Wednesday, December 28, 2016

This Trend Just Hit Dallas At Our New Lorenzo Hotel Next to The Dallas Convention Center

Downtown Dallas' First Shipping Container Retail Project Will open in January on the Parking Lot of The New Lorenzo Hotel Next To The Dallas Convention Center.
Travis Price Brookland

The Yard At Mission Rock
For an architect, innovative designs usually take years, rather than months, to materialize. But when Travis Price was approached by a panicked DC landlord needing a quick way to replace his dilapidated house in time for Catholic University students to move in that fall, he had just the solution.  Bisnow: Jon Banister Price, pictured above with senior architect Kelly Davies Grace, decided to try building with something unconventional: old sea shipping containers.  In less than six months, Price had finished designing, permitting and building the three-story, 24-bed apartment building made from 18 shipping containers in time for students to rent it in September. Price was amazed how quickly the project sailed through the permitting process, which typically would have put him past his deadline before construction could even begin. "We convinced the city, and it was not a hard sell," Price said. "They loved it, and every jurisdiction we’ve gone to and shown what it means, they’ve said, 'how many, how fast?'" When it came time to rent to students, it turned out the design was more than just convenient, it was also popular.  "The line was a mile long," Price said. "They want to be in the cool, hip new thing."  As one of the concept's pioneers, Price is often contacted by developers interested in building with shipping containers. He has conducted feasibility studies for roughly 70 other potential projects, about 30 of which he says appear to be moving forward. Courtesy: Travis Price Architects 
Travis Price shipping container apartments
At any given time, Price said, more than 2 million empty sea containers sit idle around the globe. For US companies to import goods, he said, it is often cheaper to build new containers abroad than to ship empty ones back for refill, creating a stock of empty containers around the country's ports that architects can use as building material.  

"I see it as a wave now that’s not going to stop," 

Price said of the building concept. Made of corten steel, the containers are stronger than most materials used to build housing. They are all eight feet wide, making for an adequately spacious living area, and can be stacked in a row or, like Legos, on top of each other. The idea of recycling old materials and living simply is part of the appeal, Price said.  Courtesy: Travis Price Architects Living in one of the sea container apartments doesn't feel much different than a typical modern building, Price said. He says clients can choose to expose some of the corrugated steel to give it an authentic feel, as shown in one of the completed units above, in DC's Brookland neighborhood.  
Travis Price Brookland sea container apartments
The containers are nine feet tall, and Price typically uses floor-to-ceiling windows, which, along with the sea container material, provide enough insulation, he said. Price uses modern industrial materials like birch, maple and mahogany for the interiors. "It’s kind of a genre of modernism to use less to make more," Price said. "In this case, the sea container is pushing that to its very limits already...For retiring people, for Millennials, everybody we have as clients, they’re all hungry for that." Courtesy: Travis Price Architects After building those first Brookland apartments, Price decided to keep using the concept. He is currently in the final planning stages of two more similarly sized sea container projects: a four-unit condo building in Shaw with developer Rob Carter, and another rental project in Brookland with the Hinds family. He expects both projects to break ground in the next two to four months. The concept has drawn so much interest from around the world, Price said, that he spends half of his day fielding phone calls from interested developers. He said he has discussed building larger projects (up to 200 units) and building offices out of sea containers, and he has been approached about using the efficient design for homelessness and refugee camps in Jordan.  StarkJames 
Containers on Grand StarkJames
One Phoenix-based architect that visited Price during construction of the first Brookland project, StarkJames, is building shipping container projects of its own. The firm used 16 shipping containers last year to build an eight-apartment project in downtown Phoenix, Containers on Grand, the first of its kind on the West Coast.  StarkJames partner Kathleen Santin says the firm, which designs and builds its projects, couldn't get traditional financing for the unconventional building style, so it had to use private capital. She said the firm considered it more of a pet project than a real money-making opportunity, but was soon shocked at the reaction. When leasing out Containers on Grand (rendered above) Santin said the waiting list for the eight units grew to more than 200 people.  "The allure of the shipping containers continues to surprise me personally," Santin said. "There is a tremendous amount of interest in it across the board, not just from architects. There is a certain romance to them I can’t put my finger on."   StarkJames StarkJames is working on another sea container project in Phoenix, dubbed The Oscar. 

