Quiz03
10 February 2003, 02:02 AM
Ware to resurrect Lakes of Arlington
Deal knocks Arlington site from competition for Cowboys' stadium; homes, gas drilling among plans
Christine Perez Staff Writer
ARLINGTON — Real estate developer Sam Ware, known for tackling complicated projects, may be embarking on his most ambitious endeavor yet with the planned acquisition of The Lakes of Arlington, a 1,950-acre tract that the city had targeted for a new football stadium for the Dallas Cowboys.
That may not be a bad thing, according to Craig Richard, president of economic development for the Arlington Chamber of Commerce, who said the property wasn't a very viable site for a NFL football stadium anyway.
"Some of the challenges of the site, such as infrastructure and transportation issues, would make it very difficult to do that type of development," Richard said. "Sam's plan capitalizes on its location in the Metroplex, as well as the natural amenities available there."
Richard and Dallas Cowboys spokesman Brett Daniels said other Arlington sites are still under consideration for the stadium, but neither would identify other potential sites.
Daniels said The Lakes of Arlington was a site "that we looked at. I don't know that anything has been taken off the list."
Ware is planning a mixed-use development for the property, the largest undeveloped land mass in Arlington. The property is south of Trinity Rail Express between F.M. 157 and State Highway 360.
Because it sits at the southern tip of the Barnett Shale — a vast underground natural gas reserve that extends beneath 10 counties, including Tarrant — he also hopes to drill for gas.
Ware has the land under contract, putting up "seven-figures-plus" in earnest money. In doing so, he will try to succeed where others have failed. Past owners have spent tens of millions of dollars on infrastructure at The Lakes of Arlington, trying at various times to launch entertainment, residential and industrial projects.
The Lakes of Arlington sits at the virtual center of the Metroplex, about three minutes away from The Ballpark at Arlington, less than 10 minutes from Dallas/Fort Worth International Airport and about 20 minutes from both downtown Dallas and Fort Worth. Only about 700 to 800 acres of the tract are developable, with 10 lakes covering the remaining acreage.
Ware's plans, developed by Fort Worth-based Carter & Burgess Inc., carve out 335 acres for single-family homes, 42 acres for condo and multifamily projects, 158 acres for light industrial space, 100 acres for upscale retail, 34 acres for community services and 27 acres for future development.
"This is a large property so it's very important that we have the right uses there," Richard said. "We think there is an opportunity for executive-level housing and upscale retail, and some nice commercial development. Sam sees this, and that's what makes this project so exciting."
Ware has not yet identified where potential gas wells might be located. He said he would work with partners to determine how, where and when to proceed.
Roger Venables, senior real estate representative for the city of Arlington, said drilling has not yet occurred within city limits. However, the Arlington City Council on Jan. 7 approved rezoning the city-owned 556-acre landfill off F.M. 157 — immediately west of Ware's project — with the hopes of drilling for natural gas on the site.
The city would sell royalty interests at the landfill to a producer by executing an oil and gas mineral lease in which the city and the producer would share in the mineral interests extracted from the wells.
Venables said natural gas drilling is happening all around Arlington in unincorporated areas. Rezoning the landfill as an industrial manufacturing site will allow for drilling on the property.
Bill Middleton, with Premium Resources II L.P. in Dallas, said it's unknown how much wells on the landfill property would produce.
"We don't like to speculate what may or may not be there, however, we do anticipate that there is a commercial gas play there," he said.
Each vertical well costs between $500,000 to $600,000 to drill, and a producer would want to earn 2 1/2 to 3 1/2 times its investment to make it worthwhile, he said.
Ware said the opportunity to drill at The Lakes of Arlington adds to its appeal.
"Billions and billions of dollars worth of natural gas have been discovered and extracted from the Barnett Shale over the past decade," he said. "The potential to combine real estate development with the potential gas play at The Lakes of Arlington is very exciting because it's so unique. I'm thrilled to have the opportunity to combine the two."
Long, sordid history
The Lakes of Arlington was named by developer Jim Salim, who purchased what was then a 2,225-acre tract in 1992. Salim first planned to build an entertainment complex on the site, but switched to a residential and golf project in the mid 1990s. He spent $14 million over a six-year period, putting in water and sewer lines and trying to reclaim flood plain.
Salim bailed out in the fall of 1998, selling The Lakes of Arlington for stock in Orlando, Fla.-based Golf Communities of America. A year later, work on the project was halted when Golf Communities filed for bankruptcy. The company's lender, Credit Suisse First Boston, assumed control in 2000.
