$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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Trammel Crow to build $19M apartment community in Oak Cliff

By Camelia Bulea, Associate Editor

Trammel Crow Residential announced it would build a 200-unit apartment community in Oak Cliff next year. The four-story apartment project will sit on about three acres of land, on the banks of the Trinity River and is reported to cost $19.1 million.

According to the Dallas Morning News, the city of Dallas’ office of economic development will subsidize the project with $4 million from the neighborhood tax increment finance district. The residential project is expected to break ground in February 2013 with completion planned for June 2014, adds the Dallas publication.

Combining apartments and rental townhouses, the Alexan Trinity Development will have 166 rental units, with rents ranging between $965 and $2,210 on a monthly basis, and 34 units that will meet the district’s affordable housing requirements, with rents between $880 and $927 per month. Alexan Trinity will add additional market rate housing options within walking distance of Methodist Medical Center and within 5 minutes of downtown.

The Oak Cliff project will be the developer’s fifth recent apartment project in the Dallas area. Crow Residential is currently building in Las Colinas, off Inwood Road in the Medical District and near Maple Avenue in Oak Lawn. Additionaly, the company plans to build apartments on the Goat Hill property, just north of downtown Dallas.

The City of Dallas plans to spend circa $36 million on the Oak Cliff Gateway, along with this residential project. According to the Dallas Business Journal, the money will be spent on public infrastructure, facade improvements, environmental remediation, pedestrian linkages and lighting, educational and training facilities, and economic development grants.

Photo courtesy of Office of Economic Development, Dallas

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CBRE Buys Tollway Plaza Office Complex in Far North Dallas

By Camelia Bulea, Associate Editor

CBRE Global Investors has purchased Tollway Plaza I & II, two office buildings in Far North Dallas totaling 369,000 square feet of space. News of negotiations between the California fund and Chicago-based Equity Office Properties Trust emerged back in September; two months, later the purchase is complete.

Although terms of the sale were not disclosed, analysts agree on that the properties could not have been sold for more than $175 per square foot, according to The Dallas Morning News. Built in the late 1990s, the Tollway Plaza buildings are currently more than 90 percent leased. Among their major tenants are companies like Sun Microsystems Inc., Travis Wolff L.L.P., Stewart Title North Texas Inc. and HQ Global Workplaces.

Commercial Property Executive reports that the new owner of the office buildings plans to reposition them to meet the anticipated demand for office space in Dallas. The fund plans to upgrade the existing amenity package, adding such benefits as a concierge service, a building conference center and an information conduit. It also plans to pursue LEED certification.

Additionally, CBRE Global Investors announced the intention to hire a new leasing team and plans to launch a rebranding campaign for the building, according to Vance Maddocks, president of CBRE Strategic Partners U.S., which will oversee the marketing campaign, the Dallas Business Journal reported.

Included in the purchase is the adjacent 2.6-acre tract of land for a third tower that has never been built.

The investor anticipates that the local office sector will be revived by the job growth across all sectors, which is one of the main reasons for the acquisition. CBRE Global also owns the Urban Towers in Las Colinas and Sterling Plaza and Preston Commons in Preston Center.

Photo credits: Regus.com

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Construction Begins on Oak Lawn Luxury Apartment Community

By Camelia Bulea, Associate Editor

Addison-based Behringer Harvard has begun construction on a new luxury apartment community in the Oak Lawn/Uptown submarket of Dallas, at the intersection of Maple and Oak Lawn avenues. Trammell Crow Residential, the developer of the apartment community, partnered with Behringer Harvard on the acquisition.

The new project will sit on 4.6 acres, including a site at 2607 Throckmorton St. that will require razing of existing 1960s-vintage housing to make way for a new luxury multifamily community with 276 apartment homes, according to a news release from the developer. Dubbed 4110 Fairmont, the luxury community will comprise a four-story residential building wrapped around a five-level parking garage. The community will also include 23 three-story townhomes with attached two-car garages.

