Wednesday, May 07, 2014

Statler Hilton, 1600 Pacific deals near closing

Merriman Architects Associates
The Statler Hilton, which has been vacant a decade, will be redeveloped by the group into luxury residential tower with a retail component.
Developer Mehrdad Moayedi, president of Carrollton-based Centurion American Development Group, recently got a nod from Dallas' economic development committee for nearly $44 million in tax increment financing funds to help finance the $175 million redevelopment project, which was necessary before the deal could close. Two major redevelopment projects that could change downtown's skyline -- the historic Statler Hilton and 1600 Pacific -- are getting closer to turning into a reality.

Each deal is expected to close by the end of the month, which is a big win for downtown Dallas, said John Crawford, president and CEO of Downtown Dallas Inc.

"These are two older buildings in downtown that will start to be redeveloped after they close," Crawford told the Dallas Business Journal.

With the hotel, Centurion also bought the building designed by George Dahl next to theStatler Hilton that once housed the Dallas Public Library.

Plans for the redevelopment include turning the aging hotel, adjacent library and two nearby parking lots into residential, a hotel, restaurant and retail space, office space, a theater, a ballroom and a hotel lounge.

If the group succeeds, it will be Centurion's second development in Dallas to make a comeback.
In the past year, Moayedi has been working on the Residences at the Stoneleigh, which is a $220 million luxury residential tower Centurion bought from foreclosure for $4.55 million in 2010.
The developer is applying for state and federal historic tax credits on the development. The project will remove more than 669,000 square feet of vacant space from downtown's vacant building inventory.

If the Statler Hilton deal closes by the end of this month, Centurion plans to begin construction by the end of the year, with an anticipated completion date of October 2017.
Along with the Statler Hilton, New Orleans developer HRI Properties plans to close on 1600 Pacific, a 32-story building in downtown Dallas, with hopes of redeveloping it into a hotel. The deal has been held up since last year because of an easement underneath the property, Crawford told me.

Both properties are being sold by affiliates of Leobardo Trevino's Ricchi Investments company, which readied the two projects for redevelopment.
Staff Writer-Dallas Business Journal