Tuesday, June 16, 2015
The bulk of one of downtown Dallas’ most successful skyscraper redevelopments has been sold to a pension fund investor.
The 30-story One Dallas Center tower at Bryan and St. Paul streets was renovated starting in 2013 into a combination of luxury apartments and first-class office space.
The top 16 floors of apartments in the high-rise was just sold to a New England public pension investor represented by J.P. Morgan Chase.
And the office space in the lower half of the building is being purchased by a partnership headed by Dallas-based investor Woods Capital.
“We took a big risk when we bought and renovated this building and it worked,” said developer Shawn Todd with Todd Interests, which did the project in partnership with Moriah Real Estate Co. of Midland. “This building turned out to be a big asset for downtown Dallas.”
One Dallas Center — formerly Patriot Tower — was mostly empty and run-down when Todd bought it out of foreclosure at the end of 2012.
With financial incentives from the city, Todd and his partners had an idea to remodel the lower half of the 37-year-old building into office space for HKS Architects and Greyhound Lines.
The rest of the project was a bigger gamble —turning the top of the tower into luxury rental homes.
But the builders took advantage of the building’s original I.M. Pei design and its location on the DART rail line to launch the project.
Bank of the Ozarks financed the $40 million redevelopment.
StreetLights Residential oversaw the apartment part of the building redo, which opened late last year.
“The apartments are about 70 percent leased at higher rents than we expected,” Todd said. “The office space is fully leased.
“We took what was basically an empty building that nobody else wanted and turned it into something Dallas can be proud of,” Todd said.
He said the new owners acquired the rental units as a long-term investment.
HFF brokered the sale. Terms of the deal were not disclosed.
Woods Capital, which is buying One Dallas Center’s office space, is redoing the 50-story Thanksgiving Tower on Elm Street.
Investor Jonas Woods, who heads the company, said his purchase of the office space in One Dallas Center will be completed “within the next 30 days.”
Steve Brown / Dallas Morning News