Connor Group Sells 301-Unit Apartment Community; Regency Plaza Earns LEED Silver

By Amalia Otet, Associate Editor

Centerville, Ohio-based The Connor Group recently completed the sale of The Reserve at Galleria, a 301-unit rental apartment community in Dallas.

Purchased by FPG Reserve at Galleria L.L.C. for an undisclosed sum, the high-end complex is located at 13907 Montfort Drive and features one-, two- and three-bedroom townhomes with attached garages. Additionally, every townhome includes connections for full-size washers and dryers, designer cabinets with built-in wine racks and stainless steel appliances, walk-in closets, a private balcony or patio, and pre-wiring for intrusion alarms. Amenities include a resort-style pool, complementary tanning and a 24-hour fitness center.

Prompted by a rebounding multi-housing industry and a strong seller’s market, the company has sold off seven apartment communities since December according to the Dayton Business Journal.

Founded in 1991, The Connor Group owns and operates more than $1.5 billion in assets, with more than 16,000 units in Atlanta, Austin, Charlotte, Cincinnati, Columbus, Dallas, Dayton and Raleigh-Durham. The company has a solid foundation in Texas, operating in the Dallas-Fort Worth Metroplex since 2008.

In other commercial news, Citybizlist reports that Regency Plaza, a 16-story multi-tenant office building in Uptown Dallas, has achieved LEED Silver certification through the U.S. Green Building Council’s LEED® for Existing Buildings program.

Located at 3710 Rawlins St., Regency Plaza is Gaedeke Group L.L.C.’s headquarters building and features 165,843 square feet.

The property had already earned ENERGY STAR® certification from the U.S. Environmental Protection Agency; this new award comes as further recognition of Gaedeke’s longstanding commitment to sustainability.

Regency Plaza’s LEED team included Blaine Morris, director of engineering, and Quest Sustainability Solutions of Frisco, Texas. The certification was based on a number of green design and construction initiatives, including energy efficiency, architecture, recycling programs, tenant load and tenant type. The building earned exemplary performance points in the “Innovation” category for a solid waste management program for durable goods.

Image of The Reserve at Galleria via the property’s official Web site.

Regency Plaza photo credits: gaedeke.com

KPMG to Anchor Craig Hall’s Arts Project in Downtown Dallas

By Amalia Otet, Associate Editor

The Arts District will become the new Dallas home for KPMG L.L.P., the U.S. audit, tax and advisory firm, which signed a long-term lease with Hall Financial Group to occupy space in the much-awaited Hall Arts tower.

KPMG plans to relocate its Dallas office to 2323 Ross Ave. as the anchor tenant of the development’s first building, leasing more than one-third of a 450,000-square-foot office block.

“I cannot think of a better way to mark 100 years of KPMG’s presence in Dallas than with a new office space in the Arts District that renews our commitment to this flourishing area of Downtown Dallas,” Manny Fernandez, KPMG’s managing partner in Dallas, said in a release. “I am confident that our new location in this vibrant neighborhood will help us create a highly desirable work environment and retain and attract the talented individuals who are the cornerstone of our firm’s continued success.”

The developer plans to kick off construction of the 16-story, Class triple-A office building in September 2013, with a completion date set for March 2015.

Designed by Eddie Abeyta, principal with HKS Inc., the mixed-use development will include two office and residential towers rising above a detailed state-of-the-art glass podium. Turner Construction will serve as the base building general contractor.

Fully committed to protecting the environment, Hall Financial Group has taken the necessary steps to have the new building pre-certified LEED Gold, a designation granted by the U.S. Green Building Council based upon the environmental standards incorporated in the overall structure. Similarly, KPMG plans to incorporate sustainable practices and materials in the outfitting of its new office, into which it plans to relocate in summer 2015.