Apartment amenities include eight-foot entry and patio doors, ceiling heights of more than nine feet, kitchens with granite countertops, under-mounted sinks with tumbled-stone backsplashes, and baths with oversize Roman bathtubs featuring tile surrounds and separate showers in selected units, according to a statement from Behringer Harvard.

As for the common-area amenities, residents will be able to enjoy a business center, a state-of-the-art fitness center, a virtual game room, two luxury swimming pools, landscaped walking paths and a dog station.

Targeting young urban professionals, 4110 Fairmont is built to meet a current market demand for superior apartments at competitive rents, located near Dallas’ central business district, according to Mark Alfieri, COO of Behringer Harvard Multifamily REIT I Inc. The units will be built to condominium-quality specifications and offer as many as two bedrooms and two-and-a-half baths.

According to a Marcus & Millichap report, rents in the DFW area will rise in 2012 by about 3.4 percent, as illustrated in the chart at left. The strongest gains in Dallas have occurred in the East and Oaklawn/Uptown/CBD submarkets.

Photo credits: www.facebook.com/BehringerHarvardResidential

Chart courtesy of Marcus & Millichap

Victory Healthcare Expands in DFW Area

By Camelia Bulea, Associate Editor

Victory Healthcare announced plans to build a $70 million specialized surgical hospital in Fort Worth, after opening its first surgical hospital in Plano on Oct. 1. The 48,000-square-foot Victory Medical Center Plano features 20 private in-patient suites, five operating suites and three special-procedure rooms.

Based in The Woodlands, the company plans to intensify its presence in North Texas with the opening of five new hospitals in the next five years, Robert Helms Jr., Victory Healthcare chairman & CEO, told the Dallas Business Journal.

Victory Medical Center Fort Worth, expected to open in early 2014, will be 75,000 square feet and will include eight operating suites, three special-procedure rooms and 25 private in-patient suites. Additionally, the hospital will include a new medical office building of the same size, but the final project will be designed so that the two equal buildings appear to be a single 150,000-square-foot building, the business journal reported.

At the opening, the Fort Worth hospital will employ 100 to 125 people, with plans to grow to 175 people. Meanwhile, Victory Medical Center Plano will employ about 100 nurses, lab technicians, operating room techs, physical therapists and pharmacists.

Currently, the Victory Healthcare network operates in San Antonio, Houston and Plano; two other hospitals are under construction in San Antonio and Beaumont. For the development and construction of the San Antonio hospital, Victory Healthcare is working with Medistar Corp., a company that specializes in the design, development and construction of integrated medical service plazas. It is very likely that the company will work with Medistar on the Fort Worth hospital, too, according to the Dallas Business Journal.

Photo rendering of Victory Medical Center Plano, courtesy of Victory Healthcare

MEPT Acquires 218-Unit Apartment Tower in Uptown Dallas

By Camelia Bulea, Associate Editor

Multi-Employer Property Trust (MEPT) recently announced the purchase of Mondrian Cityplace, a 218-unit apartment community in Uptown Dallas. The acquisition represents an important asset in MEPT’s portfolio, as it strives to increase its allocation in the apartment sector. The property is located in Uptown Dallas, one of the strongest rental markets in the United States.

Mondrian Cityplace, 98 percent leased at the time of the sale, is a Class A property with amenities and features that are well matched to serve the renter demographic in Uptown. According to an MEPT news release, common-area amenities include 24-hour concierge and door service, controlled access, a pool and a garden with an outdoor fireplace and BBQ area. Additionally, there are more than 19,000 square feet of ground-floor retail space and 456 parking spaces for tenants and retail customers.

The units themselves feature 40 different floor plans, with high-end finishes that average 1,432 square feet – significantly larger than the average unit size in the submarket, according to Bentall Kennedy. Plans call for adding sustainable features to the seven-year-old property in order to make it more energy efficient.

In 2012 alone, Bentall Kennedy has completed more than $400 million in acquisitions for MEPT, according to Paul Boneham, executive vice president & head of U.S. transactions for Bentall Kennedy, one of North America’s largest independent real estate investment advisors. Terms of the sale were not disclosed.

