Thursday, July 02, 2015

How Champion Partners will transform a once troubled Turtle Creek tower into prime property

After buying a once troubled office high-rise on Maple Avenue for $64.2 million, Dallas-based Champion Partners plans to spend millions rebranding and modernizing the 18-story glass mirrored office building.
The 376,000-square-foot building — once known as 3500 Maple — will be rebranded as Parkside Tower, highlighting the building's proximity to the parks along Turtle Creek Blvd.
"This is the most comprehensive renovation in Uptown for a quality building in some time," said Champion Managing Partner Jeff Swope, adding he wants the office tenants to feel healthier when they come into work.  
Champion Partners and its partner on the building, Stamford, Connecticut.-based Building Land and Technology, has hired Gensler to design the vast renovations to the building, which was neglected for some time from the past ownership group.
Prior to defaulting on a loan, the prior ownership group — a 33-investor tenant-in-common group — was unable to keep up with building improvementsand lost tenants as a result.
The 1985-era tower sits near Reverchon Park near Turtle Creek, and at the time of the deal was 56 percent occupied. It was also valued at $51.9 million, according to the Dallas Central Appraisal District.
Plans for the renovations include a new building lobby and entries, a new outdoor plaza and courtyard area, a new common lounge and seating areas with Wi-Fi connectivity, a high-quality fitness center with club-like locker rooms, a modern cafe with a healthy menu and a new front door drop area along Maple Avenue for tenants.
Construction is currently underway, with renovations slated for completion by the end of the year.
If Champion Partners and Building Land and Technology's renovations are pulled off as foreseen, the rebranded building could get a boost in occupancy rates, as well as see an uptick in rental rates.  
The Uptown area is one of the submarkets in the region that has seen a rise in office leasing rates, according to a recently releasedCushman & Wakefield report on the second quarter of 2015. In North Texas, the average rental rate for Class A property is $27.12 per square foot.
DTZ Executive Managing Director Johnny Johnson said he hopes the new Parkside Tower will serve as a gateway to Uptown.
"Companies are looking to attract and retain quality employees and these are the types of amenities people are looking for, so our job as leasing agent for the building is to help create and office atmosphere that caters to this growing need and give the market and our tenants what they want," he said.   
Candice Carlisle/ Dallas Business Journal