Plans for the Old Red Cross Building on McKinney!

[ibryant]

Great News!!

West Coast developer buying Red Cross building
10/07/2002

By STEVE BROWN / The Dallas Morning News

A West Coast developer is buying land at one of the busiest corners in Dallas' Uptown neighborhood.

Legacy Partners, a 30-year-old builder based in Foster City, Calif., has contracted to purchase the vacant Red Cross building at Pearl Street and McKinney Avenue.

The property is reportedly being sold for more than $60 per square foot – the highest price paid for Uptown property in recent months.

Legacy Partners will build a luxury apartment and retail complex on the three-acre site across from the Crescent, according to Richard Voelker, a Dallas partner with Legacy in several projects.

"We plan to close the purchase in November and put the pedal to the metal on design and development plans," Mr. Voelker said. "We want to come out of ground with construction in June and have our first units in the fourth quarter of 2004."

Legacy Partners plans to build the shopping center and apartments on top of underground parking, he said. The building would be about seven stories tall, with 25,000 square feet of retail and restaurant space and 250 luxury rental units.

"The retail really complements the residential, and there is already a lot of interest," said Mr. Voelker, who is working with broker Weitzman Group to find tenants for the project.

With its location between the Arts District and the entrance to the Dallas North Tollway, the Red Cross site has long been considered one of the best potential development locations in Uptown.

Like other Uptown developments – including the West Village project on McKinney and the proposed Victory complex closer to downtown – the Red Cross site development will be a hybrid urban building.

"We are trying to become a part of the Arts District in the design sense," Mr. Voelker said. "We want to have sculpture in the courtyard and a sophisticated design."

The low-rise building has been vacant for several years since the Red Cross relocated its Dallas office to the hospital district on Harry Hines Boulevard. The vacant property was acquired in 1999 as an investment by a partnership of Transcontinental Realty Investors of Dallas.

"It's probably the best site in Uptown," said broker Newt Walker, who has been marketing the property for sale.

Legacy Partners, one of the country's biggest apartment and commercial developers, has roots in the Dallas area.

The company started out as the West Coast division of Dallas apartment builder Lincoln Property Co. It later became a separate independent company.

Legacy Partners has developed more than $4 billion in residential and commercial real estate all over the western United States. It has about 10 offices nationwide.

In 2001, Legacy Partners opened a Dallas office and has since purchased two apartment properties in partnership with Mr. Voelker's REOC Corp.

[KelleyUSA]

This is great news, however, after reading the article this project does not excite me in the least!! I have always considered the old Red Cross building as "THE" premier site for development. This location provides probably the best views in all of downtown Dallas- coupled with its proximity to downtown, arts district and Victory. I firmly believe the site deserves a world class development (like the Vendome or Mayfair)- something that a 7 story structure just doesn't do for me. Think how different the City would look if the Mayfair was built on that site. That's my 2 cents!

[JaeTex]

I'll take the retail provided by the new plan. I'm not a big fan of single-use buildings a la Mayfair and Vendome. As a lot of Uptown seems to me like a suburban subdivision though more compact, with a different aesthetic, and closer in (see Gables and most Post properties, as well as the vacant lots disappearing for townhomes).

I live Uptown and love it, but I want variety. Seems like all these developers can't think ouside of the boxes they build. If they are apartment or townhome builders that is all they build, as a result most of the new development will not create more pedestrians just more drivers. But that's just my opinion.

[GarrettCarey]

I too am a fan of the mixed use development. I think it is important to have the street level retail to ensure it's success. But I will say that a seven story structure is not very impressive for such a perfect parcel of land. A 25/30 story tower would be fantastic!

[KelleyUSA]

I guess that's what I was getting at. I was looking more for a 30 story structure like the Mayfair with retail incorporated into the development. I think street level retail is very important along McKinney- and would be a nice compliment to The Crescent...