CSFB scrapped the residential concept and began to pursue warehouse and other industrial development. But with climbing vacancy rates in Arlington's Great Southwest Industrial District, it couldn't find a taker.
Land broker Rex Glendenning, who had been watching the property with interest, approached Sam Ware about buying it several months ago. He then put Ware in touch with CSFB and brokered the deal.
"It was the right time and the right price," he said. "The Lakes of Arlington is like the hole in the doughnut of the Metroplex, and I thought it would offer a unique opportunity for someone who had vision and good ol' American entrepreneurial blood flowing through their veins, and the financial wherewithal — like Sam."
Ware has gained a reputation in recent years for high-profile turnarounds.
"One man's junk is another man's treasure," he said.
In late 1999, he bought the former Prestonwood Town Center from TrizecHahn for about $20 million, then sold it a year later for $60 million to Archon Group, an affiliate of Goldman Sachs & Co.
In 2000, he paid the Greater Dallas Chamber $5 million for a 16-story, 171,000-square-foot office tower at 1505 Elm St. The tower is being redeveloped into about 70 luxury condominiums and will have an appraised value of more than $30 million when the conversion is complete.
Last year, Ware received approval from the Dallas City Council to form the city's first municipal utility districts as part of his plans to transform former Gov. Bill Clements' cattle ranch near Forney into a master-planned community called Travis Ranch. At full build-out, the 2,400-acre project will include 6,000 to 7,500 homes and have a taxable value of $1.5 billion to $2 billion.
Ware said he hopes to have zoning approval for The Lakes of Arlington within 90 days and start construction sometime this summer. He also is talking with the city about getting tax increment financing for the project. He has until July to close on the land. TIFs capture taxes paid on the appreciated value of property for reinvestment in the TIF zone.
"To be able to benefit from past failures and be the beneficiary of a lot of lost money — those kind of opportunities don't come around a lot anymore, especially in post-RTC days," Ware said. "There are a lot of smart developers and investors in this town, so it is viciously competitive.
"Of all the projects I've done, I am deeply enamored with The Lakes of Arlington," he added. "The best thing about it is its potential."
Contact DBJ writer Christine Perez at cperez@bizjournals.com or (214) 706-7120. Staff writer David Wethe contributed to this report.
© 2003 American City Business Journals Inc.
Web reprint information
All contents of this site © American City Business Journals Inc. All rights reserved.
Deal knocks Arlington site from competition for Cowboys' stadium; homes, gas drilling among plans
Christine Perez Staff Writer
ARLINGTON — Real estate developer Sam Ware, known for tackling complicated projects, may be embarking on his most ambitious endeavor yet with the planned acquisition of The Lakes of Arlington, a 1,950-acre tract that the city had targeted for a new football stadium for the Dallas Cowboys.
That may not be a bad thing, according to Craig Richard, president of economic development for the Arlington Chamber of Commerce, who said the property wasn't a very viable site for a NFL football stadium anyway.
"Some of the challenges of the site, such as infrastructure and transportation issues, would make it very difficult to do that type of development," Richard said. "Sam's plan capitalizes on its location in the Metroplex, as well as the natural amenities available there."
Richard and Dallas Cowboys spokesman Brett Daniels said other Arlington sites are still under consideration for the stadium, but neither would identify other potential sites.
Daniels said The Lakes of Arlington was a site "that we looked at. I don't know that anything has been taken off the list."
Ware is planning a mixed-use development for the property, the largest undeveloped land mass in Arlington. The property is south of Trinity Rail Express between F.M. 157 and State Highway 360.
Because it sits at the southern tip of the Barnett Shale — a vast underground natural gas reserve that extends beneath 10 counties, including Tarrant — he also hopes to drill for gas.
Ware has the land under contract, putting up "seven-figures-plus" in earnest money. In doing so, he will try to succeed where others have failed. Past owners have spent tens of millions of dollars on infrastructure at The Lakes of Arlington, trying at various times to launch entertainment, residential and industrial projects.
The Lakes of Arlington sits at the virtual center of the Metroplex, about three minutes away from The Ballpark at Arlington, less than 10 minutes from Dallas/Fort Worth International Airport and about 20 minutes from both downtown Dallas and Fort Worth. Only about 700 to 800 acres of the tract are developable, with 10 lakes covering the remaining acreage.
Ware's plans, developed by Fort Worth-based Carter & Burgess Inc., carve out 335 acres for single-family homes, 42 acres for condo and multifamily projects, 158 acres for light industrial space, 100 acres for upscale retail, 34 acres for community services and 27 acres for future development.