The 20-story community was sold by USAA Real Estate Co., which was represented in the deal by Holliday Fenoglio Fowler L.P. Greystar will continue to manage and lease the property, according to the Dallas Business Journal.

Photo credits: Hotpads.com

Behringer Harvard Invests in Luxury Multifamily Project in Allen

By Camelia Bulea, Associate Editor

Behringer Harvard announced that it has invested in a 444-unit luxury community through its subsidiary Behringer Harvard Multifamily REIT I Inc. The $50 million project is being built in Allen, a suburb approximately 20 miles north of Dallas. Texas Capital Bank is providing the construction loan.

Construction work on the 19-acre multifamily project began in August, with the first units expected to be available for lease in May 2013, according to Multi-Housing News. The project will be developed by TDI Real Estate Holdings L.L.C., in joint venture with Catlyn Capital Corp.

The community will comprise nine residential buildings of three stories each, a separate clubhouse and surface or garage parking options, according to a news release by Behringer Harvard. Common amenities will include access to a 40-mile hike/bike trail, resort-style pool, business center, fitness center, coffee bar, clubhouse and game room, along with exterior courtyards at each building. Additionally, units will feature nine-foot ceilings, hardwood-look flooring, walk-in closets, full-size washers and dryers, and kitchens with islands and designer appliances.

“We believe the community will appeal to young professionals who appreciate high-quality amenities and convenient access to the Hall, Legacy and Granite office parks, as well as other employment centers in North Dallas and Frisco,” says Mark Alfieri, COO of Behringer Harvard Multifamily REIT I Inc.

The Dallas Morning News reported last week that the REIT would be a development partner in a 377-unit apartment community built in Victory Park by Mill Creek Residential Trust.

A Marcus & Millichap report on the apartment market in the Dallas-Fort Worth Metroplex indicates a healthy recovery of the market, with almost 8,100 units coming online in 2012 and a rapidly expanding development pipeline that will deliver more units next year. The analysts add that much of this year’s completions will be in the Plano/Allen/McKinney submarket.

Photo rendering of Fitzhugh Urban Flats multifamily community in Dallas, courtesy of Behringer Harvard

Chart courtesy of Marcus & Millichap

L’Oréal Enters Dallas Market with Massive Distribution Center

By Camelia Bulea, Associate Editor

The world’s largest cosmetics, beauty and hair-care company, The L’Oréal Group, is reportedly planning to build a 513,000-square-foot regional distribution hub in southern Dallas County.

Such a project would add a lot of value to south Dallas, where development has been a top priority for Mayor Mike Rawlings, the creator of the GrowSouth plan. Business opportunities in the area that are mapped out in the plan include attractive location, available land and an inland port, noted the Dallas Business Journal. In exchange, the combination of jobs created by such a project and the significant infrastructural investment that L’Oréal would make could represent an important economic boost for the region.

The cost required to build the project is $22.5 million. Additionally, L’Oréal would have to invest $6.5 million in business equipment for the facility and between $3.5 million and $5 million to develop public infrastructure on the land, according to the Business Journal.

As for the human resources involved in the project, the distribution center could create more than 90 jobs initially, with growth potential for as many as 125 positions. Moreover, a substantial construction crew would have to be hired to build the massive center.

A recent CBRE report on the DFW industrial market shows that the area attracted some really large leases during the second quarter of this year, when the total net absorption of industrial space was 3.8 million square feet. Additionally, construction continued to slowly increase in the DFW market in the second quarter, with 1.4 million square feet under construction. CBRE also reported that South Dallas contributed much of the new industrial space built during that period.

Photo rendering of L’Oréal Canada’s distribution center, courtesy of L’ Oréal Sustainable Development

Charts courtesy of CBRE

Ranch at Ridgeview, Pecan Square Apartments Change Hands

By Camelia Bulea, Associate Editor

Ohio-based Connor Group recently announced the sale of the Ranch at Ridgeview in Plano, marking the fourth deal the company has completed in the past six months. The property was sold to investor Caf Rar Spe L.L.C. of Frisco. Terms of the sale were not disclosed.