[metrosteve]

Completely agree with what each of you has said! You know, given that this company, Legacy, once was a part of the very huge 70's/80's commercial high-rise developers known as Lincoln Properites (with structures between 10-45 stories and a profile almost as regarded as Trammel Crow) it is odd that they wouldn't do a larger mixed-use project at this site. The Red Cross block has been under contract so many times that I've ehard of over the last 20 years its hard to believe that it might finally be a go. Hope they up the height. The zoning here is at least for 12 floors and probably 24,

[JaeTex]

Well we can stop debating good vs. best options, according to Steve Brown this morninig the sale to the guys planning residential with ground floor retail isn't happening.

The next most likely use for this prime site?...wait for it...an office building! Thank god, I was afraid they might bring actual people to the area and give them somewhere to go. I for one am tired of moderately interesting architecture and would rather have a glass box that is perfectly designed for holding more cars in one of the few neighborhoods that is pedestrian friendly.

(But I won't be too upset, given the good news re: downtown grocer also in today's paper).

[smontgomery]

This info might be dated, but I happened to be looking at the Real Estate Center at Texas A&M University site, and came across this ( I couldn't find the original article on DMN):

DALLAS, Tex. (DallasNews.com) – Plans by developer Cumberland Allegiance Development Co. to turn a Mrs. Baird’s Bakeries plant into luxury apartments have been cancelled because of rising costs. The 5.6-acre property on Mockingbird Lane and North Central Expressway is for sale.

Legacy Partners and partner Richard Voelker have decided to forfeit the earnest money they placed with a sales contract to buy the former Red Cross complex on McKinney Avenue. Original plans were to build a shopping center and apartment complex on the site. Transcontinental Realty Investors is looking for a new buyer.

[bloodandpopcorn]

So this is gone for sure? Any news on the... office building? Is it going to be some two-story ugly travesty, or some nice 5-10 story, beautiful thing that actually adds to the area?

[gc]

3/21/2003 - DMN

Developer Lincoln Property Co. is raising its stake in Dallas by planning two projects near the city's center.
Lincoln Property has contracted to purchase the vacant Red Cross building at Pearl Street and McKinney Avenue in Uptown.

Lincoln is studying plans for a high-rise office project on the tract. Located between the Arts District and the entrance to the Dallas North Tollway, the Red Cross site has long been considered one of the best potential development tracts in Uptown.

Several other developers have looked at building office, retail or residential projects on the site, which has been empty for several years. "This deal has probably the best shot of any of what has been proposed there," said broker Newt Walker, who has been marketing the site.

Also, Lincoln Property is representing drugstore chain Walgreen Co. in its plan to build a store in Oak Lawn at Cedar Springs Road and Oak Lawn Avenue.

The drug superstore and drive-in pharmacy would replace the vacant Luby's Cafeteria.

[Columbus Civil]

http://www.dallasnews.com/sharedcontent/dallas/business/stories/111203dnbusUptown.a4048.html

Retail center planned for prime Uptown site
Project near Crescent may eventually include apartments above shops


12:56 AM CST on Wednesday, November 12, 2003

By STEVE BROWN / The Dallas Morning News

A well-known shopping center developer is buying one of Uptown's most sought-after sites with plans to build a retail complex.

Steve Shafer is buying the block at Pearl Street and McKinney Avenue, across the street from the landmark Crescent complex.

Plans call for retailers to occupy the first level. A second phase may include apartments above the retail.



Randy Eli Grothe / DMN
Demolition of the stone and brick building formerly used by the Red Cross will begin in the next two weeks.
The site previously was home to the Red Cross regional headquarters.

Real estate broker Newt Walker, who is handling the sale, said Tuesday that demolition of the old stone and brick Red Cross building will begin in the next two weeks.

"A lot of people have tried to buy that site in the past and build something and have failed," Mr. Walker said "This time it's for real."

The high-traffic McKinney Avenue corner has been on the market for more than three years, priced at more than $60 a square foot. Transcontinental Realty has owned the land since 1999.

Other developers, including Lincoln Property, L&B Group, Hines Interests and Legacy Partners, have looked at the three-acre site.

