Preston Center

[dfwcre8tive]

At Preston Center, good things come in small package
Preston Center has lowest vacancy rates and highest rents
11:04 PM CST on Thursday, January 3, 2008
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com
http://www.dallasnews.com/sharedcontent/dws/bus/stories/010407dnbuspreston.29fc7c8.html

When it comes to office markets, good things sometimes come in a small package.

Take Dallas' Preston Center. The business district on the edge of University Park has less than 3 million square feet of office space. But the area has the lowest vacancy rates and highest rents in all of North Texas.

Real estate execs say the prime location and lack of building sites keep Preston Center on top of the market.

"That market has great demographics and a midtown location," said Barry Brown of Holliday Fenoglio Fowler LP. "And there are only a couple of development sites left."

Mr. Brown recently sold the 16-story Berkshire at Preston Center office tower to a Chicago pension fund.

"We got a broad field of interested buyers ranging from private investors who lived a half-mile from there to some of the country's largest institutional capital sources," he said. "Preston Center properties always draw great attention.

"We've marketed more than a half dozen properties there in the last few years," Mr. Brown said.

Like investors, real estate broker Staubach Co. picked Preston Center when it decided to build its own office headquarters. The company will trade a location in Addison next year for the new building at Douglas Avenue and Berkshire Lane.

"We looked at buildings all the way from our current location south to Uptown," said Paul Whitman, Staubach's president of Southwest Corporate Services. "We had folks who wanted to go down to Uptown because there is a lot of energy there and activity.

"But we still have lots of employees north of our current location and needed to be sensitive to everyone," he said. "Preston Center turned out to be a good compromise location."

Even more important, the address is easy for the company's clients to get to.

Staubach's seven-story building under construction next to the Guaranty Bank tower is the largest to go up in Preston Center in more than a decade.

"Development opportunities are certainly limited," Mr. Whitman said. "There are very few development sites in the area."

Surrounded by exclusive residential neighborhoods, the office and retail district – bounded roughly by the Dallas North Tollway, Northwest Highway, Pickwick Lane and Marquette Street – has the equivalent of about 16 blocks. Almost all of the office space is wedged between Preston and the tollway.

At the end of 2007, overall office vacancy in Preston Center was 9.3 percent. That's less than half the citywide vacancy, according to figures from Cushman & Wakefield of Texas.

And average office rents were $29.28 per square foot – highest in the region.

The top rents are because of "the location and convenience for entrepreneurs and professionals that live in the Park Cities and Preston Hollow area," said broker Dennis Barnes of CB Richard Ellis.

Construction of higher-priced buildings in Uptown is also sending some businesses to Preston Center, he said.

"We're seeing good activity from tenants in the Uptown submarket that are now looking at $30-plus rates, and – as you've heard – $40 at the Crescent," Mr. Barnes said. "This is a new trend. For years, as rates held firm and increased in Preston Center, tenants would look at Uptown, and now it has reversed."

No wonder investors are willing to bet millions on the market.

One of the largest building owners in the area – California-based BentleyForbes – recently announced upgrades to its three-building Preston Commons office complex.

"We plan to spend about $5 million in the next 12 to 24 months," said BentleyForbes CEO David Cobb.

BentleyForbes will make improvements to the exterior of the project, along with upgrades to the parking and landscaping. The biggest change will be construction of a signature restaurant in the 10-story tower on Preston Road.

"We are negotiating a lease with a restaurant tenant as we speak right now," Mr. Cobb said. "We just love that market, and our rents there have gone up by $4 per square foot in the last year or two."

More important is the lack of new competition.

"It may be the only section of Dallas where you can buy an office property and not worry about a developer building right next to it." Mr. Cobb said.

Some construction is on the horizon.

Along with the Staubach building, developer and investor R.M. Crowe Co. has plans for an office high-rise to be built at the corner of Luther Lane and the tollway. The building would occupy land now used for surface parking.

And at Douglas and Weldon Howell Parkway, Houston developer Hines is working on plans for a residential tower. The 10-story luxury condo project would replace a motor bank.

"We can build up to 115 units in total," said Hines spokeswoman Kim Jagger. "Subject to pre-sales, we would estimate breaking ground in the fourth quarter of 2008 or the first quarter of 2009."

[FriscoRocks]

I wonder if Preston Center will ever develop as a pedestrian friendly area? Seems logical, but its not really happening now.

[jelf]

Good point. They can start by fixing the stairs from the upper level parking.