Connor Group owned the 288-unit Ranch at Ridgeview since 2006, when the company bought it for $21.7 million, according to Collin County Business Press.

The deal fit into the firm’s operational model of buying underperforming properties, “improving their operations and value, and selling them at a return for investors,” said Larry Connor, managing partner of The Connor Group, as quoted by the Dallas Business Journal.

According to an official statement, Connor Group owns about 16,000 apartments in several states – including six in the Dallas-Fort Worth area.

A second multi-family deal in Dallas was the purchase of the 440-unit Pecan Square Apartments at 3535 Webb Chapel Road. PS Apartments L.P., represented by Dallas-based Knightvest Capital, is the new owner of the apartment community, as reported by the Dallas Morning News. The financing included a $10 million Fannie Mae loan.

Taylor Snoddy, Mark Freemand and Philip Wiegand of Transwestern Dallas brokered the sale of the 30-year-old complex, which was 95 percent occupied, according to Citybizlist.com.

A Marcus & Millichap report on the apartment market in the Dallas / Fort Worth Metroplex indicates a healthy recovery of the market, with almost 8,100 units coming online in 2012 and a rapidly expanding development pipeline that will deliver more units next year. The median sales price rose to $42,700 per unit (see chart at left), attributable in part to fewer distressed property sales. At the same time, though, values increased, thanks to strengthening operations and heightened demand.

Photo credits: www.bncrealestate.com

Chart courtesy of Marcus & Millichap

GE to Open Fort Worth Plants in Fourth Quarter

By Camelia Bulea, Associate Editor

GE Transportation has invested $190 million to build two locomotive and mining equipment plants in Fort Worth, with plans to open them in the fourth quarter of this year.

According to the Star-Telegram, the company announced in May that it would spend about $96 million to convert and expand an existing facility totaling about 500,000 square feet in north Fort Worth for locomotive production. A few months later, the company announced a second investment in the area: $95 million to add an adjacent 400,000-square-foot plant to manufacture drive systems for mining equipment.

GE plans to hire approximately 500 machinists, assemblers, skilled welders and maintenance technicians for these plants, according to the Dallas Business Journal. In addition, having been granted an 85 percent tax abatement for 10 years, it has agreed to spend at least $5 million with Fort Worth construction contractors and at least $200,000 annually with Fort Worth companies, according to an article published in GoErie.com at the beginning of this year.

Both the Fort Worth plant and the company’s manufacturing site in Erie, Pa, will build the Tier 4 Evolution Series Locomotives, which will be the cleanest and most fuel efficient on the market, GE officials said in a recent statement. Additionally, GE will produce its Tier 4 compliant diesel engines at its manufacturing plant in Grove City, Pa. According to a company news release, the new locomotive will decrease constituent emissions by more than 70 percent and save railroad customers more than $1.5 billion in infrastructure and operational costs.

Marcus & Millichap reports that following a recovery in the Dallas-Fort Worth industrial market last year, growth in demand will foster significant improvements for industrial property owners in 2012. Aside from owner-user space, developers will complete 780,000 square feet of competitive space this year. Last year, projects totaling 1.6 million square feet were completed, as depicted in the chart at left.

Charts courtesy of Marcus & Millichap

Simon Breaks Ground on Phase II of Firewheel Town Center

By Camelia Bulea, Associate Editor

Shopping center giant Simon Property Group Inc., developer of the 1 million-square-foot Firewheel Town Center in Garland, started the second phase of the mixed-use project.

The phase, called Parkside, will include 281 apartment units, according to the Dallas Business Journal. The multifamily project is expected to be completed in December of next year, with the first units being available for occupancy in September 2013. It will nearly double the number of units at the center, as the first phase featured 312 apartments.

Simon aims to offer residents the possibility of shopping and dining in the interior of the Main Street-style shopping, dining and entertainment center, according to the property’s Web site. Unit amenities will include Washington cherry, pear or maple-finished cabinets, garden tubs with tile and accent surround, track lighting and granite kitchen countertops.

