DTD: Gulf States Bldg. + 1414 Elm + Third Rail Lofts (1407 Main)(16 ST.)

[GarrettCarey]

There is an abandon building on the Northwest corner of Akard & Main Street that I was curious about. It is boarded up at the street level. Anyhoo, I was wondering if anyone knew about this building (i.e. architectural significance, history, future plans, etc). I believe it is 12 stories or so and it seems like another ripe spot for residential redevelopment. Does anyone know anything or have any thoughts?

[Columbus Civil]

This may be the building. It is the last building on that side of the street on that block that is listed by DCAD. I did a search on Cedric Corp., but didn't find anything.

www.dallascad.org/dcadcom.cfm?theKey=00000100681000000&thecheck=0 (http://www.dallascad.org/dcadcom.cfm?theKey=00000100681000000&thecheck=0)

[GarrettCarey]

Akard may get 60 lofts
Gulf States Building could revive corner on Main Street

09/23/2002

By STEVE BROWN / The Dallas Morning News

Most pedestrians don't notice the Gulf States Building even though it's on one of the busiest corners in downtown Dallas.

The 16-story brick high-rise at Akard and Main streets has been vacant for so many years that passersby tend to ignore it.

"There's not much there to look at," said Alice Murray. "It was around 1985 when Delta Airlines closed its ticket office on the ground floor, and it's been vacant since that time."

Ms. Murray, who was part of the team that redeveloped the Kirby Building next door, plans to turn the Gulf States Building into 60 loft apartments. She says she hopes the changes will bring life to the last dead corner at Akard and Main.

"It's needed attention for some time," said Larry Fonts of the Central Dallas Association. "Renovating that building will help create a true urban neighborhood there."

The derelict Gulf States building is one of the few rotten teeth left on Main Street's new smile.

Developers have restored the Kirby, Magnolia and Adolphus Tower buildings at the other three sides of Akard and Main.

And the empty Davis Building in the same block as the Gulf States tower is currently being redeveloped.

Built in 1927

Built in 1927, the Gulf States Building at 109 N. Akard has already had one facelift. In 1935, six floors were added to the brick-and-stone tower to accommodate more tenants, including Gulf States Security Life Insurance Co.
"When it was constructed, they built it to allow more floors to be added on top," Ms. Murray said. "And when they increased the height, they also air-conditioned."

The building was once one of downtown's most popular business addresses and a favorite with oil and gas companies. But the high-rise fell from favor in the 1970s, in part because of its small, narrow floors.

Those long floors are perfect for residential space because they allow so many windows, said Ms. Murray.

"I intend to complete the purchase before the end of the year and hope to start construction during the second quarter of 2003," she said.

New construction

The Gulf States Building renovation is being planned to coincide with a larger project on the vacant lot next door.
Dallas investor and developer Brook Partners Inc. says it's in the preliminary stages of a plan to construct a building between the Gulf States and Davis buildings. It would contain ground-floor retail, parking and residential units on top.

"Together, our projects should have about 200 residential units," Ms. Murray said.

Brook Partners says it hopes to lure a grocer and other tenants to its building on the site of the demolished Metropolitan Life Tower.

"I'm sure the people who live next door in the Kirby Building and the other neighbors can't wait for the Gulf States Building to be improved," Ms. Murray said.

After the Gulf States Building is remodeled, the Mercantile National Bank Building will be the last historic skyscraper along Main Street that hasn't been restored.

E-mail stevebrown@dallasnews.com


http://www.dallasnews.com/business/stories/M_IMAGE.f029164100.93.88.fa.80.4c051592.jpg

[MustangMonkey]

More Great news.

[metrosteve]

It is quite possible that the new, rumoured Kroger store near Elm and Akard, will in fact be a part of the Brooks Partners adjoining development referred to here in Steve Brown's story.
There is very little other space around this particular location that could be the site of new construction. Hope this happens!!!!

[gc]

Did anyone read Sunday's DMN article about the Gulf States Building? I tried to find it online but somehow it escaped me (plus I was busy). If anyone can find it online, please post it....it was a good read.

[jsoto3]

retrieved from the DMN archives:


From soggy to shining

Developer has faith she can turn around the Gulf States Building
By Cheryl Hall
Published February 23, 2003

Welcome to the Titanic," Alice Murray says as she shines a flashlight on the musty, pitch-dark basement of the old Gulf States Building in downtown Dallas.

You almost expect fish to swim through rusted, Swiss-cheese holes in the basement's boiler and generator, corroded beyond recognition by years of total submersion. A commercial vacuum cleaner is crusted to one wall like a modern sculpture.

