Tuesday, June 10, 2014
More than $1.5 billion in projects in the pipeline in Dallas’ Uptown district
If you’re counting cranes, more of them are perched over construction sites in Dallas’ Uptown neighborhood than anywhere else in North Texas
Sure, all the buzz about Toyota Motor’s move has got the folks up in Plano excited, but if you want to see an honest to gosh building boom, drive to Uptown.
In the area stretching between Victory Park and CityPlace, the number of projects just keeps growing.
This week, construction crews broke ground on a 23-story apartment tower off McKinney Avenue. The residential high-rise will front on Maple Avenue next door to the Federal Reserve Bank of Dallas. The project is developer StreetLights Residential’s second high-rise apartment building in Uptown and will open late next year.
The 212-unit high-rise is one of five apartment towers being built in Uptown. At least a couple more are in the works.
With the best building sites now selling for more than $250 per square foot, you won’t see low-rise apartments started in Uptown.
Developers are scrambling to find enough building sites. There’s even a nine-story apartment block being built on top of the parking garage at 1900 Cedar Springs Road, at Harwood Street.
On June 19, ground will be broken on the vacant block next door, between Olive and Harwood streets, for a 20-story office tower.
Crescent Real Estate is starting work there on the 530,000-square-foot high-rise, called McKinney & Olive and designed by award-winning architects Pelli Clarke Pelli.
The $225 million Crescent office project has already signed a major lease with law firm Gardere Wynne Sewell LLP, which will move from downtown when the building opens in 2016.
On the corner opposite Crescent’s new building, survey crews were busy this week preparing for another office project. This one is being developed by KDC, the same firm building the huge State Farm Insurance campus in Richardson.
There’s still more groundbreakings scheduled in Uptown.
Houston-based developer Hines has announced plans for a 23-story office tower in Victory Park.
And RED Development of Phoenix wants to start work early next year on its $200 million Akard Place, at Field Street and Cedar Springs Road. The project would include a 16-story office tower and 20-story apartment building that StreetLights Residential will build.
Developer Harwood International is building its 22-story Frost Bank Tower on McKinnon Street near the entrance to Dallas North Tollway. Just north of that site, Harwood plans to start its 33-story Bleu Ciel condo tower later this year.
No fear factor
All together, more than $1.5 billion in current, planned and proposed developments are in the pipeline for Uptown. That’s about the same amount of money that it will cost to build the massive CityLine development in Richardson anchored by State Farm.
“I’ve never seen a market this hot,” said longtime Dallas property broker Newt Walker, who has sold dozens of Uptown properties over the years. “There’s so much going on down here that it’s like there is no fear factor anymore.”
Trammell Crow Co. just paid an eyepopping price — over $250 per square foot, brokers say — for the Chase motor bank at the entrance to Uptown at Pearl Street and Woodall Rodgers. Sneaked photos being displayed on real estate blogs show two sleek towers planned for the tract.
The biggest limit on development in Uptown is going to be a lack of affordable building sites.
Look for the high price tags there to push development to nearby Oak Lawn and the Dallas Design District.
Steve Brown- Dallas News