Meanwhile, Alta 1900 Lofts, a 214-unit luxury apartment community, was recently acquired by Bell Partners Inc. on behalf of investors, according to the Dallas Business Journal. The North Carolina-based buyer plans to rename the luxury community Bell Design District in order to reflect its branding strategy. The investment company, which has acquired more than $330 million in apartment properties throughout United States, is currently building a portfolio containing high-quality properties in target markets, according to Jon Bell, the company’s president.

The downtown luxury property, situated within the Design District area of Dallas, features unique apartments with granite countertops, stainless steel appliances and technology packages that include in-wall iPod docking stations. Rents for available apartment units range from $1,500 to $2,005 per month, according to the property’s Web site.

Photo credits: http://parksideatfirewheel.com

Transwestern, State Farm Buy 380,000-SF Plano Office Building

By Camelia Bulea, Associate Editor

Transwestern Investment Management partnered with State Farm Life Insurance Co. to purchase an approximately 379,404-square-foot Class A office building located in Plano.

5320 Legacy Drive is one of three buildings in The Campus at Legacy, which was recently redeveloped to earn Leadership in Energy and Environmental Design (LEED®) certification from the U.S. Green Building Council (USGBC), according to a TIM news release. The building is 100 percent occupied by Denbury Resources Inc., an oil and natural gas producer, and serves as its corporate headquarters.

The building was sold by KDC Real Estate Development & Investments and Spear Street Capital, which purchased The Campus at Legacy property with two other partners in 2005. KDC redeveloped the buildings and took the 1.2 million-square-foot complex to 95 percent occupancy.

The deal was put together by Transwestern’s Collin Comer, managing director of national acquisitions, and Jonathan Napper, vice president of acquisitions, the company said in the release.

Meanwhile, a new $30 million upscale apartment community broke ground last week in Historic Downtown Plano. The mixed-use development is a public-private partnership between Chicago-based NXT Capital; Franklin, Tenn.-based Southern Land Co. and the city of Plano, according to the Dallas Business Journal. The official groundbreaking ceremony took place at the site on Aug. 22.

Scheduled for completion in 2014, the project will feature 279 units and 9,000 square feet of retail space, including an urban 7-Eleven store, developers said in a news release. Additionally, amenities will include a fitness facility, pool and other conveniences that support active lifestyles, but the developers agree that the most prominent amenity that this project will bring to its residents is convenient access to the abundant shopping and dining of Historic Downtown Plano.

Photo rendering of The Campus at Legacy, courtesy of Spear Street Capital

Colliers Wins 1.4 MSF Galleria Office Towers Lease Assignment

By Camelia Bulea, Associate Editor

The high-profile Galleria Office Towers on the LBJ Freeway have a new marketing and leasing representative. As of July 30, a leasing team from Colliers International’s Dallas office was awarded the leasing assignment for the three-building complex, which totals 1.4 million square feet of office space. The office property has a current occupancy of 85 percent.

According to the Dallas Business Journal, the Colliers leasing team is led by David Quisenberry, executive vice president, and will include Michael Carmichael and Chris Lipscomb.

Los Angeles-based Cannon Commercial has owned the Galleria Office Towers since May 2008, when it acquired the complex from New York-based Fortis Property Group for more than $300 million, according to D Magazine. Cannon Commercial also owns 7515 Greenville and Toll Hill Office Park in Dallas, and well as a number of assets in Houston and San Antonio.

The buildings – which represent one of the largest office spaces in suburban Dallas – were constructed between 1982 and 1991, according to the property’s Web site. The towers offer skyline visibility, and access to DFW International Airport, Addison Airport and Love Field. They are connected to the Westin Hotel and the Galleria Mall.

Meanwhile, Hudson Advisors, a global investment firm owned by Lone Star Funds, has decided to keep its headquarters at The Tower at Cityplace in Dallas. The Dallas-based investor re-signed its lease for 110,652-square-feet of space because of the property’s amenities, which include a conference center, Larry North Fitness, a food court, a cafeteria and DART access, according to the Dallas Business Journal.