All of those deals would have included high-rise office or residential buildings with retail space on the lower floors, Mr. Walker said.

Mr. Shafer, who's developed shopping centers throughout North Texas, plans a more modest structure.

"Our plan is to just build retail on one level – a regular shopping center," he said. "I have some really strong retailers who have been looking in the area for a long time.

"We are hearing from lots of restaurants, and banks and several high-end retailers," Mr. Shafer said. "This is as close as it gets in to an urban retail location in Dallas."

Shafer Property Co. has experience in the urban retail arena. The developer built the successful 88,000-square-foot Knox Park Village, which opened this year at the southwest corner of North Central Expressway and Knox Street.

And he's developing a second phase of Knox Park Village across the street at Central and Armstrong Avenue.

He plans to build about 40,000 square feet of retail space on the Red Cross site with surface parking.

"There is so much residential in Uptown that there is great buying power for retail," Mr. Shafer said.

Mr. Shafer and Mr. Walker are negotiating with several apartment developers that have expressed a desire to build on top of the shopping space.

"We've got multiple people interested in the air rights," Mr. Walker said. "They would put high-rise residential on top of the retail."

Mr. Walker said inquiries about the site began to pick up in recent months.

"We've had drugstores willing to pay for the entire site," he said. "All of a sudden we had three different banks calling."

The McKinney Avenue corridor has a sizable retail base, with free-standing restaurants and shopping centers located in the Crescent, in the West Village project and farther north in the Knox Street business district.

Brokers who work in the area say there will be hot demand for space on the Red Cross corner.

"It's an incredible urban site," said broker Jill Tiernan with Weitzman Group. "It will lease – absolutely. I just hope that architecturally they do something off the chart."

E-mail stevebrown@dallasnews.com

-------


Finally some concrete plans for this corner. I can't wait to see renderings -- I guess it all depends on what kind of residential they're planning. I hope it looks better than Knox Park Village.

[bloodandpopcorn]

I really hope that this is built with residential. As much as I like the idea of adding residential over simply one story shopping centers, I think it would be shortsighted for them not to simply wait until they have someone to handle the residential component and build it all at one time. For our building experts out there, is there any sense in doing retail first, then waiting, and adding residential?

[Kelley USA]

I'm afraid that this tract of land is not getting the development it deserves... If its going to look anything like Knox Park Village it will be a travesty!!!

[Columbus Civil]

Knox Park Village (http://www.callaway-architects.com/mixeduse.html#knox)

That would look terrible next to the Crescent.

[Kelley USA]

Just remembered that Shafer is also doing the re-design on the former Falk Fabric Store on McKinney Ave… He seems to be a big player in the area now! Has anyone seen the Falk Fabric building lately? Any update would be appreciated…

[Columbus Civil]

I've walked by it a couple of times this week. There are some holes in the wall on the north side of the building, as well as a few large mounds of dirt outside. I'll take a picture tonight after work if there is enough light.

I was wondering what they were doing there.

[Columbus Civil]

Ok..I found a short write-up on what's going on with the Falk Fabric building.

http://www.metcapital.com/press/DMN%20June%2013%20A%20redo%20for%20Falk.pdf

Probably old news that I missed.

[Kelley USA]

I read an extended article in the DMN that said the redo should be finished by December 1st and that 3 tenants have already been signed. Curious as to who they might be... But if you can get a few photos that would be great!

[tamtagon]

He plans to build ... with surface parking.

surface parking? what's up with that?

[aceplace]

I also saw red when I read that... the surface parking could be ok if the buildings come up to the property line, with storefronts opening up to the sidewalks, thus fostering pedestrian traffic. If the parking is in a lot adjacent to the sidewalk, that kills pedestrian traffic.

I think the city needs to look at this...

[214]

i totally agree with you KELLEY USA!!!