[Phillip]

I wonder if Preston Center will ever develop as a pedestrian friendly area? Seems logical, but its not really happening now.
Preston Center is already more pedestrian-friendly than most other developments in its kind in Dallas. I think it would be cool if it became Dallas's second downtown/central business district. They're already building yet another office building in front of the Guaranty Bank tower. The whole area really reminds me of a smaller, less pedestrian-oriented version of Clayton, MO, which is the St. Louis area's second downtown and the county seat of St. Louis County (the city of St. Louis is not part of the county). There's also similar situations in other states such as White Plains, NY, serving as a suburban downtown for New York City and the central focal point of Westchester County. Westwood, in Los Angeles, is also a good example.

But you're right, Preston Center could use a little improvement on pedestrian friendliness. However, I like that the area has gotten to develop itself and integrate with the neighborhood, rather than many projects these days, which have their own private streets and are really just management-controlled shopping centers in disguise. Seeing two-story big box stores with garage/street parking is a nice change from the typical one-story deal with a giant surface parking lot. Preston Center has a lot going for it...it just doesn't seem to get a lot of attention.

[texcolo2]

Does it still have that 2 storey parking garage in front of the old Sangar-Harris / Foley's Dept store? They should bury the garage and put in a park or something instead. That's a whole block to work with right there.

[incrediculous]

texcolo, you should probably know that your sig is too big. it's the primary feature on every page you post.

[dfwcre8tive]

Houston developer plans high-rise condos in Preston Center
11:46 AM CDT on Thursday, October 30, 2008
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com
http://www.dallasnews.com/sharedcontent/dws/bus/stories/103108dnbusterranova.163316a51.html

Randall Davis is looking for about 40 people who would like to live in a high-rise condominium.

That can be tough sell in today’s housing market, but the Houston developer has an edge.

His location in Preston Center near University Park seems to be a winner with potential buyers.

“Our phone has been ringing since we recently put a sign up,” said Mr. Davis, who’s teamed up with developer Hines to work on the Douglas Avenue project.

Allie Beth Allman & Associates is marketing the project.

The nine-story Terranova building would be the first residential high-rise built in Preston Center in more than a decade.

But first Mr. Davis has to round up prospective buyers.

“We’ve already taken five ($5,000) deposits,” he said. “I’m trying to get a sales center built and open before Valentine’s Day.

“I believe that most of our buyers will come from the Park Cities,” he said. “These people are looking to move out of their four- and five-bedroom house and down size.

To drive home that point, Terranova takes its Mediterranean design cues from Highland Park Village and other historic buildings in the area, Mr. Davis said.

Planned units range in size from 1,400 to about 4,400 and sell for more than $450 per square foot.

The developers hope to begin the project next summer, and it will take more than 18 months to complete.

...

http://www.dallasnews.com/sharedcontent/dws/img/10-08/1031terraLG.jpg

[gchrisbailey]

Oh come on, I thought it was a real "high rise"...read the article with excitment, hoping for a Cityplace-like tower, then saw the rendering...

[vman]

It looks better than most of the faux Mediterranean stuff being thrown up in Uptown. I kinda like it and it will fit in well with the architectecture of Preston Center.

[Double Wide]

i like it

[freewaytincan]

I'm already bored with it.

[I45Tex]

Tulsa has a very much cooler building finished in 2007 or so:
http://www.uticaplace.com/

[I45Tex]

Randall Davis has a good rep in the Houston development circles for doing lucrative deals, but a bad name for mistaking what it is that people actually value a neighborhood for. If you care to look up pictures, "The Gotham" and "The Renoir" in River Oaks are regrettable, "The Manhattan" across from the Transco Water Wall is doubly so, and "The Sonoma" ironing the creases out of Rice Village is almost-stalled.

[aygriffith]

It looks better than most of the faux Mediterranean stuff being thrown up in Uptown. I kinda like it and it will fit in well with the architectecture of Preston Center.

It looks like Gables Villa Rosa with 5 more floors... No difference. Not bad but its not really different.

[vman]

It looks like Gables Villa Rosa with 5 more floors... No difference. Not bad but its not really different.
We'll agree to disagree. I just know I didn't want to vomit when I saw this rendering, the way I start to heave everytime I drive pass Villa Rosa. :2lol:

[Milkman Dan]

It looks like Gables Villa Rosa with 5 more floors...Exactly my first thought also.

Looks like an amalgamation of medieval (cold, gray building stone - and .. what is that ?? a turret?!?) and faux-mediterranian (light stucco and red tile roof). Don't like it. I am not in design or an architect, though. Someone educate me who is learned in those arts.

Just looks disjointed and ... unfinished?

[aygriffith]

Exactly my first thought also.

Looks like an amalgamation of medieval (cold, gray building stone - and .. what is that ?? a turret?!?) and faux-mediterranian (light stucco and red tile roof). Don't like it. I am not in design or an architect, though. Someone educate me who is learned in those arts.