Read The Full Article Here

Jon Banister/Bisnow

Thursday, December 22, 2016

New hotel tower going up in downtown Dallas

The 12-story hotel will open in early 2018.Equity Hotel Group

A new downtown tower on the way will add to Dallas' growing hotel market.
The 12-story high-rise under construction on Houston Street is the first major addition to the southwest side of downtown since the Omni Hotel was built.
Georgia-based Equity Hotel Group is building the 167-room Courtyard by Marriott on a vacant half block at Houston and Wood streets.
"It's an 18-month project and so far we are right on target," said Equity Hotel Group's Bipin Hira.
The developer has owned the building site for a decade.
The property is right next door to the historic Lawrence Hotel.
Plans for the Courtyard project include a rooftop "sky bar" with both inside and outside seating. There will also be more than 4,000 square feet of meeting space on the top floor.
A separate elevator and entry will access the 12th floor bar.
"The first floor will be the lobby area and arrival court and second third and fourth floors will be the parking," Hira said. "From the fifth to the 11th floors are the rooms."
The 174,000-square-foot building was designed by Winford Lindsay Architect. MW Builders is the general contractor.
The new Courtyard is one of a handful of hotel projects planned in the downtown and area.
Construction is already underway on a 159-room Hilton Curio Hotel in the historic Statler building on Commerce Street.
And an AC by Marriott and Residence Inn are being built in the former Mercantile Commerce tower downtown.
The 237-room Lorenzo Hotel opens early next year on the south side of downtown on Akard Street.
Steve Brown/Dallas Morning News

Downtown Dallas’ landmark post office apartments change hands

Photo published for Downtown Dallas’ landmark post office apartments change hands | Real Estate | Dallas News

A downtown Dallas landmark development has quietly changed owners.
In 2011 the upper four floors of downtown's historic Post Office and United States Court House building at 400 Ervay Street were converted into luxury apartments.
Developer Shawn Todd who created 78 rental homes in the post office said Thursday that he's sold the project to an out-of-state investor.
"It never went to market but we sold it," Todd said. "We are thankful we were able to build the project.
"We were able to preserve the building's architectural heritage."
Along with the apartments, two courtrooms that were used by legendary jurist Sarah T. Hughes and as a tax court have been preserved as public lounge and entertainment areas for the apartment residents.
There's a 20,000-square-foot roof terrace at the building.
The rental units average around 800 square feet.
"We leased the whole building in 90 days," Todd said. "It's been very well leased product from the beginning."
Terms of the apartment sale were not disclosed.
Todd said he's signed a long-term lease to keep his business office in the building.
The U.S. Postal Service continues to use a big chunk of the ground floor as a retail mail outlet.
A model unit of the rental apartments at he  Post Office and U.S. Courthouse on Ervay Street in Dallas. DMN files
A model unit of the rental apartments at he  Post Office and U.S. Courthouse on Ervay Street in Dallas.  
DMN files

Wednesday, December 21, 2016

Law firm Baker McKenzie eyes downtown office move

Baker McKenzie is looking at the new 1900 Pearl tower under construction in the downtown Dallas Arts District.Steve Brown
Baker McKenzie is looking at the new 1900 Pearl tower under construction in the downtown Dallas Arts District. 

Steve Brown
Another one of downtown Dallas' law firms is shopping for new office space and pondering a move.
Baker McKenzie has spent more than a year looking at potential office locations in Uptown and downtown.
The Chicago-based law firm has about 70,000 square feet of space in the Trammell Crow Center skyscraper on Ross Avenue.
Baker McKenzie is shopping office space in the new 1900 Pearl tower which is under construction at the corner of Klyde Warren Park, property brokers say.
The 25-story tower sits next door to the Meyerson Symphony Center in Dallas' Arts District.
Opening in the second half of next year, 1900 Pearl is being built by developer Lincoln Property Co.
Baker McKenzie officials aren't talking yet about their interest in the new downtown high-rise. "We will have no comment at this time," a spokesperson for the firm said in an email.
Commercial real estate firm JLL has been representing the attorney firm in its hunt for office space.
Baker McKenize is just the latest downtown attorney firm that's itching for new office digs.
Akin Gump Strauss Hauer & Feld LLP is negotiating with the developers of the 2-tower Union project in Uptown to relocate its offices to the new complex.
The legacy Dallas legal firm is currently located in the 1700 Pacific tower on the northeast side of downtown.
Downtown law firm Vinson & Elkins is also moving to the $200 million Union project when it opens in 2018.
Gardere Wynne Sewell LLP just relocated its offices to the new McKinney & Olive tower on McKinney Avenue. Sidley Austin LLP is also moving to McKinney & Olive, too.
Steve Brown/Dallas Morning News