The 42-story, 1.2 million-square-foot property is about 86 percent occupied, but has a large vacancy on floors 30 to 33 of 120,000 square feet of office space.

Chart courtesy of www.cbre.us

1400 Hi Line Glass Tower Opens Half Leased

By Camelia Bulea, Associate Editor

1400 Hi Line – a glass tower in the Dallas Design District – opened with half of its available apartments leased: 57 of the 110 luxury apartments  built out on the lower 10 floors. The tower opened on July 2, 18 months after it broke ground.

The 24-story tower will ultimately feature 314 total units; the upper floors are expected to be completed by mid-January 2013, according to the Dallas Business Journal.

The 312,708-square-foot apartment property features some incredible amenities, such as a salt water infinity-edge pool with underwater sound system, a relaxation and reading area nestled among the trees, grass lawns with a fountain, a 100-inch outdoor movie screen for special events, and a skyline lounge with movable walls that expand to the outdoors. That’s just part of the reason why the high-rise apartments cost between $1,461 for a one-bedroom and $4,780 for one of the yet-to-be-completed penthouses.

The apartments have floor-to-ceiling windows and seven-foot decks that look onto the Margaret Hunt Hill Bridge, the American Airlines Center and downtown Dallas along Interstate 35E, according to the dedicated Web site.

The tower was designed by Gromatzky Dupree & Associates, the same architectural firm that designed Victory’s Cirque apartment tower and PM Realty’s Park Lane project. Rogers-O’Brien Construction is the general contractor, according to The Dallas Morning News.

Houston-based PM Realty Group is developing the high-rise property, the same company that built the residential tower in Dallas’ Park Lane complex across from NorthPark Center mall. The glass tower will also feature 27,000 square feet of retail space.

The 1400 Hi Line project was awarded Multifamily Residential Deal of the Year in 2012 by the Dallas Business Journal.

Developers Add 576 New Apartment Units to DFW Area

By Camelia Bulea, Associate Editor

It appears that the Dallas – Fort Worth area is hungry for new apartments, as two new multifamily projects will add to the local housing stock: a 258-unit project in Downtown Dallas and a 318-unit apartment community in North Fort Worth.

The Dallas residential project is a redevelopment of the Petroleum Tower at 1907 Elm St. and Corrigan Tower at 1900 Pacific Ave. into a single complex, according to the Dallas Business Journal. The two redeveloped buildings will offer 258 residential units and total about 350,000 square feet. Development costs are estimated at $45 million, with $10.3 million in tax increment funding pending approval by the city council.

PetroCorrigan Towers LP, the project’s developer, plans to have demolition permits by January 2013. It also plans to have its certificate of occupancy by March 2015. Merriman Associates Architects Inc. will design the project.

The second multifamily project, called Overlook Ranch, will be developed by Dallas-based SWBC Real Estate LLC. The company has bought 18.5 acres of land near State Highway 170 and Interstate 35W in north Fort Worth, on which it plans to develop a 318-unit, Class A apartment community, as reported by the Dallas Business Journal.

Located in AllianceTexas, the 17,000-acre master-planned community, the parcel was acquired from Hillwood Properties, which plans to develop up to 3,000 multi-family units. Currently, 550 units are completed or under construction. Hillwood plans to break ground on another 360 units during the second half of 2012, according to the Business Journal.

Studies show that the Dallas-Fort Worth housing market recorded a 19 percent rise in new-home construction during the second quarter of this year. Given  the increase in North Texas’ population over the past decade and the emerging demand for multifamily units, the DFW area will likely see more projects of this kind in the near future.

Chart courtesy of Marcus & Millichap Real Estate Investment Services Inc.

Photo rendering of Mission Hills Apartment Homes, developed by SWBC Real Estate LLC in San Antonio, courtesy of www.liveatmissionhills.com.

Dallas Questions: Is RockBridge Buying the Adolphus Hotel? And Will The Colonnade Sale Set a Record?