Harder to imagine is Ms. Murray's vision of turning this shipwreck into a chic subterranean restaurant and nightclub.

The 50-year-old principal of Alice Murray Co. bought the 76-year-old building at Main and Akard streets last November and plans to turn it into 69 executive-class apartments on 17 floors.

Ms. Murray, who could pass for a Gen-Xer half her age, isn't some wide-eyed Alice in Wonderland. She's been down this path before, having successfully transformed the historic Kirby Building into 156 loft apartments for developer Craig Hall.

"It took a long time, and everything that could go wrong went wrong," she says about the Kirby, which is now fully leased. "Nobody had done a building like that in Dallas before."

And as the penthouse resident of the Kirby, she knows firsthand the yin and yang of high-rise living in downtown Dallas. Getting a grocery store next door to her building is high on her priority list.

This time, she intends to put hard-fought expertise to work for her own bank account. But that also means it's her neck trying to avoid the financial noose.

The Gulf States building "has wonderful art deco details," Ms. Murray says, "but the building was totally abused for 14 years. It's going to cost $2 million just to fix the façade."

No one really knows how long the building, a Main Street mainstay since 1927, was left to rot. It was only after the stench became so bad five years ago that the city forced its way in and discovered foul seepage - seven feet deep - in the basement that had to be pumped out.

Ms. Murray never intended to buy the eyesore that lies directly across Akard from the Kirby and the popular Jeroboam restaurant. She just wanted the absentee owner to fix the broken windows so her residents wouldn't have to look at them.

The 'Coo Building'

The Gulf States had become known as the Koo Building after Chinese investor Henry Koo, who bought it for $3 million during the real estate heyday, intending to flip it for a quick profit. When Mr. Koo (who lives in Hong Kong and refused to answer e-mailed questions) couldn't find any takers, he moved on to more lucrative investments.

"Everyone thought it was the 'Coo Building' because of all the pigeons flying out of it," Ms. Murray chuckles.

It took her six months to track down and arrange a meeting with Mr. Koo during one of his trips here in 1998. He had forgotten he even owned the buidling, Ms. Murray says.

At first she tried to broker a deal for Mr. Koo, putting together a detailed analysis about what might be done with it.

The only thing that made any sense was to turn it into an apartment high-rise. But Mr. Koo wouldn't lower the asking price enough to make the economics work.

"He thought I was crazy, and I thought he was completely Looney Tunes," she says of their offbeat business relationship.

"He said, 'You're nuts, but you're passionate.' I said, 'You're nuts, and you're not passionate about anything.'"

Five years later, Ms. Murray talked Mr. Koo into selling her the building for $1.4 million - less than half of his first price.

Then her real work began.

Ms. Murray's experience, coupled with putting her personal wealth at risk, were the key reasons that J.P. Morgan Chase & Co. agreed to lend Ms. Murray nearly $1 million to buy the property, says Linda McMahon, senior vice president of community development for the bank.

"We only do this with someone who can execute the plan," says Ms. McMahon.

"I'm not worried at all about being paid back. We all know she'll go to the mat before Alice gives up."

Farm girl goes urban

It might seem curious that this fifth-generation farm girl - the middle child of seven siblings in a tight-knit Irish-Catholic family - has turned into such an urban beast.

To Alice, it's the most natural thing in the world.

"We were never around corporate business people. Dad was always doing his own thing. That's where we all got our entrepreneurial bent," she says. "None of us works well for others."

The family homestead first settled by Murrays in the 1870s was so isolated among the cornfields outside Champagne, Ill., that calling next-door neighbors was long-distance.

Alice's idea of going off to college was 11 miles away at the University of Illinois, where she earned a degree in interior design in 1974.

Two years later, Alice visited a sister in Dallas for Thanksgiving.

"The weather was so beautiful, I just opened up the Yellow Pages and looked for firms similar to the one I was working for in Chicago," she recalls.

Not only did she find a company open that holiday weekend, but the owner offered to triple her salary to move to Dallas.

"My first job was right here on Main Street," she says, tapping the desk in her contemporary Kirby penthouse.

"I was making more money than I should have at age 23. I couldn't rake it in fast enough and didn't have time to spend it all."

She opened her own interior design business, which prospered on new office and bank buildings until succumbing to the real estate debacle in 1992.

"I'd survived the worst part, but I was starting to do residential work, which I just hated," she says.

Developer friends talked her into taking the reins of the Real Estate Council, a nonprofit group being put together to revitalize inner-city neighborhoods.