Just looks disjointed and ... unfinished?

Looks better than the previous posters thing in Tulsa, when i looked at the Tulsa building all could say is... Is that the best side you can photograph?

[chiboi]

Plus the Dallas project automatically has a huge advantage, just because it is Dallas and well, the other is Tulsa.

[INTX dave]

Although I do not really care for this building's design, it is not terrible or unlike several projects along Turtle Creek or in Uptown. It will likely appeal to some Park City-ites (many new McMansions have a similar style).

When I first heard of the Randall Davis development I cringed a little, given some of his projects I have seen in Houston.

Of course I am no architect and am not familiar with every project, but developments such as Gotham and the Metropolis appear so overwrought with inconsistent details that they appear simply garish (gargoyles? - see randalldavis.com and click on Sold Out). These buildings would fit in very well on the Las Vegas strip.

I remember Austin fought vigorously a few years ago to keep a similar project from being built across from downtown on Town Lake. We should keep a similar vigilance here.

Randall Davis probably delivers a fine product, or he would not have achieved the success he has. However the exterior is something all of the rest of us have to live with, so we should make sure any new projects are developed with generally tasteful standards to avoid any potential long term eyesores.

[Uptown72]

^I don't see tasteful standards on this project. Look at any new urbanism standards with townhome or flat concepts from the NE to the NW coast. What this project needs is street-level presence with courtyards here and there, an aspect of porches (really just raised areas verses a front doors truely at street-level), floor-to-ceiling windows, use of similar qualities/styles of real estate in the surrounding area (I guess you could use the tudor-style feel of a lot of the remaining 1940's homes in UP) and possibly rooftop landings (which it seems this one actually does have). It's too flat of a facade and would not promote anyone wanting to live on the ground floor. The round towers are also awful. I only hope that there are some zoning issues to consider, so we can change the look of this awful, knock-off, mediterranean castle.

[SDORN]

I like it!

[dfwcre8tive]

Bush picks Preston Center high-rise for Dallas office
09:21 AM CST on Thursday, January 15, 2009
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com
http://www.dallasnews.com/sharedcontent/dws/bus/stories/011609dnbusbushoffice.5dd937a.html

President George W. Bush will have a short commute from his North Dallas home to his new private office.

The General Services Administration said Wednesday that it's leased the soon-to-be-former president an 8,000-square-foot space in a Preston Center high-rise.

The Sherry Lane Place tower is just east of the Dallas North Tollway and less than 3 miles from the house the Bushes own in nearby Preston Hollow.

The government is paying almost $39 per square foot for a 10-year lease in the building.

...

[SDORN]

what is he going to be doing there!?

[AndyIvey]

what is he going to be doing there!?
What do other presidents do in their offices? Clinton seems to have stayed out of trouble, but I remeber his office lease being a source of controversy for a short while. I'd rather not know what Carter spends his day doing.

[dtdresident]

So we're paying $312K a year for this office space?

[downtownguy25]

Its about the same as taxpayers pay for clintons office space, also part of the office space is used be secret service.

http://www.globest.com/news/1327_1327/dallas/176340-1.html

[mrgrieves]

What do other presidents do in their offices? Clinton seems to have stayed out of trouble, but I remeber his office lease being a source of controversy for a short while. I'd rather not know what Carter spends his day doing.
I think Carter spends most of his time either building houses, or recruiting people to build houses.

[Uptown72]

$39 psf when the market for that building is about $29. I hope Bush got the landlord to put in a bundle of upgrades; otherwise, he just paid way over market for space...or did WE just pay over market? Do our taxes pay from x-pres items such as this?

[AeroD]

Say what you will about Our Fearless Leader, but let's not all get riled up about $312K out of a nearly $3 trillion budget.

[aygriffith]

I would venture to say Clinton's office space in beautiful Harlem probably costs alittle more... Lets not go down the road of Bush bashing... And when Obama gets out and picks office space in downtown Chicago I think you might see multiples of what Bush will be paying for this space.

We're already seeing that with the inaguration, I laugh becuase I remember a NYT article talking about the high price of Bush's 2nd term inauguration. Which i believe is 1/5th of the price of next weeks 09 swearing in.

[freewaytincan]

We're already seeing that with the inaguration, I laugh becuase I remember a NYT article talking about the high price of Bush's 2nd term inauguration. Which i believe is 1/5th of the price of next weeks 09 swearing in.

It's always so good to see the federal government being a real role model of financial responsibility.