By Camelia Bulea, Associate Editor

The Adolphus Hotel in Downtown Dallas could celebrate its 100th birthday with a new owner.

According to the Dallas Morning News, Ohio-based hotel RockBridge Capital is interested in buying the 20-story landmark. As the hotel was last renovated in 1980 for $45 million, the investor would need to make some improvements to the 440-room building. The hospitality property is currently owned by a Boston partnership that has controlled the property since early this year.

The Adolphus was opened on Oct. 5, 1912, built by the founder of the Anheuser-Busch company, Adolphus Busch, in a Beaux Arts style. Busch’s intention in constructing the hotel was to establish the first grand and posh hotel in the city of Dallas. With 22 floors standing a total of 312 feet, the building was the tallest in Texas until it was dwarfed by the Magnolia Petroleum Building (now the Magnolia Hotel) just down the street in August 1922, according to Wikipedia.org.

The Dallas Morning News adds that if the Adolphus gets a redo, it would be the second major downtown hotel undergoing a remodeling.

Another landmark property, the Colonnade office complex in Addison, may be about to set a new record in North Texas: It could be sold for $200 million, which would be one of the biggest prices paid for a commercial project this year in the area, according to the Dallas Morning News.

The three-building complex has more than 1 million square feet of first-class business space and is currently 90 percent leased. Among its major tenants are names like United Surgical Partners International, Willis of Texas, Hilton Worldwide, Frost Bank and Source Direct.

CBRE Global Investors owns the property, and Holliday Fenoglio Fowler is marketing it.

Photo rendering of the Adolphus Hotel, courtesy of Wikipedia

Investors Shop for Medical Office Buildings in DFW

By Camelia Bulea, Associate Editor

Two investors recently purchased medical office properties in the Dallas-Fort Worth Metroplex. American Realty Capital Healthcare Trust Inc. bought two medical office buildings in the North Texas markets of Arlington and Sunnyvale, while commercial real estate investment fund Velocis and its investors have purchased Magnolia Medical Tower, an 89,727-square-foot medical office building formerly known as the Medical Arts Building and located in the heart of the Fort Worth Medical District.

The American Realty Capital affiliate bought the Texas Medical Clinic, a three-story, 66,819-square-foot medical office facility in Arlington, and Sunnyvale Medical Plaza, a two-story, 48,910-square-foot medical office building in Sunnyvale, according to the Dallas Business Journal.

The publication quoted Jason Signor, CEO of seller Caddis, as saying that Caddis will continue to manage the two properties, as well as other 10 medical assets in the Metroplex.

For its part, Velocis plans to invest about $1.5 million in renovations to help increase the building’s occupancy, according to a company’s news release. This is the fourth investment property Velocis has purchased in the last year.

The other three properties in Velocis’ portfolio are:

• The Jefferson, a 97,552-square-foot medical office building in Austin that it purchased in March 2011;
• 7700 San Felipe, a 100,716-square-foot office building in Houston purchased in September 2011; and
• The iconic Ridglea Village, a 112,117-square-foot shopping center in Fort Worth that it purchased in October 2011.

Located adjacent to Baylor All Saints Medical Center, Magnolia Medical Tower offers easy access to area hospitals Cook Children’s Medical Center, Texas Health Harris Methodist Hospital Fort Worth and Plaza Medical Center of Fort Worth, as well as medical offices, in the surrounding downtown medical district. Built in 1985, it is currently 67 percent leased by private doctors and medical service firms.

Photo rendering of Magnolia Medical Tower, Fort Worth, courtesy of LoopNet

The Second Community at Canyon in Oak Cliff Breaks Ground

By Camelia Bulea, Associate Editor

The Canyon development in Oak Cliff has reached a new milestone — the groundbreaking of its second community, now that the first community is at 100 percent occupancy.

The 200-acre mixed-use project, owned by Stratford Land and developed by GoundFloor Development, will be a community environment designed for livability, workability and convenience. It will include residential, retail and office uses, according to a news release by Stratford Land.