In other development news, the Dallas Business Journal reports that KDC, one of America’s leading commercial real estate and investment companies, has broken ground on a $1.5 billion master-planned project in Richardson. To be located near the intersection of President George Bush Turnpike and the North Central Expressway (U.S. 75), the 186-acre mixed-use development will incorporate build-to-suit office buildings, an integrated healthcare facility, 3,925 multi-family residential units, hotels, retail and restaurants.

Image courtesy of HKS

Schuler Development Plans High-End Community in Denison

By Amalia Otet, Associate Editor

An important milestone has been achieved in the progress of Preston Harbour, a 3,000-acre mixed-use development planned for Denison, approximately one hour north of the Dallas-Fort Worth metroplex.

In a highly anticipated move that sees Preston Harbour one step closer to fruition, the United States Army Corps of Engineers transferred 600 acres of federally owned lakeside property on Lake Texoma to the city of Denison.

The city and the developer, Schuler Development, inked the deal after more than 12 years of planning, debating and organizing. The affair required close collaboration between county, state and federal officials, including a thorough environmental impact study, which culminated in the approval of the Water Resources Development Act of 2007, authorizing the Secretary of the Army to convey the property to the city of Denison.

“This is one of the most significant events in Denison’s history, and it will shape our future. It has been a complicated process. It literally took an act of Congress to make this project a reality,” said Mayor Jared Johnson in a statement. “Denison has been blessed in the last few years with a new hospital, new school facilities, expanding industries, and now we have this development that will bring hundreds of millions of dollars in new investment and job opportunities for our citizens.”

The massive development is expected to have a major impact on the local economy, resulting in a $1.9 billion investment in the city.

Working directly with a multidisciplinary design team – including planners, architects, designers and coding experts – Schuler Development will now be able to focus on delivering the final vision for Preston Harbour.

To be located along nine miles of the Lake Texoma shoreline on the east side of the Little Mineral Arm, the premier project will include several housing developments, a host of waterfront amenities, high-end retail and a golf course, all complemented by dramatic cliffs and panoramic lake views.

Image courtesy of Denison Development Alliance

Long-Empty 1600 Pacific Tower May Be Redeveloped

By Camelia Bulea, Associate Editor

1600 Pacific Tower in downtown Dallas, a 33-story skyscraper that has been empty for years, could change hands this summer. Current owner Ricchi Dallas Investments is expected to sell the partially renovated property to New Orleans-based HRI Properties, which is considered to be one of the most experienced historic building renovators in the country.

According to the Dallas Business Journal, the Downtown Connection TIF Board is expected to vote on an  amendment that would replace the old owner with the new one — 1600 Pacific Landlord L.L.C., a limited liability company affiliated with HRI Properties. The amendment will reallocate $17.5 million for the redevelopment of 1600 Pacific LTV Tower. If the board approves it, the amendment will need city council approval, as well.

In 2009, Leobardo Trevino, owner of Ricchi Investments, bought the high-rise with plans to redevelop it into a hotel-condo complex scheduled that was to include a restaurant, retail space and offices, according to The Dallas Morning News. BOKA Powell was the project architect. Although the developer prepared the building for redevelopment and the project got the support of the city council, it remains empty three years later.

“Adaptive reuse projects are complex, expensive and require significant city support. They also require strong and experienced private-sector development partners. HRI meets all these criteria, and we are very comfortable recommending this deal to the TIF board and city council,” Karl Zavitkovsky, head of the city’s Office of Economic Development, told The Dallas Morning News.

Photo credits: www.dallasarchitecture.info

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Victory Healthcare to Build $51M Hospital in Fort Worth

By Camelia Bulea, Associate Editor

Victory Healthcare recently announced it would build a hospital in Fort Worth, at the corner of South Main Street and Pennsylvania Avenue. Sitting on a 6.5-acre site, the $51 million medical center will include an 85,000-square-foot medical facility and 50,000-square-foot medical office building.

Victory Medical Center Fort Worth is planned to include 25 patient beds, including five suites with private family quarters, and four state-of-the-art intensive care rooms, eight operating rooms and four special procedure rooms.