"This is a large property so it's very important that we have the right uses there," Richard said. "We think there is an opportunity for executive-level housing and upscale retail, and some nice commercial development. Sam sees this, and that's what makes this project so exciting."
Ware has not yet identified where potential gas wells might be located. He said he would work with partners to determine how, where and when to proceed.
Roger Venables, senior real estate representative for the city of Arlington, said drilling has not yet occurred within city limits. However, the Arlington City Council on Jan. 7 approved rezoning the city-owned 556-acre landfill off F.M. 157 — immediately west of Ware's project — with the hopes of drilling for natural gas on the site.
The city would sell royalty interests at the landfill to a producer by executing an oil and gas mineral lease in which the city and the producer would share in the mineral interests extracted from the wells.
Venables said natural gas drilling is happening all around Arlington in unincorporated areas. Rezoning the landfill as an industrial manufacturing site will allow for drilling on the property.
Bill Middleton, with Premium Resources II L.P. in Dallas, said it's unknown how much wells on the landfill property would produce.
"We don't like to speculate what may or may not be there, however, we do anticipate that there is a commercial gas play there," he said.
Each vertical well costs between $500,000 to $600,000 to drill, and a producer would want to earn 2 1/2 to 3 1/2 times its investment to make it worthwhile, he said.
Ware said the opportunity to drill at The Lakes of Arlington adds to its appeal.
"Billions and billions of dollars worth of natural gas have been discovered and extracted from the Barnett Shale over the past decade," he said. "The potential to combine real estate development with the potential gas play at The Lakes of Arlington is very exciting because it's so unique. I'm thrilled to have the opportunity to combine the two."
Long, sordid history
The Lakes of Arlington was named by developer Jim Salim, who purchased what was then a 2,225-acre tract in 1992. Salim first planned to build an entertainment complex on the site, but switched to a residential and golf project in the mid 1990s. He spent $14 million over a six-year period, putting in water and sewer lines and trying to reclaim flood plain.
Salim bailed out in the fall of 1998, selling The Lakes of Arlington for stock in Orlando, Fla.-based Golf Communities of America. A year later, work on the project was halted when Golf Communities filed for bankruptcy. The company's lender, Credit Suisse First Boston, assumed control in 2000.
CSFB scrapped the residential concept and began to pursue warehouse and other industrial development. But with climbing vacancy rates in Arlington's Great Southwest Industrial District, it couldn't find a taker.
Land broker Rex Glendenning, who had been watching the property with interest, approached Sam Ware about buying it several months ago. He then put Ware in touch with CSFB and brokered the deal.
"It was the right time and the right price," he said. "The Lakes of Arlington is like the hole in the doughnut of the Metroplex, and I thought it would offer a unique opportunity for someone who had vision and good ol' American entrepreneurial blood flowing through their veins, and the financial wherewithal — like Sam."
Ware has gained a reputation in recent years for high-profile turnarounds.
"One man's junk is another man's treasure," he said.
In late 1999, he bought the former Prestonwood Town Center from TrizecHahn for about $20 million, then sold it a year later for $60 million to Archon Group, an affiliate of Goldman Sachs & Co.
In 2000, he paid the Greater Dallas Chamber $5 million for a 16-story, 171,000-square-foot office tower at 1505 Elm St. The tower is being redeveloped into about 70 luxury condominiums and will have an appraised value of more than $30 million when the conversion is complete.
Last year, Ware received approval from the Dallas City Council to form the city's first municipal utility districts as part of his plans to transform former Gov. Bill Clements' cattle ranch near Forney into a master-planned community called Travis Ranch. At full build-out, the 2,400-acre project will include 6,000 to 7,500 homes and have a taxable value of $1.5 billion to $2 billion.
Ware said he hopes to have zoning approval for The Lakes of Arlington within 90 days and start construction sometime this summer. He also is talking with the city about getting tax increment financing for the project. He has until July to close on the land. TIFs capture taxes paid on the appreciated value of property for reinvestment in the TIF zone.
"To be able to benefit from past failures and be the beneficiary of a lot of lost money — those kind of opportunities don't come around a lot anymore, especially in post-RTC days," Ware said. "There are a lot of smart developers and investors in this town, so it is viciously competitive.
"Of all the projects I've done, I am deeply enamored with The Lakes of Arlington," he added. "The best thing about it is its potential."
Contact DBJ writer Christine Perez at cperez@bizjournals.com or (214) 706-7120. Staff writer David Wethe contributed to this report.
© 2003 American City Business Journals Inc.
Web reprint information
All contents of this site © American City Business Journals Inc. All rights reserved.