I HOPE THE BUILDING LOOKS AOMETHING LIKE THE CRESCENT AND NOT KNOX PARK VILLAGE!!!!!!!!

wasnt legacy partners suppose to be building a seven story building on this same site

[psukhu]

I have a bad feeling that this will be like the new Knox stip mall.

I guess the positive is that it won't be an empty lot anymore.

Ace, I agree. I hope the structure is right up on the street like the Hard Rock.

[Columbus Civil]

Re: Pics of Falk Fabric building. It was too dark when I got home to take any pictures. Will try at lunch today.

Don't think it will be finished by Dec. 1st.

[barrycb]

I have the same concerns about building not matching the potential of the sight. But they do seem to be moving fast. I drove by there last night and noticed a large tractor and a dump truck parked in the lawn.

[snooch]

People who move fast tend to be more concerned with bottom lines than aesthetic, so I hope this guy's had some nice plans tucked away in his pocket for a while. Judging from his Legoland approach to development, however, I'm not holding my breath.

I really hope this doesn't look like Knox Park Village.

[Kelley USA]

What's his hurry? If I purchased the land I would consider any and all possibilities- I would want to create something dynamic for the city- especially considering this site has some of the best views of DT. This site is prime for mixed-use- but I'm afraid Shafer does not have the vision!

[gc]

Has anyone noticed that about 3/4 of this building has been knocked down as of this morning around 9AM? This is a positive sign that this project will move forward and not a dead end. Let's just hope that it fits in well architecturally with the area.

[evdallas]

I noticed a sign that said retail coming soon this morning

[gc]

The building is gone. Has anyone heard anything new?

[clipper]

As of today it's going to be a drugstore, a bank and a Starbucks. That's it.

[Kelley USA]

clipper,

where did you get this information from? If true- I might kill myself before Christmas!!!!!!!!!!

[JaeTex]

that area needs another starbucks, it's like 3 blocks to the one at the post apartments.

[clipper]

They are offering to sell the air rights over the retail for apartments, but if that doesn't happen pronto they'll just go ahead with single-level retail.

[Columbus Civil]

I hope the drugstore has lots of parking in the front. Same for the proposed CVS at Lemmon & Cole.

[ibryant]

I agree whole-heartedly Columbus! They should also consider putting up a wall around the perimeter of the property, with just one access point that you can only pass through if your in a car...strike that...an SUV. This way we can keep all pedestrian activity away from the stores, ensuring that the potential for pedestrians to harm and/or get in the way of the SUVs is nill.

[Columbus Civil]

Hey, it works in the suburbs.

[Kelley USA]

Have we yet to confirm this? I did read an article that they had been approached by banks and drugstores- but they were not that interested in that sort of development... It's too bad- this could be a great place to attract high-end retail...

[tamtagon]

Just remember in the winter, far beneath the bitter snow, lies the seed that with the sun's love, in the spring, becomes the rose.

[barrycb]

Hey Bette,

What does that have to do with Knox Park reincarnated?

[crescentboi]

As far as a starbucks in that area, the Crescent Gourmet is going and starbucks is taking its place in the hotel.

[CTroyMathis]

Clipper, welcome to the forum. (And, thanks for the shitty news...heh. ;))

[barrycb]

Has anyone else noticed that demolition has stopped? One can only hope a stroke of vision has overtaken Shafer, and negotiations have begun on apartments over the retail.

[crescentboi]

I have noticed that. I'm somewhat happy about that because I was thinking of taking some stone to make a bookcase out of! Weird I know...I will be incredibly disapointed if it does turn out to be a single level shopping center like described. I think that it would be the smartest decision to build a large amount of apartments or even apts and condos on top. The view from that location would be absolutely amazing (1 selling point), it's in the heart of uptown (2nd point) near the crescent and museums (3rd point), they would fill that place up in no time if it was the right design, which i think will have a lot to do with it. when your neighbors are the crescent and the federal reserve bank, you have a lot to live up to.., agree?

[jsoto3]

Demolition appears to be going on as scheduled. I agree with you Crescent about the design of housing on that site (which I don't think will occur).