"I went from seeing how much money I could make to seeing how much money I could do without and still make an impact," Ms. Murray says.

"I learned to insert myself to make things happen, and I was having more fun than I'd ever had before."

Revitalizing the Kirby

In 1997, Craig Hall asked Ms. Murray to revive his Kirby project, which had been put on hold after he got crosswise with the powers at City Hall.

"Craig was sitting on an $11 million investment that was worth zero if he didn't do something with it," she says.

"But he'd burned every bridge there was with the city and needed someone to reactivate those relationships."

Ms. Murray had great ties with the city since much of her job at the Dallas Real Estate Council was providing resources to the housing, economic development and public works departments.

"I was able to open doors again, smooth feathers and put the pieces together," she says. "This wasn't just about construction. It was about revitalizing downtown and building a community."

Mr. Hall sidesteps a question about why the Kirby project was derailed early on.

But, he says, his pioneering team pulled off more than a project - it conquered an important mission for Dallas with the restoration, which wound up costing about $22 million.

He chose Ms. Murray as project manager because of her perseverance and optimism.

"She sticks with things and looks for creative solutions when problems come up," says her former boss, who was in Austria with his ambassador wife during the Kirby construction and now stays busy making cabernet at his Napa Valley winery.

As for Ms. Murray's latest endeavor, Mr. Hall says that development of Main Street is still fraught with challenges, but her commitment, experience and desire should steer her through.

An executive look

Ms. Murray's Gulf States is one of a dozen projects in various stages of development that could add 1,800 residences to the city's core.

Her building is one of the most daunting because she intends to do more starting with less.

"We've probably maxed out that first wave of young creative-type pioneers who want bare-bones lofts," she says of the urban-funk look prevalent in the downtown rental units.

"I want to build something that the next tier of office executive would live in, with granite countertops, stainless refrigerator fronts and painted walls."

The City Council has given its blessing with $3.2 million in tax-increment funding.

Now Ms. Murray has to nail down investment equity, federal loan insurance, historic tax credits and architectural plans.

September start

If all goes like clockwork - and she's savvy enough to know that it rarely does - construction crews could begin the $11 million project in September, with the first tenants moving in by fall 2004.

The timing also depends on the city's building its parking garage with shops (and maybe that grocery) on the vacant lot between her building and the Davis Building, which is also being converted into lofts.

Larry Fonts, president of the Central Dallas Association, says this ugly duckling makeover will take tenacity. "Alice has an indomitable spirit. I have every confidence that she will bring it through."

"It's a great building," says Karl Stundins, area redevelopment manager for the city.

"That's one of Alice's strong points. She's able to see the potential in these historic downtown buildings and has the gumption to pull it off."

[crescentboi]

This is going to be a great project I think, and I can also imagine that once they go up for lease, they will be filled within hours! Because its true that there are people who want to live downtown but don't want the exposed brick and such. I just wish this woman had more money and was able to tackle some other projects!

[bloodandpopcorn]

I love how downtown development seems to be growing and growing. almost expontentially. I think Dallas' development downtown is going to be great and wonderfull diverse, mainly because it is so uncontrived. Many different people, many different projects, all coming together in one area. It will give a true variety that even Victory, while likely amazing and extrordinarily helpful, will not be able to match.

[psukhu]

He had forgotten he even owned the buidling


I think the same could be said about some other run down properties (and lots) in downtown.

[tamtagon]

The timing also depends on the city's building its parking garage with shops (and maybe that grocery) on the vacant lot between her building and the Davis Building, which is also being converted into lofts.

Does anyone know if the city has made any progress with the parking garage on the vacant lot between the Gulf States and Davis buildings?

[gc]

That is a good question tamtagon. It has been rather quiet lately in terms of progress with the grocery store, parking garage, and the gulf states building. I'll see if I can find anything out.

[214]

Is this project ever gonna get done,does anyone have any information,i hope it gets done

[psukhu]

The ground floor will be a grocery store.

I think the city has yet to grant the tax incentive. Just a matter of time I guess.

[crescentboi]

I just walked by the lot today and noticed these signs posted on the Gulf States Building! Very excited about this! Should be a sight to watch this go up! Anyone have more info?

[snooch]

Wasn't the garage between the Gulf States Bldg and The Davis supposed to have a grocery store on the first two floors? I think that would be a pain in the ass for loading, but woulda been cool if it had happened.

[Wineguy2000]

The TIF Board discussed this morning about extending the completion dates of these two structures from June 2005 to June 2006. Figuring 18-24 months construction time this project should be starting development relatively soon. A month ago they had their tif raised from 1 million to 4+million because of a tremendous amount of asbestos. Keep your windows closed in the Davis Building.:) This should be an interesting project during construction. I believe the basement is flooded and that there are thousands of birds inhabiting the rest of the building.