Dallas' Turtle Creek Village is up for grabs

One of Dallas' first mixed-use developments just hit the market. Turtle Creek Village is likely to attract a lot of interest from both investors and developers.
Built starting in the early 1970s, the 9-acre retail and office project at Oak Lawn Avenue and Blackburn Street is an anchor for the Oak Lawn community.
The project, just north of Turtle Creek, was purchased three years ago by developer Lincoln Property Co. after the project went into foreclosure.
One of Dallas' first mixed-use developments just hit the market. Turtle Creek Village is likely to attract a lot of interest from both investors and developers.
Built starting in the early 1970s, the 9-acre retail and office project at Oak Lawn Avenue and Blackburn Street is an anchor for the Oak Lawn community.
The project, just north of Turtle Creek, was purchased three years ago by developer Lincoln Property Co. after the project went into foreclosure.
Lincoln tore down a small office building in the complex, built a grocery store and revamped the entire project.
Now, Holliday Fenoglio Fowler LP has been hired to market Turtle Creek Village for sale.
The development includes a 230,000-square-foot office tower and almost 95,000 square feet of retail space just south of Highland Park.
Both the office and the shopping center are more than 90 percent leased. Tenants in the retail strip include Tom Thumb, World Market, Zoe's Kitchen and Athleta.
Steve Brown/Dallas Morning News

Tuesday, December 20, 2016

With $1B in revenue on horizon, Dallas' global tax firm Ryan could go West

Real estate sources say Global tax firm Ryan has a 5-acre tract under contract with plans to build an office tower totaling 30+ floors at the hard corner of the Dallas North Tollway and the Sam Rayburn Tollway, within the $3.2 billion Legacy West corporate magnet.

The land deal is expected to close early next year, sources say. No one knows exactly how much Ryan plans to pay for the land, but it will likely go for a premium, with Toyota North America's corporate headquarters and regional hubs for Liberty Mutual Insurance and JP Morgan Chase within walking distance.
Ryan, who spoke to the Dallas Business Journal in an exclusive interview about the tax firm's growth, declined to comment on the speculation within the real estate community.

The office tower could help house the majority of Ryan's 175 corporate employees and the firm's growing Dallas practice. In all, Ryan has about 450 employees in its Dallas office.

The tax firm has been aggressively growing its business with the company's sights set on reaching $1 billion in revenue by the end of the decade, which will double the company's worldwide operations.

"We have a near term goal to reach $1 billion in revenue by the end of the decade," G. Brint Ryan, founder, chairman and CEO of the Dallas-based tax firm, told the Dallas Business Journal."We have doubled the organization in the last four-year period, so I think this is a reasonable expectation."

That growth pushed Ryan to rapidly expand the firm's footprint within Three Galleria Tower in the last few years to upwards of 150,000 square feet of office space into floors left vacant by FedEx Office, which moved its Dallas headquarters to Plano's Legacy West in 2015.

Before FedEx Office moved to Plano, Ryan was reviewing the company's real estate options with little room left to expand in the Galleria Towers, a three-tower office property totaling 1.4 million square feet at the Galleria Dallas mall.
The corporate employees help support Ryan's 75 locations throughout the world, which includes operations in Singapore, Australia, Brazil, the United Kingdom and many other countries.

Ryan expects to finish the year with annual revenue of nearly $500 million and expects to add employees as the firm's business grows in the future.

Growing market share
Even though Ryan has been buying up other companies (with another undisclosed acquisition occurring about a week ago), this year's organic growth rate has outstripped the firm's M&A activity.

"Taxes are not going away and they are becoming more complex for big organizations that deal with continued pressures from an earnings perspective," said Ryan, who has previously described his firm to me as the tax-consulting equivalent of global management consulting firm McKinsey & Co.
With the global market estimated at $20 billion in U.S. dollars, Ryan, who founded the firm in 1991 after leaving public accounting, said there's plenty of room for the firm to win market share.

"If you look at us right now, we have about a 2 percent market share," he told me. "We can continue to grow aggressively for a long time and I think we can even achieve a 10 percent share, which would be a wonderful outcome for us."
With President-Elect Donald Trump expected to aggressively attack tax reform in the next four years, Ryan said he still believes the tax firm will see benefits moving into the future.

