Wednesday, December 03, 2014
EnLink move to Arts District fills up most of 7-Eleven space at a higher rent
Early this year when word got out that 7-Eleven Corp. was headed to the ‘burbs, the pending relocation caused some head scratching.
After six years in its headquarters in the Arts District and with many years left on its lease, the national convenience store chain had a deal with building owner Billingsley Co. to move out.
Billingsley would construct 7-Eleven a new headquarters in Irving, leaving more than 200,000 square feet of empty office space behind in the developer’s One Arts Plaza building on Routh Street.
Does this sound like a plan?
As it turned out, it was brilliant for Billingsley and for energy firm EnLink Midstream Partners LP which needs a new home and will take almost 160,000 square feet of the former 7-Eleven space.
“EnLink is excited to be coming to the Arts District,” said developer Lucy Billingsley. “They will be a huge compliment to Thompson & Knight,” the other major office tenant in One Arts Plaza.
The deal EnLink signed with Billingsley takes a major tenant out of the Uptown market that had been considered as a catch for new buildings proposed in the area.
“We are in a very fortunate situation versus all the new construction,” Billingsley said. “Our construction costs were at 2005 levels.
“The cost of this building affords us to be able to offer a rental rate much less than today’s market,” she said.
While no one is talking about the terms of the transaction, it’s no secret that EnLink will be paying significantly more than 7-Eleven signed up for six years ago.
EnLink is moving from a building near the Crescent at 2501 Cedar Springs and will increase the size of its headquarters by more than 40 percent.
JLL’s Steve Thelen, Jeff Staubach and Torrey Littlejohn negotiated the lease with Billingsley’s Lucy Burns and Marijke Lantz.
Dallas-based architecture firm Corgan has been hired to design the new offices.
“With this deal we have only one and a half floors at One Arts Plaza left to lease,” Billingsley said.
Billingsley said the plan is for 7-Eleven to make its relocate to the new building in January of 2016 and EnLink will move in a few months later.
By Steve Brown Dallas Morning News email@example.com