The second community, called The Hillside West Seniors Community, is expected to be completed in the winter of 2013 and to include 130 units, featuring one-bedroom and two-bedroom configurations. The age-restricted community will also feature amenities such as a swimming pool with sundeck and seating area, a clubhouse with fitness and wellness centers, and an herb planting garden.

The first community, which recently reached 100 percent occupancy, is a 160-unit affordable multifamily property completed in October 2011; it has achieved a LEED Gold certification.

According to the Web site dedicated to the entire mixed-use project, the commercial component’s retail and office projects are planned for approximately 84 acres.

Meanwhile, a downtown Dallas skyscraper has been posted for the July foreclosures. The 33-story, 845,000-square-foot skyscraper at 2100 Ross Ave. was last assessed at $60 million, the Dallas Business Journal quoted from the Dallas Central Appraisal District. The tower, previously known as San Jacinto Tower, is owned by New York City-based The Moinian Group and was last sold for $73 million.

Photo showing the Canyon tract map; Image credits: www.thecanyoninoakcliff.com

Terra Verde Completes Largest North Texas Residential Land Sale

By Camelia Bulea, Associate Editor

Terra Verde Group L.L.C. has completed the acquisition of 2,031 acres of residential land in Prosper, the largest residential land sale in North Texas this year. It plans what will become one of the largest such developments north of Dallas.

The Southlake-based company’s big plans for this tract include 3,500 single-family lots, a mixed-use office component on 120 acres, three school sites and four amenity centers, according to a Terra Verde news release. The single-family lots will be priced from $225,000 to $475,000.

According to the news release, the master-planned development, called Three Stones, will cost about $250 million. TVG paid $30 million for the all-equity transaction, according to The Wall Street Journal.

The company bought the tract from a partnership that included national real estate owner, operator and developer Forest City Enterprises Inc. Forest City plans to sell about 35 other properties within its land portfolio, according to the Dallas Business Journal.

Terra Verde plans to break ground on the community this year, according to the Dallas Morning News. Market analysts and developers agree that there has been an increased demand for house lots, with homebuilding starting to rebound in Dallas’ north suburbs. Earlier this year, the company acquired a large residential community outside Nashville that stopped construction when sponsor Lehman Brothers went bankrupt. Terra Verde Group also has projects in Arizona and California.

Meanwhile, Stream Realty Partners L.P. was selected to provide property management and leasing services to a huge industrial portfolio in Texas and Georgia owned by DRA Advisors L.L.C. The assignment offers Stream Realty an additional 2.5 million square feet to manage and lease in the Dallas market, with a total of 7 million square feet in Atlanta, Austin, Dallas, Houston and San Antonio.

Photo showing CityPlace development by Terra Verde Group LLC in Dallas, Texas

Fort Worth, Richardson Office Complexes Sold

By Camelia Bulea, Associate Editor

The Dallas-Fort Worth Metroplex saw two recent office sales: Overton Centre, a 447,917-square-foot property in Fort Worth, was purchased by local real estate investor and developer TLCurban, while New York City-based real estate investment trust CapLease Inc. purchased a two-building office complex in Richardson.

According to the Star Telegram Blog, Addison-based real estate investment firmFrontier Equity and Holt Lunsford bought Overton Centre in July 2010. At that time, the complex was 85 percent leased. Two years later, the property is 93 percent leased. It includes two nine-story office towers and a data center, and sits on 24.6 acres well suited for future data center or hotel development, according to the Dallas Business Journal.

Gary Carr, Russell Ingrum, Eric Mackey and Robert Hill of CBRE Group Inc. represented the seller.

The Richardson purchase included two buildings totaling 318.000 square feet and went for $46 million, according to Citybizlist.com. One building is leased to a large subsidiary of AT&T through 2020, while the second is leased as the headquarters of MetroPCS Wireless. It is leased through November 2018, according to the Dallas Business Journal.

“These two Class A fungible office properties with structured parking have a very attractive yield and were acquired at a cost of about $144 per square foot, which we believe is about half of the replacement cost,” CapLease chairman & CEO Paul McDowell told Citybizlist.com.

Photo credits: CoStar