According to an official statement, The Woodlands-based Victory Healthcare will have an important role in the revitalization of South Main, serving as anchor in the commercial development effort. “We take seriously the honor of being part of the rebirth of South Main, and it will be reflected throughout the design of the building,” said CEO Robert Helms Jr.

The architect designed the facility to reflect Fort Worth’s heritage, integrating a replica of the St. Joseph’s Hospital tower in the façade while the entire design of the facility features architectural elements typical of Fort Worth’s architecture from the 1910s.

The new Fort Worth hospital will provide a superior level of personalized care, including specialty procedures such as spinal and orthopedic surgery in addition to general surgery; gynecology; urology; bariatrics; and ear, nose and throat procedures, as well as pain management. Scheduled to open in May 2014, the hospital will employ 140 people, not counting those that will work in the medical office building, reports the Dallas Business Journal.

Linbeck Construction Corp. is the facility’s general contractor.

Photo credits: PRWeb

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Hall Financial Breaks Ground on 200,000-SF Office Building in Frisco

By Camelia Bulea, Associate Editor

With multi-tenant office space in high demand in Frisco, Hall Financial Group recently broken ground on the 16^th office building in Hall Office Park. The 200,000-square-foot Class AA office building will be built on one of the two remaining development sites in the 162-acre office park.

The speculative office building will be eight stories high and is expected to be completed in the second quarter of 2014, noted the Dallas Business Journal. Dubbed 3001 Dallas Parkway, the property will contain efficient and flexible 25,000-square-foot floor plates and is designed to achieve LEED certification, according to an official statement.

“With existing demand for new multi-tenant office space in the area outpacing availability, we believe the timing is right to start this next building,” said Craig Hall, chairman & founder of Hall Financial Group.

The award-winning office park already has 15 buildings totaling more than 2 million square feet of space. The existing buildings are currently 98 percent occupied; among the tenants are names like Fiserv, AmerisourceBergen Specialty Group, The Hartford, SANYO Energy (U.S.A.) Corporation, MillerCoors and GENBAND. HKS Architects designed the 3001 Dallas Parkway, while JPMorgan Chase is providing financing for the new facility. The number of people working in Hall Office Park is as high as 6,500 employees.

Photo of 3001 Dallas Parkway, courtesy of Boyer Group

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Adriatica Village Apartment Community in McKinney Receives $25M Loan

By Camelia Bulea, Associate Editor

Condos under construction

Developers plan to break ground on a new 211-unit apartment community in Adriatica Village, a European-inspired mixed-use town center development in McKinney, after having received $24.9 million for construction work.

Dubbed St. Paul Square, the apartment community is expected to be completed by late summer 2014, according to the Dallas Business Journal. The $24.9 million loan was arranged by Washington, D.C.-based Love Funding. According to an official statement by the company, the loan for the Class A multifamily project was secured through the U.S. Department of Housing and Urban Development’s loan insurance program for new construction projects.

Ranging from 700 square feet up to 1,600 square feet, the available homes will include one-, two- and three-bedroom luxury units, according to the Adriatica Village Web site.

The 45-acre Adriatica Village will also feature single-family homes and condominiums, retail stores, restaurants, medical offices, as well as a weekly farmer’s market near the center’s bell tower. The unique project is being modeled after Supetar, a fishing village located on Croatia’s coast, featuring many elements from the old European architecture, according to Love Funding.

Initially conceived by Jeff Blackard, the town center project is now being led by developers David Brooks and George Fuller, the Dallas publication noted.

Photos courtesy of Adriatica McKinney, Texas Online

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Forest Park Medical Center Starts Construction on $140M Physician-Owned Hospital

By Camelia Bulea, Associate Editor

Forest Park Medical Center has started construction on its fourth hospital in the Metroplex, a 150,000-square-foot facility that is being built in southwest Fort Worth. The $140 million medical center will sit on an eight-acre site in the Edwards Ranch development.

