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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