[Chevytexas]

I think you're all missing the point that a developer looks at in acquiring such a piece of property: income. That pathway is a feeder of everyone headed out of downtown to the tollway. They have no ability, at present, to pick up cleaning or drugs (ha-ha) until they get home, if they get home; the customer base for that property doesn't live anywhere near there.

That property has had its ups and downs for several years, not to mention the horrific Robinson land scam that allowed its neighbor, the famous Trinity Methodist Church, to burn to the ground, to be fodder for crappy restaurants like Salve!, now closed. That borderland of McKinney spine properties will take awhile, in this economy, to turn over again; in the meantime, the owner makes a ground-level income until they can resell or redevelop. Just exactly what do you think occupied that precious spine between Cedar Springs and Knox that you all love from above, anyway?
The only income earners now are banks (while they last) and drugstores; why do you think there's a gas station with a Dickey's Barbecue in it across from the Crescent? Economics is not made of highrises; it takes too long to get down in the elevators. You'll see a high-rise there, but not until the properties between it and the CBD have filled and even turned over -- most of us will be grey by then.

[jsoto3]

Poignant comments. Thanks for the different perspective.

[Chevytexas]

Sorry, I just re-read that post. It makes me sound like "Angry Old Man" (..."we hadda walk through the mud and snow annnnnd we LIKED it!"). I guess my point about that sector, which my family helped develop early in the last century, is a good example of how urban centers, whether planned for aesthetic showmanship, or economic potential, don't always go the way we wish they would. I have, for example, enjoyed the "soft" urban development of McKinney Avenue and adjoining properties toward Cedar Springs, as downtown and rather pointlessly above-ground freeways erased the buffer zone between traffic and pedestrian-friendly zones. I redeveloped some homes on Hibernia and other McKinney side-streets just because that neighborhood could support that kind of living. That sort of household isn't as voguish now, and by the time you could afford a house instead of an apartment, it wouldn't be anywhere along McKinney anyway.

We should encourage controlled growth, and exuberant support of the best architecture, but possibly less at the expense of re-use of structures that are already there. The ZaZa development is a good example: it replaced some structures that could have stayed. The Crescent, in contrast, was built on ground that had lain empty since the Fifties, with the exception of car lots. In each of these cases, the economy determined what would go there, moreso than esthetic, which changes almost as quickly. I didn't mean to rant.

[gc]

Design almost ready for Uptown center
Construction may start on McKinney retail property in 90 days
10:34 PM CST on Thursday, January 29, 2004
By STEVE BROWN / The Dallas Morning News

Developers are finalizing designs for a new Uptown shopping center on McKinney Avenue.

Shafer Property Co. plans to build a 34,000-square-foot retail center on the site of the former Red Cross Building.

"We're going to build our shopping center fronting on McKinney and Pearl," said developer Steve Shafer. "We're leaving [undeveloped] more than an acre on Routh Street."

Mr. Shafer, who's offering the Routh Street tract for sale with Newt Walker Co., said the company has gotten inquiries from office builders and residential developers.

"We are going to leave a tract where someone can put a high-rise."

Mr. Shafer said the tenants he's talking to for the McKinney Avenue project include two restaurants, a bank and "a men's clothing retailer from New York."

"The response has been very strong," he said.

"We are looking at $50 to $60 [per square foot annual] rents."

The developers will close on the land purchase today and plan to start construction in 90 to 120 days.

One of the architectural plans being considered for the retail center would "play off" the nearby Crescent complex, Mr. Shafer said.

"It will be a standard [single-level] shopping center but very high-end."

Shafer Property, which also built the Knox Park Village retail center on North Central Expressway, contracted to buy the vacant Red Cross Building in November.

Since then, the property has been cleared to make way for the new development.

E-mail stevebrown@dallasnews.com

[Kelley USA]

Well that makes me feel a bit better... I'm glad he's thinking high-end here!

[snooch]

This is sort of the reverse we're seeing here...build the ground floor retail first to attract the residential. Hee hee!