In part, it's because of appointments like billionaire investor Wilbur Ross Jr. and other business geniuses that make the Dallas CEO bullish on the country's future economy, he said.

"We have gone through tax reform initiatives throughout the world and it's almost always been beneficial," Ryan said. "In some cases, it has had some near term loss of opportunity, but in the end it's good for the country and will ultimately grow the revenue base.

"We take the long view, taxes are like death and they will be with us forever," he said. "We might find a cure for death, but not taxes."

Brint Ryan, CEO of Ryan, is pictured in the lobby of Three Galleria in Dallas.

A war plan
Since the departure of FedEx Office, Ryan has been able to expand by two floors or nearly 45,000 square feet within Three Galleria Towers — which has been the firm's home for nearly two decades — to accommodate its growing employment base.

With the completion of the LBJ Express and being centrally located in North Texas at the Dallas North Tollway and the LBJ Express in Dallas, Ryan said it's been an ideal place to grow the tax firm.

"Being part of the Galleria complex and without having to deal the traffic congestion to get downtown helps when we are recruiting people," he told me. "Our employees see being next to the restaurants and shopping as a significant amenity."

Placing a workplace within a center of amenities, such as the Galleria Dallas area, has been important as Ryan — like other major companies — seek to attract talented employees, said Ryan, who also chairs the Board of Regents for the University of North Texas System.

Finding a solution to solving an education system that has fallen behind the rest of the world also will be imperative to businesses moving forward, he said.
The bigger the talent pool of a strong and educated workforce, the better for companies that are currently vying for top talent, he said.

For Ryan, he wants to make sure his employees want to come to work or have the flexibility to be successful.

Monday, December 19, 2016


Angela Mia De La Vega’s bronze and clay Whirlwind by Lot A Apartments depicts two young girls dancing. CityLine in Richardson

KDC has installed five sculptures at its 186-acre mixed-use development in Richardson. Local and national artists unveiled art installations this week at CityLine. Gordon Huether’s Over the Moon at CityLine Plaza was inspired by the the rhyme “Hey Diddle Diddle,” Texas longhorns and the letter C (for CityLine, obviously). Cliff Garten’s Retexo is a bronze sculpture within a fountain in Four CityLine Plaza. 

Timothy Berg and Rebekah Myers’ One of a Kind is a bright green, ceramic rabbit by the DART CityLine/Bush Station inspired by North Texas wildlife. Joseph Havel’s Endless sculpture moved from its previous home at The Contemporary Arts Museum Houston to sit outside the Aloft Hotel. Angela Mia De La Vega’s bronze and clay Whirlwind (pictured) by Lot A Apartments depicts two young girls dancing. 

See Full Article Here

Julia Bunch/Bisnow


Little Towns With Big Appeal: AddisonAddison has managed to fit about 190 restaurants, 10M SF of office, 22 hotels and 15,000 residents into 4.4 square miles. But it didn't happen by chance.

The economic development department of Addison has existed for less than six years and when its director, Orlando Campos, took the inaugural role, office vacancy hovered around 24%. Today, office vacancy stands at 13.2%.  Cawley Partners and USAA delivered Tollway Center on Dallas North Tollway in Q3 with 26% of the 198k SF building left to lease.  

Orlando says the town is working with developers on new office buildings and that while the tenant mix in Addison is diverse, it has seen the most growth in the tech and software sector. Cawley has another project on the Tollway called Fourteen555 that will have two 240k SF, six-story buildings in a campus-like setting with a restaurant and outdoor amenities. The project will break ground in Q1 2017 and deliver in Q3 2018. 

Finance and insurance make up the bulk of the town's employment base with real estate, food services, retail, wholesale trade, transportation and manufacturing decently represented as well. The median household income tops $60k annually, but that doesn't tell the whole story. Addison's population of 15,000 swells to 125,000 during business hours.

Addison provides a central location for both an entry-level workforce commuting from Uptown and a management workforce coming from Plano and Frisco, Orlando (left with Addison Airport deputy director Darci Neuzil and Addison Mayor Todd Meier) says. But as a landlocked city that's less than five square miles, Orlando knows Addison will reach build-out soon. "We're identifying areas that need redevelopment and we've already seen lots of interest in those efforts, like at Addison Grove," he says.