[Wineguy2000]

The garage is now supposed to be 10-15 stories with possible apartments on top. We should have the interurban grocery store finished by the time this is completed.

[Columbus Civil]

I noticed those signs Wednesday night after we left the Vallejo concert at Pegasus Park. I thought they were just there to tease us.

[Wineguy2000]

Correction the construction is to be finished by Feb 2006.

[crescentboi]

Well I haven't heard anything lately about apartments on the top. I know that was proposed earlier, but I don't think that's gonna happen now. From what I understand it's supposed to start around Jan. It will be nice to get ride of that aweful parking lot! It's gets trashed out every friday and satuday night! This will be very nice. I wonder if part of the redevelopment of the Gulf building, they'll clean the exterior. I was looking this afternoon and there is some great detailing on the outside that you can't really see now because its so dirty. Very excited about this...yes it will be interesting to watch!

[crescentboi]

I know this is what was proposed earlier...if they did this it would be AWESOME!!!

[Columbus Civil]

Does anyone know if the Gulf States Building units will be for sale or lease? And if they're for lease, will they eventually be converted to condos, as is planned for the Davis building?

[geosophy]

When I was talking with the developer, his plan is to do just over 60 for lease units in Gulf States. Now that Alice is out of the picture, he is in redesign mode. The original redevelopment plans did not call for a service elevator and the trash chutes are needing to be redesigned. Good news is that the historic commision has approved for all new windows to be installed. Also from talking with the developer, I am not all that sure the garage will be as tall as everyone thinks. He was talking about the windows on the west side of the building having views of Davis. The original plans for the Davis Lot garage called for it to completely cover the western portion of the Gulf States Building. :)

[crescentboi]

Well to find out for sure that the parking garage is canceled for the Davis Lot, but the Gulf States Building will start construction Sept 1st as of now for the conversion to apts! Yeah! That will help out a lot with that area. Akard right there is a pain to walk down 'cause the building smells so bad.

[bloodandpopcorn]

I wonder what kind of ground floor developments they will be trying to attract. Just more restaurants, I assume? It'd be nice if they tried to get an electronics or CD store...

[geosophy]

I would love it if a CD store or electronics store would go into the 1st floor retail of Gulf States. I am not sure what the developer was wanting to do with the first floor. I will try to get a hold of him and see if I can get some more information. :)

[clipper]

How are they going to park the Gulf States buidling without that garage?

[tamtagon]

From soggy to shining

Developer has faith she can turn around the Gulf States Building
By Cheryl Hall
Published February 23, 2003

...

September start

If all goes like clockwork - and she's savvy enough to know that it rarely does - construction crews could begin the $11 million project in September, with the first tenants moving in by fall 2004.

The timing also depends on the city's building its parking garage with shops (and maybe that grocery) on the vacant lot between her building and the Davis Building, which is also being converted into lofts.

Larry Fonts, president of the Central Dallas Association, says this ugly duckling makeover will take tenacity. "Alice has an indomitable spirit. I have every confidence that she will bring it through."

"It's a great building," says Karl Stundins, area redevelopment manager for the city.

"That's one of Alice's strong points. She's able to see the potential in these historic downtown buildings and has the gumption to pull it off."

Did anything happen with the Gulf States Building?

[gc]

Not yet. As I understand it, they are still working out the plans and financing. It is far from dead.

[tamtagon]

Copied from "The Davis Lot" thread (http://forum.dallasmetropolis.com/showthread.php?t=2310&highlight=gulf+states+building), geosophy shared this:

When I was talking with the developer, his plan is to do just over 60 for lease units in Gulf States. Now that Alice is out of the picture, he is in redesign mode. The original redevelopment plans did not call for a service elevator and the trash chutes are needing to be redesigned. Good news is that the historic commision has approved for all new windows to be installed. Also from talking with the developer, I am not all that sure the garage will be as tall as everyone thinks. He was talking about the windows on the west side of the building having views of Davis. The original plans for the Davis Lot garage called for it to completely cover the western portion of the Gulf States Building.

When all those old buildings are fixed up to be people's homes, that stretch of Main Street will be very nice.

[gc]

When all those old buildings are fixed up to be people's homes, that stretch of Main Street will be very nice.

Indeed.

[Wineguy2000]

Heavy machinery was brought in this afternoon. I asked the parking lot attendant about it and he said they were doing some soil testing because they were about to start the residential project.