The developer of the three-story project is Neal Richards Group. According to its Web site, the new center will include 12 operating rooms, two procedure rooms, 44 private patient beds, 10 ICU beds, full ancillary services and structured parking. The developer is targeting LEED Silver certification for this Class A surgical specialty hospital, which will also feature outdoor spaces, vegetated roof systems and an outdoor reflection pond.

With construction already started, completion is expected to happen by mid-2014, the Fort Worth Star-Telegram reports. When open, the hospital will employ about 300 people. Perkins & Will is the architect, while Balfour Beatty Construction serves as the general contractor.

The project is being financed with $30 million in private equity, Dr. J. Robert Wyatt, one of four founders of Forest Park Medical Center, told the Fort Worth publication. The remainder will be provided by a consortium of banks led by Texas Capital Bank.

Forest Park Medical Center also has under construction a hospital in San Antonio, which will open about the same time as the Fort Worth location. The company also operates locations in Dallas and Frisco, and will soon open a third one in Southlake.

Photo rendering of the Forest Park Medical Center at Fort Worth courtesy of Neal Richards Group.

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HFF Brokers 1.7 MSF Industrial Portfolio

By Camelia Bulea, Associate Editor

Irving-based Cobalt Capital Partners has placed a large industrial portfolio on the market — specifically, 15 distribution properties totaling 1.7 million square feet.

Holliday Fenoglio Fowler L.P, is marketing the portfolio, located in infill submarkets including DFW Airport, Northwest Dallas, Northeast Dallas and Inner Southwest Dallas. In an official statement, HFF reported that it expects the portfolio to attract bids of about $78 million, or $47 per square foot. Most of these buildings were completed in the 1980s.

Currently 95 percent leased, the 15 industrial properties are occupied by 31 tenants, with an average remaining lease term of nearly six years, according to HFF. Occupants specialize in a wide range of industries, among them, food products, aviation, paper distribution, construction material, corrugated cardboard, apparel and automotive.

Cobalt Capital Partners entities own more than 31 million square feet of light industrial space in 18 major metropolitan markets.

The Dallas-Fort Worth area has been attracting a large number of industrial investors in recent months, which could be a big reason for placing such a large portfolio on the market. According to a report from CBRE Group Inc., the end of the fourth quarter of 2012 marked the second full year and nine consecutive months of positive absorption for DFW industrial inventory as market fundamentals continue to improve.

As illustrated in the chart at left, positive absorption of 3.4 million square feet brought the year-to-date total to 14 million square feet, making it the highest annual net absorption recorded in DFW since 2007.

Photo credits: Cobalt Capital Partners

Chart credits: CBRE Global Research and Consulting

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Harwood to Bring High-End Residential, Retail to Design District

By Camelia Bulea, Associate Editor

Harwood International will soon break ground on a majdeor development at Oak Lawn Avenue and Dragon Street, in the growing Design District neighborhood. The Dallas-based developer plans to build a high-end project that will feature 46,000 square feet of restaurant and shopping space on the ground level, with 224 apartments on top.

Dubbed District 1444: The Design Village, the urban-style development will be built on a site that currently houses an old showroom building. The west side of the showroom complex will be demolished to make way for the new buildings, while the rest of the old building will be used for a second phase, reported The Dallas Morning News.

The five-story project will also feature a pool deck lounge with cabanas, a fitness center, a game room, fire pits and gardens. Residents will be able to enjoy a wide array of cafes and restaurants on the ground floor, according to the Dallas Business Journal.

The northwest area of downtown Dallas has been attracting a large number of developers in the past six years, due to the high demand for rental units. One of the most famous residential projects in the Dallas Design District is 1400 Hi Line, a 24-story tower featuring 314 luxury apartments. The glass tower project opened half leased in the summer of 2012, as reported by Multi-Housing News.

One of the big players in the booming Uptown market, Harwood International also built the 31-story, 156-unit Azure condo tower, considered to be the tallest condominium residence tower in Uptown.

