DTD Residential Conversions

[GarrettCarey]

First, I wanted to say that this forum has been all too quiet lately!

Second, I wanted to say that the residential conversion progress seems to moving along very well for the following downtown properties:
- Davis Building (183 units)
- Jackson Street Lofts (8 units)
- 1505 Elm Condos (67 units)

It is exciting to see the lights on in those buildings that have been dark for so many years! From my balcony, I can see both the Davis and 1505 Elm buildings.....the view is so different with the lights on! wooooohoooo!

go dallas!

[metrosteve]

Agree with you totally on this one. Another big project is soon to be announced for downtown--that's all I can say right now.....

[ibryant]

If you don't mind me asking, who do you work for metrosteve??

[GarrettCarey]

Ahhh, a less controversial topic.

How soon will we hear an announcement? what hints can you give us all?

[bloodandpopcorn]

I too am very curious about this... is this something very fresh, or something that has been being worked on for a while? At least drop a few hints (if you are able to) to keep out appetites wet?

[geosophy]

The Dallas Power and Light building is starting soon and we are super excited to bring it back! That is one of the other major developments!

[bloodandpopcorn]

Can you give us any specific dates on DP&L? Or how much retail (if any) you're going to try and put in? Thank you so much for visiting the forum and keeping us informed!!

[geosophy]

Currently we are finalizing finish out plans for DP&L. We will have slightly different finish outs in the two plans. As far as retail space, we will have the majority of the first floor of both buildings for retail. The 2nd floor of the 2 story section will most likely be lease by a prominant hotel in the area for banquest space. What else you want to know? :)

[bloodandpopcorn]

Thank you so much for the quick reply... There really isn't all that much to ask right now! This is excellent, actually being able to get information from a source and not speculate about everything!

I do have one small question... there was talk of creating a 'stone street gardens' type area... do you still hope to do something of that nature?

Thanks again!

[geosophy]

On Browder Street Mall we are planning to do a very similar type area granted we find the right retailers. We have a great space there. You had asked earlier about starting. We have already started some demo work, but hope to start the majority in late January to early February.

[CTroyMathis]

Thanks for your insight and info, geosophy! And, welcome to the forum.

[jsoto3]

Geosophy,

Thanks for the info. I am curious to know what your role in the project is. Also, who is the architect?

[gc]

geosophy, thanks for the info.

Are there other developments that are not covered here in the forum?

[geosophy]

You were aksing my role in DP&L and Davis. I am the building manager for Pace Realty which is the managing agent for the projects. Also, I am doing consulting work with BGO on the DP&L.

Another post was added asking about other projects. Unfortunatelty, I think the Merc is falling through. Rumors are floating that Spire is trying to offload it because a million square feet is hard to rehab. Also, Alice Murray is working on her plans to revive the long vacant Gulf States Building. If anything happens downtown, we need to see GSB worked on heavily. It is a sad sight now.

[Columbus Civil]

Unfortunatelty, I think the Merc is falling through.

No way.

[geosophy]

From what I understand, Spire is trying to sell the Merc for 9 million, which is 5 million over the cost they paid. BGO had some great designs for the rennovation. I pray that it happens in some form. The building could house some major retail anchors if they could find the right backers. Gosh, I wish I had that kind of money!

[tamtagon]

I bought this for 4, now I want to sell it for 9. It's such a great thing, you should really buy it for 9. Thank you.

[geosophy]

LOL! Hey I love the building and if I had 9 mill I would do it in a heartbeat. :)

[tamtagon]

So, the goal here is an ongoing estimate of the residential population of the CBD. Please suggest corrections to the assumptions, and complete the pending projects list to ensure as accurate a picture as possible.

Dec 2003 estimated residential population 3,000 (includes Davis building).

Pending conversions/new construction of residential units:
Republic Bank - 227 units
Union Tower - 499 - proposed
Dallas P&L - 154
Interurban - 118
Gulf Stats bldg - 60
1414 Elm St - 8
1001 Ross (Fram) 200

subtotal of additional units - 1266
assume 1.75 residents per unit - 2215 potential new residents;
assume upon completion each listed project becomes 80% occupied - 1772 actual residents.

So, this subtotal would put the CBD residential population at about 4,775 once the noted projects are habitable. In the 2010 census, the CBD could easily tally 10,000 residents.

Not included:
-Phase 2 of Camden at Farmers Market

[aceplace]

So, this subtotal would put the CBD residential population at about 4,000 once the projects are habitable.

Certainly enough people to support a supermarket.

[geosophy]

I agree that a supermarket would be great. With us doing two more projects down here and the other developments going on. There will be a residential base to support that and other retail. Also, the thousands that work down here should help boost their numbers!