[gc]

killer...thanks for the update

[clipper]

That's all fill dirt in that location. The old Metropolitan Savings building was there and it had two deep basements.

[barrycb]

I assume you mean the lot between the Gulf States and the Davis? Does that make it more expensive to build vertically on that lot?

[drumguy8800]

the heavy machinery is going to be working on which lot? the parking lot? or ... gulf states.. or.. whaa?

[geosophy]

I hear the Davis Lot is back to the Tiff board this week! Maybe something good will come of this meeting. Keep your fingers crossed.

[gc]

I presume for a parking garage?

[jsoto3]

Have they already removed the equipment? I didn't see any.

[geosophy]

That's what they are STILL trying to get money together for. I would prefer a nice park personally. :)

[Wineguy2000]

its gone now. They were checking the ground against the west side of the Gulf States Bldg

[gc]

New owners still plan to turn vacant tower into apartments
10:39 PM CDT on Sunday, August 15, 2004
By STEVE BROWN / The Dallas Morning News
http://www.dallasnews.com/sharedcontent/dws/bus/stories/081604dnbusgulfstates.b4b9a.html

A vacant downtown office tower has been sold to new owners who plan to develop it into apartments. Dallas-based Spectrum Properties bought the 16-story Gulf States Building at Main and Akard streets from a real estate partnership that spent two years working on plans to turn the derelict building into lofts.

Spectrum – which owns retirement and apartment communities – is sticking to those plans. "We put out bids for the building façade restoration this week," said Spectrum president Brian Bergersen. "I hope to be started on construction no later than October."

Spectrum intends to build about 60 apartments in the brick-and-stone tower, which has been empty for about 20 years. Built in 1927, the Gulf States Building was enlarged by six stories in 1935 to accommodate the offices of lead tenant Gulf States Security Life Insurance Co. By the 1970s, the building had lost its appeal to office tenants because of the small floor sizes. Those long, narrow floors are perfect for residential units.

Investor Alice Murray – who spent almost two years working on the redevelopment – sold the high-rise to Spectrum Properties. Terms of the transaction were not disclosed. "The buyers have done projects in the mid-cities and North Dallas and want to get involved downtown in a big way," Ms. Murray said. Spectrum is a family-owned company that has been in business for more than a decade. It owns three local retirement communities, two apartment complexes and a medical building.

The downtown Dallas tax increment finance district is still seeking proposals to build a combination parking garage and retail building on the vacant Main Street lot between the Gulf States Building and the Davis Building. The Davis has already been converted into loft apartments. If the Gulf States project goes ahead, the Mercantile National Bank Building will be the last historic skyscraper along Main Street that hasn't been redeveloped.

[slfunk]

This is good news. I just wonder like someone else said what the resolution will be towards the parking requirements. Know there will have to be a parking agreement with someone in that area until final plans are made on the adjacent property.

[Wineguy2000]

Well At least we know that Spectrum has the capital to make this happen. Alice murray just didn't seem to have the capability.

[pariah]

great news, at least it is still a go.

[crescentboi]

This is from the Downtown This Week newsletter.

A $1,078,000 contract to begin conversion of the Gulf States Building (1415 Main) to 68 apartments and 5,000 square feet of retail space was also authorized by Council. Construction of the $11.4 million project is scheduled to begin this month and be complete in March 2005.

[crescentboi]

This is from the Downtown This Week newsletter.

CDA’s new CityPark program will provide grants to existing parking garage owners/operators for automated equipment and signage along with funds also allocated for lighting and safety improvements and a comprehensive marketing campaign. In exchange, the garages will offer $1/hour weekday parking and $2 parking evenings and weekends
Council also approved an $8.5 million agreement with the developers of 1407 Main Street, a $23 million project of over 500 parking spaces, 20,000 square feet of ground floor retail space and 87 apartments. Located between the Davis and Gulf States Buildings, the project is set to begin construction in January 2005.

[crescentboi]

over 500 parking spaces, 20,000 square feet of ground floor retail space and 87 apartments

I didn't realize that there was still plans for apartments to go right there. I knew that there was talks of it a year or two back, but thought that had died. Does anyone know how true this rendering below is to todays plans? I hope it's pretty close.

[drumguy8800]

Wow! new highrise apartment construction within the CBD. And that's a very weird way to do a rendering.. but I like the building. Do they plan on revamping the Gulf States building along with the project? I like how its flush against it.. but I'm not too sure about the large setback on the western side of the lot.

So.. lemme get this straight. The first one or two floors is retail, then its parking, then its apartments, and Gulf States is entirely apartments?