Rendering of the District 1444: The Design Village, via Harwood International

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New York Investor Snaps Up 124040 Park Central

By Camelia Bulea, Associate Editor

12404 Park Central, a 239,000-square-foot office building near North Central Expressway and LBJ Freeway, was recently purchased by Red River Asset Management L.L.C., a New York-based investor.

The four-story property was sold by Oaktree Capital for $15.4 million. Red River financed the property with a loan from American National Insurance Co.

Built in 1987 as the headquarters for Steak and Ale, the Park Central building was 89 percent leased at the time of the sale. Its tenant list includes brands like Greatwide Logistics, Mercer HR Services and MEplusYOU, a company that extended its 74,000-square-foot lease through 2020.

The new owner plans to spend big to renovate the building’s atrium. New plans include a 3,000-gallon fresh-water aquarium with tropical fish and a four-story-tall plant wall. Red River will use Dallas-based Merriman Associates Architects to design the atrium project, according to the Dallas Business Journal.

In November 2012, the investor also bought a five-building office complex in Irving, according to the Dallas Business Journal. Imperial Square, a 129,000-square-foot office property, was 68 percent leased at the time of the sale.

“We like deals that have hair on them, or something the large institutional players won’t go for that usually takes more effort to understand,” said Bruce Stern, a Red River principal told the Dallas publication. He added that his company is interested in buying more property in North Texas.

Photo of the 12404 Park Central office building courtesy of Red River Asset Management.

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Developer Breaks Ground on Second Phase of 90-Acre Lewisville M-F Community

By Camelia Bulea, Associate Editor

Huffines Communities, the developer of the Hebron 121 Station multifamily community in Lewisville, announced it had broken ground on Phase II of the 90-acre project. The company also provided a completion date for this phase: late summer of 2014.

According to a press release by Huffines, this phase will add 444 one-and two-bedroom units, a resort pool complex, a 14,000-square-foot clubhouse, additional open village greens and an expansion of the existing lakefront boardwalk. The architecture of the luxury apartment project is influenced by the style of coastal U.S. resorts and the West Indies.

The project will have additional phases and is expected to be complete in 2018. The full Hebron 121 Station development will include about 1,700 apartment rental units and TOD-related commercial and retail space based on demand. “Hebron 121 Station is designed as a socially vibrant community, and we believe this development offers upscale renters a lifestyle and convenience they can’t find anywhere else in the Metroplex,” said Phillip Huffines, co-owner of Huffines Communities.

Amenities will feature lakeside trails along Timber Creek Lake, lushly landscaped parks, a boardwalk, paddle boats in the channel and other recreational venues that are rarely seen in urban locations.

Phase I of the project, which was established in 2010, included 234 rental apartments, which are currently 98 percent occupied.

The mixed-use urban development is conveniently located on the A line of the Denton County Transportation Authority commuter line, offering residents the possibility to commute from downtown Dallas to Denton along the Green Line.

Photo credits: Hebron 121 Station

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New Luxury Apartment Tower Planned Near American Airlines Center

By Camelia Bulea, Associate Editor

Trammell Crow Residential announced plans to build a luxury apartment project near American Airlines Center. The high-rise would include 365 apartment units within a 12-story residential tower and a five-story building.

The two-building property, called The Alexan, will also include a 5,000-square-foot restaurant on the ground floor of the tower, according to the Dallas Business Journal. The Dallas-based developer also plans to build a 616-parking-space underground garage for residents.

The architect of the luxury project, Good Fulton & Farrell, projected a waterfall-inspired property. “We’ll have a flowing waterfall behind the sign and incorporate it into our pool area and courtyards,” the Dallas publication quoted Steve Bancroft, senior managing director of Trammell Crow Residential, as saying.

TCR plans call for a completion date by June 2015, with the first apartments scheduled to be ready in the third quarter of 2014. Monthly rents will start at $1,300 and will reach to more than $4,500 for a penthouse.