 Fenway Development has submitted development plans for review of a mixed-use redevelopment on Belt Line and Midway roads. At build-out, the 16-acre development will have 178 townhomes, a few live/work units, 330 multifamily units, 20k SF of retail and three public parks.

See Full Article Here

Julia Bunch/Bisnow

Friday, December 16, 2016

Millennials Follow Quality Jobs To Metro

DALLAS—Millennials have shown they are willing to eschew the urban core for the suburbs if the vibe is right, and in addition to job proximity, they are looking for the live, work, play environment that feels authentic.

Common wisdom these days says where there’s an urban core, there will be millennials and Dallas-Fort Worth is no exception. Its downtown is teeming with millennials, at 51% of the immediate population, or more than 67,000, learns.
Millennials are a large and diverse group that cannot be painted with a single brush. In terms of preferred locations, they have shown they are willing to eschew the urban core for the suburbs if the ingredients are right. 
“Most people would tell you that millennials are pretty much tethered to urban cores around the country,” said Walter Bialas, JLL director of research in Dallas. “However, Dallas is a good example of why that is not necessarily the case as we see them spreading out to be near the good jobs and the growing job opportunities.” 
In addition to job proximity, they are looking for that elusive integration of a live, work, play and shop environment that feels authentic. DFW is home to more than 40 of Texas’ 100-plus Fortune 1000 companies. These companies form a corporate infrastructure that helps anchor the region for both large and small companies in the urban core and the suburbs.  So it’s no coincidence that the three largest clusters of millennials are centered around DFW’s concentrations of Fortune companies.
“Many millennials have relocated to DFW primarily for job opportunities, some of which are located in the suburbs,” said JLL managing director Jeff Price. “With so much employment based in dense job centers, we have seen the development of millennial enclaves.” 
For instance, near Las Colinas, a diverse corporate suburb, there are 12 Fortune 1000 companies and a whopping 32,000 millennials, according to JLL’s analysis of age and lifestyle. That compares to the 41,000 Gen-Xers that live in Las Colinas. Likewise in the greater Legacy/Frisco area, there are 23,000 millennials, or 13.1% of that area’s population, and six Fortune 1000 companies.
Lisa Brown/

Cushman & Wakefield makes its move in Uptown to Crescent's 'very sexy' tower

Global brokerage firm Cushman & Wakefield has moved into its new Uptown space at the Crescent's McKinney & Olive office and retail tower near The Ritz-Carlton Hotel.

The real estate brokerage firm set up its Dallas office Monday on the 9th and 10th floor of the $225 million tower, which has been called the "very sexy," buildingfor its shapely design.

"We are excited to have them in the building," John Zogg, managing director of Fort Worth-based Crescent Real Estate Equities LLC, told the Dallas Business Journal.

"Their space looks amazing and they are a great addition to our customer list," Zogg told me. "We have done an enormous amount of business with them and I see that continuing into the future."

The new Uptown office, which totals nearly 41,000 square feet, will give Cushman & Wakefield a high-profile office to grow its North Texas operations in a competitive industry.

The firm — led by market leader Ran Holman — is one of the top real estate brokerage firms in Dallas-Fort Worth.

Cushman & Wakefield was looking for a new Dallas office on the heels of a $2 billion merger between the brokerage firm and DTZ that brought the firm's two Dallas office operations under one entity, which is operating in the United States under the Cushman & Wakefield name.

The firm shopped for real estate in Dallas for a few months before landing at McKinney & Olive in May. The new office will be used to consolidate the two firm's former Dallas offices (at Rosewood Court in Uptown and Sherry Lane Place in Preston Center) under one roof.

At the time of the deal, Holman said, "This type of space located in an energetic, mixed-use environment will benefit us as Cushman & Wakefield continues its expansion in North Texas."

The deal helped bring McKinney & Olive's occupancy rate to 93 percent before developer John Goff recently hosted a grand opening for the building.
Zogg said he expects the remaining office floors in the building — the 2nd and 3rd floor of the 20-story tower — to lease up quickly early next year.