[Ersatz]

This isn't anything new. President Bush had offices here in the early nineties before he was even Governor or Texas. Returning back home to where he was before he left the private sector. And comparing Bush's office building to the 60th floor Penthouse of Carnegie Hall Tower that Clinton wanted is laughable. Light years apart in both cost, stature and view. CHT was something like $350 sq.ft.

Carnegie Hall Tower (http://carnegiehalltower.com/)

[Ersatz]

I think Carter spends most of his time either building houses, or recruiting people to build houses.

You mean Carter is busy building crappy "shanty town" type houses that crumble and fall apart. How nice of him.

HABITAT (http://www.timesonline.co.uk/tol/news/world/us_and_americas/article5439388.ece)

[freewaytincan]

You mean Carter is busy building crappy "shanty town" type houses that crumble and fall apart. How nice of him.

HABITAT (http://www.timesonline.co.uk/tol/news/world/us_and_americas/article5439388.ece)

Glad others see it for what it is: the newest form of slums, picking up where the projects left off.

[Ersatz]

YES! But unlike projects, every one involved FEELS so GOOD about what they are doing.

[freewaytincan]

YES! But unlike projects, every one involved FEELS so GOOD about what they are doing.

Hey, whatever it takes to feel good. And it doesn't matter what the outcome is, so long as you feel good.

[sterling]

Trash talking about Preston Center AND managing to bash low cost housing built by volunteers at the same time. And the beat goes on...

[Ersatz]

Who's bashing Preston Center?

[freewaytincan]

Trash talking about Preston Center AND managing to bash low cost housing built by volunteers at the same time. And the beat goes on...

It's not "low cost housing built by volunteers," it's a two pronged approach to keeping "those kinds of people where they belong" (that's called building slums) and a chance for celebrities to look good. Want to see how to really give people a good place to live, a chance to improve theirs and their family's lives, and improve existing neighborhoods? I can personally recommend you to a place called Staunton, Virginia. There is a stark contrast between what certain forward thinking and rather kind-hearted individuals are doing in an old Victorian neighborhood and the suburban-style disaster that is Habitat for Humanity's project in that town.

[F4shionablecHa0s]

It's not "low cost housing built by volunteers," it's a two pronged approach to keeping "those kinds of people where they belong" (that's called building slums) and a chance for celebrities to look good. Want to see how to really give people a good place to live, a chance to improve theirs and their family's lives, and improve existing neighborhoods? I can personally recommend you to a place called Staunton, Virginia. There is a stark contrast between what certain forward thinking and rather kind-hearted individuals are doing in an old Victorian neighborhood and the suburban-style disaster that is Habitat for Humanity's project in that town.
You've gotta be kidding me...

[aygriffith]

Well Preston Center aside, I'm pretty much in support of anything that spreads light on the many flaws perpetuated by the Carter famliy. Everything he touched durring his presidency was a wreck in ways you could NEVER compare to George W Bush's 2008 collapse and to Clinton's Tech Bust. Anyone remember their mortgages being 22 percent in 1980? It was miserable, what we are experiencing now is not half as bad as it was back then...

So when does GW move into the new office? I suppose they are going to be in Crawford for awhile till the house is fully ready.

[tamtagon]

Terranova still on track, seemingly:

http://www.pegasusnews.com/news/2009/jun/09/terranova-condominiums-new-high-rise-dallas-presto/


Terranova Condominiums, new high-rise in Dallas’ Preston Center, hires director of sales

By Pegasus News wire

DALLAS ... ... ...Terranova, inspired by the Italian resort of the same name, is a joint venture between Randall Davis and Hines. Offering one-, two-, and three-bedroom luxury homes in the heart of Preston Center in Dallas, Terranova was already 25 % reserved prior to the Sales Center opening in May. Visit the property Web site, or contact Brenda Calvin at the Sales Center 214-363-9463.
...
Terranova is a nine-story boutique high-rise condominium, containing 42 homes on eight floors.
...
Construction of Terranova is projected to begin summer 2009, with completion and first move-ins anticipated for late 2010. Terranova will occupy the site located in the 8100 block of Douglas Avenue, at Weldon Howell Pkwy.

[I45Tex]

And

"[the new sales director (http://networking.bizjournals.com/post/Groups/bizwomen/blog/terranova_welcomes_international_highrise_expert_b renda_calv.html)] 'wrote a monthly high-rise column for a well-respected on-line real estate magazine,' said Kyle Crews, VP of Allie Beth URBAN. 'She freely shared her high-rise expertise and chronicled her many trips overseas, highlighting the newest concepts in the high-rise arena...'
... Offering one, two and three bedroom luxury homes in the heart of Preston Center in Dallas, Terranova was already 25 percent reserved prior to the Sales Center opening in May."