[gc]

Marketing Stalls for In-Town Portfolio Despite Turnaround Promise
By Connie Gore - Friday, October 29, 2004 09:20pm
http://www.globest.com/news/148_148/dallas/128044-1.html

DALLAS-A vintage package of in-town buildings, some on and off the market for some time, appears to have been pulled again just days before a full-fledged marketing campaign rolled out the door.
One of the local owners, Andrew Kasnetz, did not return telephone calls by publication time to discuss the pending offering for a pair of West End properties, a 71,765-sf, five-story office building and 6,900-sf structure with a 23-stall parking lot; 1516 Elm St., a 25,000-sf, five-story structure built in 1900; and 2909 Thomas St., a pair of two-story buildings with 5,551 sf divvied into three apartments and retail space. It's been no secret around town that the buildings, one or all, were available at the right price and being quietly offered to scores of condo converters scouring downtown and Uptown for redevelopment propositions.

The decision comes at a time when the in-town multifamily market has reached 94.4% occupancy, the second highest in the Dallas metro, and rent is 1% higher than a year ago, one of a handful of sectors to show some gain, Greg Willett, editorial director of M/PF Research Inc. in Carrollton, tells GlobeSt.com. The average in-town rent is $1,161 per month or $1.26 per sf, cornering the top spot on the metro price index. "It's a market where new product is dominant and the reason for the high rents," Willett says, noting 8,700 of the 11,500 units in downtown and Uptown were built in the past decade. Another 1,456 rental units are rising, with deliveries coming within 18 months. Some will be good candidates for a swing to condos after they're completed, he says. "We're pushing things to a new price point," Willett says. But, Dallas still trails Chicago and Los Angles by $39 per month and lags San Francisco by $400 per month. "I think it's realistic for the very top buildings in Dallas to get around $2 per sf," Willett says.

While the fate of the de-listed portfolio hangs in limbo, another downtown owner, International Capital, two days ago sold the last condo at 509 Elm Place Residences. Christiana Hepfer, International Capital's president, says there have been seven sales in four months. But, she confides, the unit prices were shaved slightly so the books could be closed on the mixed-use West End project, which until recently had 23 sales in six years.

"I feel the condo market is very spotty down there," Hepfer stresses. "We got it done, but we took prices down. I think it's a good idea to go residential, but I would not go condo again." Now rental, she says, is a different story: "I personally would build apartments, rental. They go very well." Randall Turner, president of Harvard Cos. Inc. and an in-town broker with an inside track, says the portfolio buildings, one of which he previously marketed, are "great properties...it's a good time to put them on the market."

Turner says condos are "just now starting to catch on in downtown" although admittedly high-rollers like Hillwood and Crescent aren't having one bit of trouble in Victory or Uptown. He believes says the CBD's vintage stock needs extra perks to attract renters and condo owners. To aid development, downtown caregivers are kicking around a series of ideas to help "bring life" to the two- to five-story buildings in the Main, Elm and Commerce corridor. One idea being probed, he says, is a master valet parking system for renters and condo owners for front-door drop-off and pick-up service.

[freewaytincan]

"I feel the condo market is very spotty down there," Hepfer stresses. "We got it done, but we took prices down. I think it's a good idea to go residential, but I would not go condo again." Now rental, she says, is a different story: "I personally would build apartments, rental. They go very well." Randall Turner, president of Harvard Cos. Inc. and an in-town broker with an inside track, says the portfolio buildings, one of which he previously marketed, are "great properties...it's a good time to put them on the market."

Is there any reason that condos seem to be such a problem in Dallas? Does it have anything to do with how mobile people like to be these days, or what?

[clipper]

That story is just plain bogus. The downtown market is anything but "stalled." Just because some guy decides at the last minute he may not sell some junky old buildings, why does that become a negative. Please. If that's the best they can come up with just spare us all. The reason condos are fewer in number is the same reason there are more apartments in general than condos in Dallas - more people want to be flexible and rent units than buy.

[tamtagon]

Ya, the market stalled for that one project, potentially making other peoples plans all the more likely. Seems like downtown will continue to reflect very positive interest, and if the Forest City folks come through with the Merc, I'd expect residential demand the CBD to then lead the entire North Texas market through 2010.

[dfwcre8tive]

I found this slide on the brochure for UCR's Third Rail Lofts retail leasing flyer and noticed a few additional residential buildings not mentioned before.

TXU - 190 units
Forest City - St Paul & Wood development

Has anyone heard of these before?

[FoUTASportscaster]

TXU and Republic III I haven't. TXU's fortress Tower would benefit by having residential, but the FDIC just moved in and that's unlikely. Forest City is the Atmos Complex.

[slfunk]

TXU and Republic III I haven't. TXU's fortress Tower would benefit by having residential, but the FDIC just moved in and that's unlikely. Forest City is the Atmos Complex.

I don't see the TXU building having residential in it. It doesn't feel right. Now as for Republic III, that's not going to happen. Haworth is in the bottom two floors, Dallas has a department on the 7 and 8th floors, and floors 3-6 provide parking for the offices and Gables apartments.

[dfwcre8tive]

I think they highlighted Republic III and meant Republic I. Some of the highlighted residential buildings are off a bit on the map. I don't think they could get 200+ units in Republic III.

The other Forest City land I was talking about is south of the current Atmos complex. What is there now?

[FoUTASportscaster]

A parking lot that partially had a couple of low-rise structures that Atmos owned. It is now a complete lot after those structures were razed.