Back in November, TCR also announced it would build a 200-unit apartment community in Oak Cliff, on the banks of the Trinity River. The project is expected to break ground in February 2013 and is reported to cost about $19 million. Read more about the four-story apartment project in Multi-Housing News.

According to a Marcus & Millichap report on the multifamily market in the Dallas-Fort Worth area, 9,600 of the 15,000 units under construction list a 2013 delivery date, which will stem vacancy reductions this year, and the pipeline has grown to include roughly 35,000 planned and proposed apartments. Moreover, in 2012, growth in asking rents reached 3.4 percent, pushing the average throughout the Metroplex to $823 per month, as illustrated in the chart at left.

Photo of the Alexan Deer Park Apartments property, developed by Trammell Crow Residential in Deer Park, Texas.

Charts courtesy of Marcus & Millichap Research Services.

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KBS Expands DFW portfolio with 19-Story Las Colinas Office Tower

By Camelia Bulea, Associate Editor

KBS Real Estate Investment Trust III started the year with a new acquisition in the Dallas-Fort Worth Metroplex: the 364,366-square-foot Tower on Lake Carolyn building in the Las Colinas submarket, one of the fastest-growing communities in the DFW area.

The 19-story office property, located in the heart of Las Colinas’ Urban Center, was 83 percent leased at the time of the sale, according to a company news release. Currently occupied by 42 tenants, the Class A building was completed in 1988 and later underwent capital improvements valued at $8 million. The property is LEED certified.

“We love operating top-tier properties in promising locations like the Las Colinas Urban Center,” said Ken Robertson, senior vice president & asset manager for KBS Realty Advisors. Factors that made the property attractive to KBS, Robertson said, included improved highway access, housing development, completion of the Dallas Area Rapid Transit (DART) line connecting it to Dallas-Fort Worth International Airport and new retail amenities.

With the acquisition of the Tower on Lake Carolyn, KBS-affiliated companies now own 11 properties in the Metroplex, totaling more than 3.3 million rentable square feet.

According to Marcus & Millichap, office transaction velocity in the area rose alongside prices and investor demand in 2012. Well-located, performing Class A buildings traded at prices above $175 per square foot, while single-tenant assets leased to high-credit tenants, such as government agencies, changed hands for more than $300 per square foot.

Photo rendering of the Tower on Lake Carolyn property courtesy of KBS Realty Advisors.

Chart courtesy of Marcus & Millichap Research Services.

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JV to Develop $35M Apartment Community North of Dallas

By Camelia Bulea, Associate Editor

Global Growth Trust has formed a joint venture with Hunt Realty Investments and Trinsic Residential Group to develop a Class A apartment community in Lewisville, about 25 miles north of downtown Dallas.

Known as Aura Castle Hills, the $34.9 million garden-style community will include 316 apartment units with one-, two- and three-bedroom floor plans. The developer also announced that the new apartment project will be built on a site that is part of Castle Hills, a 2,500-acre master-planned community that was named “Community of the Year” in 2011 by the Dallas Homebuilders Association.

Aura Castle Hill is located about five miles from the Dallas North Tollway and I-35, providing residents with easy access to large employment areas, retail centers and entertainment venues.

The community will feature a clubhouse, business center, fitness center, dog park, resort-style swimming pool and attached and detached garages, according to a statement from Global Growth Trust, which owns a 56 percent interest in the joint venture.

The company has been a very active developer in the last 12 months, having invested about $135.5 million in four multifamily developments, according to a news release. The other three projects are:

• Woodfield Long Point – a 258-unit project in Mount Pleasant, near Charleston;
• Circle Crosstown – a 344-unit multifamily project in Tampa;
• Circle Alexander Village – a 320-unit Class A garden-style community in Charlotte, N.C.

Dallas-based Trinsic Residential Group will serve as the project’s developer and general contractor.