Dallas Takes Down Large Trades

Boosted by strong office and industrial tenant demand, which shows few signs of slowing, Dallas/Fort Worth has captured more than half of the region’s largest trades thus far in 2016, followed by Austin, says the CBRE MarketFlash. According to data from Real Capital Analytics, demand for DFW office product is high and attracting a good deal of buyer attention in the region.
Much like office leasing throughout the region, office sales outlooks are divided. Cap rates throughout the region’s markets saw increases of less than 15 basis points, except Dallas/Fort Worth, which is reported to decline further.
Across the region, retail continues to be one of the strongest product types both in leasing and capital markets. Most Texas metros, including Dallas/Fort Worth, Austin and San Antonio, had notable cap rate compression in stabilized properties throughout the first half of the year, says CBRE.
After several years of strong rent growth and an active construction market, multifamily remains an attractive property type for buyers. The majority of the region’s metros are forecasting stable cap rates through the end of the year.
The weakest commercial property type in the region is hotels, which had cap rate appreciation in almost every market except Dallas, says CBRE. While new supply and market fundamentals are in play, this national trend presented itself across various hotel asset classes.
In preparation for the RealShare Dallas Fort Worth conference on Wednesday, Steve Pumper, executive managing partner of Transwestern and moderator of the “Institutional Investments: A DFW Deep Dive” session gave his perspective on what is driving the demand.
“The pro-business environment in Texas is behind the state’s economic growth,” says Pumper. “With our high-quality labor force, relatively low cost of business and lifestyle, central location, a major international hub in DFW airport and excellent universities located here (Rice, Baylor, Texas A&M, SMU, UT, Texas Tech), talent is drawn to the area from other areas of the country. This creates a wonderful opportunity for millennials and provides the live work play CBD they are seeking. We’ve really evolved based on plans put in place 10 years ago. Our roads are excellent and DART is progressing in the right direction. With this proactivity in recruiting companies to come to Texas and providing incentives to them, this gives a global competition advantage. We have achieved highs on pricing, for example, $400 per square foot at Legacy and $500 per square foot with recent Victory/Uptown acquisitions. Some of that came from international money placing bets on the DFW area. It’s a corporate city with a diversification of industries that bodes well for sustainability and economic growth, as we have the ability to withstand downturns. We’ve evolved over the last five years and some of the regional hubs that have entered Dallas include Toyota, State Farm, Liberty Mutual, JP Morgan (consolidating), Schwab and FedEx.”

See Full Article Here
Lisa Brown/GlobeSt

Developer of historic downtown tower redo plans to sell city subsidies

Developers of another historic building project in downtown Dallas say they plan to sell the city's economic development incentives in a special public offering.
Investor John Kirtland is redeveloping the landmark Tower Petroleum Building on Elm Street and the adjoining Corrigan Tower on Elm Street into a combination of luxury hotel rooms and loft apartments.
Developers of another historic building project in downtown Dallas say they plan to sell the city's economic development incentives in a special public offering.
Investor John Kirtland is redeveloping the landmark Tower Petroleum Building on Elm Street and the adjoining Corrigan Tower on Elm Street into a combination of luxury hotel rooms and loft apartments.
The city of Dallas is supporting the repurposing of the two vacant buildings with almost $20 million in tax increment finance district subsidies.
Kirtland's PetroCorrigan Towers LP plans to sell $20 million in bonds backed by the city's TIF commitment, according to filings with Dallas' Economic Development Committee.
If the deal is approved, it would be the second such large public sale of city incentives pledged for the redevelopment of a downtown project.
Developers who are renovating the historic Statler Hotel downtown sold bonds earlier this year backed by $46.5 million in city TIF subsidies for the project.
"After we heard about the first one with the Statler, we knew it would only be a matter of time until others sought this form of creative financing," said John Crawford of Downtown Dallas Inc. "It provides a unique way of getting more projects over the finish line that does not change the rules in terms of payout and risk for the city and continues to add to the growing tax base and revitalization of downtown."
The public debt offering was made through the State of Wisconsin Public Finance Authority, the agency that plans to issue the bonds for the Tower Petroleum and Corrigan Tower projects.
Sale of the tax-free bonds allows developers to access funds that wouldn't be provided from the city's tax increment finance for years.
Developers also typically sell the historic tax credits for these projects to help finance the renovations.
Dallas' City Council must approve the TIF fund sale.
The TIF subsidies paid from downtown property taxes won't be available to the developer until after the project is completed and are distributed over time.
Earlier this year, Kirtland started construction to convert the 17-story Corrigan Tower at 1900 Pacific Ave. into an apartment community. The 64-year-old high-rise will feature 149 apartments.
Steve Brown/Dallas Morning News

