Tuesday, March 14, 2017

JP Morgan Chase to bring $135M corporate magnet to downtown Dallas

The ownership behind Trammell Crow Center has unveiled plans to invest $135 million in renovating and expanding the iconic tower and build an adjacent ground-up development that will act as a corporate magnet in the city's central business district.

This is the first major renovation to the 32-year-old tower — one of the tallest skyscrapers in downtown Dallas — since it was built by legendary developer Trammell Crow.

J.P. Morgan Asset Management, which advises several institutional investors owning the tower, and Dallas-based Stream Realty Partners unveiled its renovation and development plans at the Nasher Sculpture Center on Wednesday night.

"This substantial investment in Trammell Crow Center underscores our commitment to Dallas-Fort Worth, where our North Texas portfolio includes $4.8 billion in assets comprising more than 30 million square feet," said Dale Todd, executive director of J.P. Morgan Asset Management, in a statement.

"We are one of the largest property owners in Dallas' prime urban office market and believe that Ross Avenue's best days lie ahead," he added.

J.P. Morgan Asset Management owns Trammell Crow Center at 2001 Ross Avenue and the adjacent 2.66-acre development site. Plans for the project include re-facing the exterior of the 50-story, 1.2 million-square-foot office tower with an updated lobby, two added restaurants and completely redone entrances to the building.

The adjacent mixed-use development, upon build-out, will include a 400-unit high-rise residential tower, a 200-key boutique hotel, a 2,000-space parking garage and 26,000 square feet of retail space that could accommodate upwards of eight restaurant sites. The parking garage and retail are part of the initial phase of the project.

The hotel — an undisclosed flag has already been selected — is expected to get underway in 2018 upon completion of the initial phase. The high-rise residential tower will get started following the hotel.

"When you look at why Legacy is so successful and why CityLine makes so much sense for State Farm, it's all the same factors: They want amenities for their employees, they want retail, they want hospitality and they want housing in a mixed-use environment," Ramsey March, managing director of Stream Realty, told the Dallas Business Journal.

"We believe we can create this on Ross Avenue," added March, who is leading the development team with Stream Realty's Jerry MaysScott Sowanick and Steve Riordan.

The reimagined Trammell Crow Center and its adjacent mixed-use development will help add connectivity to the city and this part of Ross Avenue, said Kourtny Garrett, president and CEO of Downtown Dallas Inc., an advocacy group for the city's central business district.

Construction on the initial phase of the development is slated to get underway by the end of the month. The initial phase on the mixed-use development includes the parking garage and retail space. Dallas-based HKS is the master architect. The parking garage will bring the tower's parking ratio to three spaces per 1,000 square feet.

HOK is the architect on the upgrades to Trammell Crow Center. The firm was selected from a 19-company search throughout the globe.
The tower's upgrades include:
  • A new 3,000-square-foot tenant lounge
  • An expanded 9,000-square-foot athletic club
  • A 9,000-square-foot conference center on the second floor
Stream Realty's March, Sara Terry and Sowanick will continue to lease Trammell Crow Center, which has options for offices ranging from 1,800 square feet to 260,000 square feet. Currently, the building is 92 percent leased.

By adding restaurants to this part of the city, it will help exceed tenant expectations in terms of amenities, said Terry, a vice president at Stream Realty.

“Restaurants in this part of the city are particularly scarce despite more than 16,000 office workers within walking distance and we will meet that need,” she said.

Candace Carlisle/Dallas Business Journal.