Artist rendering of proposed development courtesy of Global Growth Trust.

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TDI to Build $50M Apartment Project in Las Colinas

By Camelia Bulea, Associate Editor

Irving-based TDI announced plans to build a $50 million apartment complex in Las Colinas.

Construction on the 386-unit building, known as Aston at Las Colinas, is expected to begin in March 2013, the company announced in a news release. The developer recently purchased 6.7 acres of land at Northwest Highway and Las Colinas Boulevard, which will serve as the construction site for the six-story residential tower.

The design will feature urban connectivity between the streetscape and community, “offering residents access to five serene landscaped courtyards, as well as an active courtyard with a resort style pool,” said Brad Taylor, executive vice president & investment partner for TDI.

The developer chose the Las Colinas submarket due to its high occupancy rate, at 96 percent. “More than 100,000 people work in Las Colinas,” noted Taylor.

TDI has been a very active developer, with 1,406 units under construction in Texas, California and Arizona. The company plans to develop an additional 2,320 units over the next 12 months.

Meanwhile, Las Colinas will also be home to a speculative 135,000-square-foot office building to be developed by Dallas-based Wilcox Development. According to the Dallas Business Journal, the four-story building will be located at the southeast corner of LBJ Freeway and Beltline Road, with access to Dallas-Fort Worth International Airport and major freeways.

Dubbed The Wilcox Plaza at Las Colinas, the office project is expected to be ready for occupancy in the second quarter of 2014. The building has been designed by Morrison Dilworth + Wall to qualify for LEED certification.

Photo rendering of the Aston at Las Colinas, via Dallas Business Journal

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Joint Venture Recapitalizes 706,000-SF Watters Creek

By Camelia Bulea, Associate Editor

A joint venture of Trademark Property Co., Coventry Real Estate Advisors, Southern Land Co. and PCCP have recapitalized Watters Creek, a 706,000-square-foot mixed-use project in Allen. The joint venture acquired the note from a multibank syndicate led by PNC Bank.

According to Brian Moss, principal of Coventry Real Estate, the recapitalization offered the opportunity “to purchase the existing loan at a discount and to provide additional capital for future improvements,” according to Citybizlist.com.

Developed by Trademark, Coventry and Southern Land, the Class A project features 100,000 square feet of office, 356,000 square feet of retail and the 233-unit Lofts at Watters Creek apartments.

The recapitalization will allow developers to make some improvements to the property, like adding a build-to-suit office, possibly a hotel, a children’s play area and new shade structures, according to the Dallas Business Journal. The Dallas Morning News adds that the project could also include additional multi-family units on its southern end.

Meanwhile, a private real estate investment company based in Oklahoma City has purchased Northcrest Village, a 136,267-square-foot shopping center in Carrollton. The new owner, Zerby Interests, added the retail property to its portfolio with plans to stabilize it through co-tenancy.

Zerby bought the property from Miami-based LNR Partners L.L.C., which was represented in the deal by the CBRE Dallas Retail Private Capital Group team of Jennifer and Beth Pierson.

Developed in the 1980s, the shopping center is anchored by ALDI Grocery, Taco Bell, KFC, Starbucks, Subway and Allstate Insurance Co.

Photo rendering of The Lofts at Watters Creek courtesy of Watters Creek at Montgomery Farm.

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Investor Buys Meridian Tower, Picks Stream Realty for Leasing and Management

By Camelia Bulea, Associate Editor

The Meridian Tower, a 228,500-square-foot Class A office building off the LBJ Freeway, was recently purchased by a private investment group. 2711 LBJ Partners, a subsidiary of DFW Integrity Group Ltd., plans to upgrade the office building with the addition of modern office suites and tenant conference rooms, as well as providing enhancements to the common areas. The building was developed in 1984.

Kendall Cramer of Dallas-based Stream Realty believes that the new upgrades will boost the building’s occupancy rate. Stream was recently tapped to lease and manage the tower, reports Citybizlist.com.

