Tuesday, July 24, 2007

200 Million Dollar Mixed Use Development - McKinney

DALLAS-Granite Properties and Gables Residential plan to start construction in January on a $200-million mixed-use project of two towers combining office, apartments and retail space on a site at the northwest intersection of McKinney Avenue, North Akard Street and Cedar Springs. According to Greg Fuller, chief operating officer of Granite, the construction schedule will bring the development onto the market in time to meet demand that is expected when the two towers are ready for occupancy.
"We based our decision to move forward on the current supply and demand, and the forecasted supply and demand for the fourth quarter of 2009 through the fourth quarter of 2011, which is when we'll be leasing," Fuller says. Additionally he notes that more than $6 billion worth of infrastructure and development in under way in the area from the Woodall Rodgers Park, the Arts Center area, and other office and residential.
Designed by the architectural firm of Good Fulton & Farrell, with Austin Commercial as the general contractor, the Granite + Gables Uptown development will be situated on a site of more than 2.1 acres adjacent to the historic El Fenix restaurant. The site is within walking distance of Victory Park, American Airlines Center, the Ritz-Carlton, the Crescent and the new Woodall Rodgers Park.
The office portion of the project will be a 14-story tower on top of six levels of parking and retail, with approximately 330,307 sf of rentable space. Among the attractions for office tenants will be efficient floor plates, signage opportunities and a parking ratio of three spaces per 1,000 sf of office space, Fuller says.
The residential portion of the development will be a 17-story high rise over seven floors of parking, creating a tower of 24 stories with approximately 296 units. The office and residential buildings will sit atop a mixed-use podium with 17,000 sf of retail and restaurant space, a fitness center and pool area sitting on a common amenity deck above the garage.
Fuller and Doug Chesnut, senior vice president of Gables, unveiled the plans for the project this week. Granite acquired the property, which is occupied by a parking lot and a billboard, in 2006 as its first Uptown site.
Fuller says that Bill Brown, Granite’s senior director of investments, spearheaded efforts to locate a site in Uptown for two years before the company landed this one. Commenting on the Uptown location, Fuller says, "We believe that over the next several years, everyone will realize that this is the area to live and work in."

By:Bob Howard

Friday, July 13, 2007

Uptown Condo Tower Development

DALLAS-With a $250-million pipeline at work, SNK Realty Group is eyeing a year-end groundbreaking on a 24-story condo tower in the heart of Uptown. The Phoenix-based developer has jump-started talks with potential joint venture partners to meet the groundbreaking target.
SNK plans to lock in its joint venture partner before vertical work begins on the 2500 McKinney Ave. block, bounded by Fairmount, State and Routh streets. "There are just a handful of candidates that we're negotiating with right now," SNK's founder and CEO Hal Watson tells GlobeSt.com. He confirms that the buy-in opportunity went on the desks of a select few rather than wage a full-blown search for an equity partner.
In the interim, SNK Realty has just broken ground on the first phase of its third development in the metro, the 272-unit Allegro Addison at 15750 Spectrum Dr. in North Dallas. Its second phase, bringing as many as 72 additional units, will break ground in second quarter 2008. Meanwhile, SNK is readying its first two deliveries for their first residents. The 236-unit Arioso Apartment Homes at 3030 Claremont Dr. in Grand Prairie is opening this month and its 52-unit neighbor, Toccata Casitas, will open in August.
Now that it's gained its footing, Watson is ready to discuss the 2500 McKinney plan, just a temporary name while the SNK team polishes the branding. Site work will get under way before summer ends. Two office buildings will be scraped, driving the relocation of SNK's Dallas office.
Watson says the condo tower construction is slated to get under way at year's end, but it could bump into early 2008. The developer has penciled a 27-month construction schedule. Three general contractors are in the running for the contract.
Watson says the basic plan has seven two-story penthouses on floors 23 and 24, 30 sub-penthouses on floors 20 to 22 and 252 condos on floors three through 19. There's also a small street-level retail component. But, that's just the tower's skeleton.
SNK's Dallas-based architect, Gromatzky Dupree & Associates, has designed a condo tower befitting its 2.7-acre Uptown site. The project will have two brandings and two entrances to delineate the 37-unit penthouse component from the other condos.
The penthouses will have private elevators to an underground parking garage, with the seven two-story penthouses having optional individual elevators. The penthouses will have a separate lobby plus an SNK-branded private spa and fitness center and "for sale" poolside cabanas. The two-story units will average 3,882 sf; the 30 sub-penthouses, 1,878 sf. The remaining condos will average 1,250 sf. As for the price points, that's still being fine-tuned.
Once the tower's done, SNK will deed a 1.2-acre park to the city at the corner of Routh and State streets. To assemble the development site, SNK bought one alley from Dallas, agreeing to deed back the park after the project wraps up.
SNK began its Dallas push in September 2005. Its Allegro Addison is a 6.55-acre mixed-use project in the award-winning Addison Circle. The two-phased development will have 4,908 sf of street-level retail at completion.
SNK's partner for Allegro Addison is Ameriton Properties Inc., a division of Englewood, CO-based Archstone-Smith Trust. Guaranty Bank provided construction financing. The first phase will take roughly 15 months to deliver so rents have yet to be set.
SNK's partner for the Grand Prairie project is ING Real Estate Development, a division of New York City-based ING Clarion Partners. The Arioso Apartments, positioned on 9.83 acres, are one- and two-bedroom units ranging from 632 sf to 998 sf in a country-home design with balconies and upscale interior components. The 3.74-acre Toccata Casitas are two- and three-bedroom apartments ranging from 1,514 sf to 1,622 sf. Each one has a private drive, two-vehicle direct access garage and upscale interiors and appliance plus vaulted ceilings.
SNK typically is a merchant builder. Watson says the MO is to wait until leasing hits 50% before marketing begins. And, he says, the projects aren't a conduit to deliver product to its equity partners. In fact, he says there are no presales agreements in place for its present pipeline. "They're welcome to bid high," he says.
Watson says he's just returned from Austin, which he's eyeing as his next stop on the Texas drive. Houston and San Antonio, in that order, also are on the itinerary. And, of course, he's far from being done in Dallas/Fort Worth, where he's put in the groundwork for a full-service shop from property management to condo sales to retail leasing. "We're planning on continuing to look for new opportunities and we are building an organization that will be here long term," Watson says.

By: Connie Gore