first the Dallas real estate investor wants to find someone to team with.
Real estate brokers say that Lionstone Group has stepped up to the table on the deal. The private company has already invested in properties in Chicago, Denver, Los Angeles, Seattle and Nashville, Tenn.
Officials with Lionstone were in meetings Monday and could not be reached for details. Holliday Fenoglio Fowler LP has been marketing the property for sale and says it's under contract, according to the company Web site.
In Dallas, the company owns the Exchange Park office complex near Love Field.
The Dallas Design District deal includes almost 33 acres, with about 1.4 million square feet of buildings.
Many of the former warehouses have been renovated into wholesale showrooms, artists' studios, retail and office space.
Development plans call for building more residential, retail and office space in the area.
The Trammell Crow family, which founded Crow Holdings, has owned real estate in the area since the 1950s.
In 2005, Crow Holdings sold a major stake in its nearby Dallas Market Center complex to outside investor CNL Income Properties.
Crow Holdings is redeveloping the historic Parkland Hospital complex on Maple Avenue just blocks from the Design District.
Lionstone Group was founded in 2001 by a group of executives formerly with Houston developer Hines. The firm has created a series of funds to purchase real estate with money raised from investors.

By STEVE BROWN