According to the Dallas Business Journal, the building is currently 29 percent leased and the new owner plans to offer space at aggressive rental rates.

Meanwhile, Boxer Property acquired two office buildings in Dallas totaling more than 300,000 square feet. The new acquisition increases the company’s portfolio in the Dallas-Fort Worth area to 700,000 square feet of office space purchased this year alone, noted the Dallas Business Journal.

The Houston-based company bought Bank of America Tower – a 13-story, 225,445-square-foot office tower in Plano – and Rochelle Park, a three-story, 80,148-square-foot office building in Las Colinas. The two buildings, sold by Parmenter Realty Partners, have an occupancy rate of 80 percent.

The company had a strong year. It currently owns more than 3 million square feet of property throughout the country. Last January, it purchased the Carillon Towers office buildings in Dallas – 11- and 10-story structures totaling 261,000 square feet.

Photo rendering of Bank of America Tower courtesy of www.bankofamericatowerplano.com

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$1B Residential Development Breaks Ground in Denton County

By Camelia Bulea, Associate Editor

Hillwood Communities has broken ground on a 1,000-acre master-planned development located just north of Alliance Texas. Dubbed Harvest, the $1 billion mixed-use community is planned to include approximately 3,000 single-family homes with prices ranging from $200,000 to about $400,000.

The initial phase of this huge development will include 323 homes centered on a core of amenities like pools, an amphitheater and a community farm, as well as the 12-acre Harvest Lake, according to a statement by Hillwood Communities. The developer partnered with Atmos, Verizon, Coserv, Environments for Living and Premier Communities to deliver the LiveSmart design, a concept based on principles like a sense of community; technology; healthy living; environmental stewardship; and education and enrichment.

The goal is a long-lasting, livable, walkable community designed to meet the needs of its residents while protecting and enhancing the site’s rural character, Fred Balda, president of Hillwood Communities, told the Dallas Business Journal. And in an official statement commented Ross Perot Jr., chairman of Hillwood, said, “Our vision is to bring people together and cultivate an appreciation for the land as well as foster an active, caring environment where urban farmers, gardeners and farm-to-table entrepreneurs can thrive.”

David Weekley Homes, Highland Homes and Plantation Homes have already been confirmed as builders. Dallas-based Hillwood Communities is also the developer of Alliance Texas, a 17,000-acre master-planned, mixed-use community located in north Fort Worth. Additionally, the developer is known for the $420 million American Airlines Center near downtown Dallas.

Photo rendering of Faught Family Farm House, which will be restored for use as a community center, courtesy of Hillwood Communities.

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$35M Hotel-Conference Project Moves Ahead at Gateway Site

By Camelia Bulea, Associate Editor

McKinney’s new Gateway Hotel and Conference Center project is moving forward. The city council recently signed an agreement with The Beck Group and Champ Hospitality to build a three-and-a-half star, 186-room hotel and 20,000-square-foot event space on the Gateway site.

The project is expected to cost between $35 million and $38 million, with a public incentive to range between $18 million and $20.25 million, according to a news release by the city of McKinney.

The agreement states that the city, through McKinney Community Development Corp., will retain ownership of the land and own the event center. The Beck Group and Champ Hospitality will own the hotel.

The hospitality project has stood partially completed since 2008, when it was abandoned due to a two-year dispute with the former developer of a hotel/events center and retail complex on the property. Construction on the new project is expected to begin in early 2013, with an estimated completion date of December 2014, according to NBCDFW.com.

The Gateway site is a 90-acre tract of city-owned land that McKinney seeks to develop into business, retail, educational and hospitality property. About 65 acres of the 90-acre tract remain open for development.

Collin College was the first occupant at Gateway, opening its Higher Education Center in January 2010. Emerson Process Management is building a $25 million, 130,000-square-foot headquarters facility for its Regulator Technologies division on a 10-acre site at the northwest corner of the development. The project is expected to be complete by late 2013.

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