Downtown Dallas tower owner plans 10-story garage

The 10-story garage will be built at St. Paul and Federal streets.Fortis
The 10-story garage will be built at St. Paul and Federal streets.
The owner of a downtown Dallas skyscraper is finalizing plans for a 10-story parking garage.
New York-based Fortis Property Group — which owns the 36-story Harwood Center office tower at Bryan and Harwood streets — is asking for city approval to build the garage to accommodate the new worldwide headquarters for Jacobs Engineering Group.
Jacobs is moving its main office from Pasadena, Calif., to downtown Dallas, adding about 100 new jobs.
Fortis plans to build the almost 500-vehicle garage on Federal Street adjacent to its office high-rise. The office tower at 1999 Bryan was built in 1982.
But first, the city must agree to give the building's owner permission to extend the garage over the city right of way on Federal Street. The real estate investor also wants to purchase a 10-foot easement adjacent to a small public plaza.
"Jacobs' lease is contingent upon providing additional parking, and there are no nearby sites available to provide the needed spaces," Dallas' Economic Development Committee said in a filing. "Without the garage, Jacobs' lease for their corporate headquarters cannot be executed and they will be forced to identify a new location for their office."
Fortis also has said it might lose another major tenant in the Harwood Center, advertising firm Ominicom, if it doesn't build the garage.

See Full Article Here

Steve Brown/Dallas Morning News

With biggest tenant hunting for new DFW office, Irving firm buys Addison tower

With a $55 million merger playing out in the North Texas real estate market, Irving-based Property Advisers Realty Inc. saw an opportunity to take on a new project by acquiring The Madison along the Dallas North Tollway in Addison.

The real estate investment firm acquired the 288,920-square-foot office tower, called The Madison, at 15851 Dallas Parkway in Addison from Plano-based 
Granite Properties for an undisclosed sum.

The 288,920-square-foot office tower sits along the Dallas Parkway in Addison. This is the Irving-based real estate investment firm's third such office building in the immediate area.

"This is our sixth property we have purchased in the last four years and it's our largest," Jerry Reis, president and CEO of Property Advisers Realty, told the Dallas Business Journal.

"We love this submarket and we saw the opportunity the building presents," Reis said, adding he planned to spend "quite a bit of money," upgrading the lobby and common areas of the building.

Reis and his firm also own two other office buildings in the immediate area that are 100 percent leased. He plans to do the same thing with The Madison, he said.
One of the Addison office building's largest tenants — St. Louis-based marketing firm Ansira Partners Inc. — is expected to leave the property next year as it shops for 100,000 square feet of office space following the acquisition of Dallas digital marketing firm SQ1.

The Dallas real estate search could be impacted by a stakeholder change. In November, Boston-based private equity firm buying a majority stake in the company from KRG Capital Partners in a deal expected to close by the end of the year.

Last year, Ansira, a data-driven marketing firm, purchased digital marketing firm SQ1 for roughly $55 million, and, while the company sits in about 44,000 square feet of office space at The Madison, it needs bigger digs to accommodate its new co-workers, say sources familiar with Ansira's real estate search.

Sources also say Ansira has looked at office space in downtown Dallas, but needs a high parking ratio, which can be difficult to find within the central business district.

SQ1 also has a Dallas office nearby at 15950 Dallas Parkway in Addison. The acquisition was SQ1 was one reason why Ansira posted an 8.8 percent increase in revenue in 2015 to $123 million.

When Provident Advisers Realty closed on The Madison on Friday, the building was 84 percent leased, Reis said. With Ansira leaving the building, he said this would open up a big space for a new company.

"When they leave our building occupancy goes home 15 percent, but we'll work around that," he said. "We aren't concerned about it. We love it when tenants roll out, it gives us an opportunity to move rents up."

Reis, Michael Foster and his son, Patrick Reis, of Property Advisers Realty represented themselves in the real estate deal. A JLL team, in conjunction with Evan Stone, represented the seller, Granite Properties, in the deal.

Granite Properties had owned the Dallas Parkway building for a decade and decided to sell it, along with Tollway Towers earlier this year, COO Greg Fullersaid.

"It was time for us to sell," said Fuller, who added he's seen an appetite for any type of property in Dallas-Fort Worth from investors.

"I'm not sure where we are in the cycle, I believe we are late in the cycle and that's not usually the time to find lots of opportunities," he added.

Meanwhile, Irving-based Property Advisers Realty is looking to buy additional properties in North Texas, with plans to make some of its own real estate moves.