Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

User avatar
Tucy
Posts: 1563
Joined: 19 Oct 2016 12:50

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby Tucy » 31 Aug 2022 14:32

kingkong34 wrote:Drove by the location of this project on my way to work and noticed they took down the proposed rezoning sign that was there a week ago. Not sure what this means.


I think the rezoning was done about 1 1/2 years ago.

Regarding the earlier discussion about Truluck's, I thought there was talk about the new tower being built around Truluck's so they could move in to the ground floor of the new tower before their building had to be demolished, or at least not have close on day one of construction. (They are definitely moving in to the new tower...

FWIW, I don't think building permits have ben issued yet.

User avatar
rono3849
Posts: 659
Joined: 16 May 2019 23:46
Location: Dallas

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby rono3849 » 01 Sep 2022 08:33

Tucy wrote:
kingkong34 wrote:Drove by the location of this project on my way to work and noticed they took down the proposed rezoning sign that was there a week ago. Not sure what this means.


I think the rezoning was done about 1 1/2 years ago.

Regarding the earlier discussion about Truluck's, I thought there was talk about the new tower being built around Truluck's so they could move in to the ground floor of the new tower before their building had to be demolished, or at least not have close on day one of construction. (They are definitely moving in to the new tower...

FWIW, I don't think building permits have ben issued yet.


This development's delay is nearly as confounding as the Central Market McKinney @ Lemmon tower & store. It was announced and approved with such fanfare, yet it seems to be frozen in amber. Was this another development impacted by Covid? I thought they would have broken ground on this one by now.

User avatar
RodB
Posts: 55
Joined: 22 Aug 2020 07:35

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby RodB » 01 Sep 2022 14:18

I called TCC (214) 863-4101 today about the status of this project and they referred me to another company. Hmmm?

User avatar
Tucy
Posts: 1563
Joined: 19 Oct 2016 12:50

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby Tucy » 03 Sep 2022 10:20

RodB wrote:I called TCC (214) 863-4101 today about the status of this project and they referred me to another company. Hmmm?


What company did they refer you to?

User avatar
RodB
Posts: 55
Joined: 22 Aug 2020 07:35

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby RodB » 06 Sep 2022 09:29

I don't remember but it was a leasing company. They had no idea what I was talking about.

User avatar
CTroyMathis
Site Admin
Posts: 838
Joined: 13 Oct 2016 19:51

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby CTroyMathis » 06 Sep 2022 14:05

Maybe try this dude:

2100 McKinney Avenue, Suite 800
Dallas, Texas 75201
(214) 863-3649
Robert Brandt

e: rbrandt at trammellcrow.com

User avatar
RodB
Posts: 55
Joined: 22 Aug 2020 07:35

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby RodB » 28 Sep 2022 21:26

The financial incentives by the city of Dallas would support CBRE’s construction of a $200 million headquarters tower in Dallas’ Uptown neighborhood. To receive the financial incentives, the real estate firm “shall construct or cause to be constructed a minimum 600,000-square-foot office tower in the Uptown neighborhood of Dallas by Dec. 31, 2024,” the city documents say. “CBRE will be the anchor office tenant of the to-be-constructed building and will lease a minimum of 200,000 square feet in the building on or before Dec. 31, 2025, to serve as the global headquarters of CBRE.” Who knows, they still have 27 months to build.

User avatar
rono3849
Posts: 659
Joined: 16 May 2019 23:46
Location: Dallas

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby rono3849 » 08 Nov 2022 18:54

No apparent movement on this project. Have to believe the current economic climate has put this one on hold for the immediate future.

User avatar
Tucy
Posts: 1563
Joined: 19 Oct 2016 12:50

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby Tucy » 14 Nov 2022 15:20

rono3849 wrote:No apparent movement on this project. Have to believe the current economic climate has put this one on hold for the immediate future.


I think you are probably right. I suspect CBRE (which is the owner and was to be the primary tenant of the proposed building) may have reassessed its central Dallas office needs, given the economic uncertainty and, perhaps even more important, remote working.

User avatar
jdotpdot
Posts: 2
Joined: 02 Jun 2022 11:31

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby jdotpdot » 14 Nov 2022 16:14

CBRE is planning on $400M in cost cuts including layoffs, so can imagine that this project was on the top of the list

User avatar
R1070
Posts: 1967
Joined: 26 Oct 2016 21:00

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby R1070 » 14 Nov 2022 16:39

well, maybe something will reopen in the Gold's Gym spot and bring some life back to that corner.

User avatar
I45Tex
Posts: 896
Joined: 26 Jan 2017 05:52

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby I45Tex » 03 Dec 2022 18:42

Still a good location for a residential tower with gym tenant and ground floor patio restaurants, if they decide to pivot away from trophy office

User avatar
dallaz
Posts: 768
Joined: 26 Oct 2016 14:50

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby dallaz » 05 Dec 2022 05:32

New Headquarters of World's Largest Brokerage Stalls Amid Financing, Office Demand Concerns

https://www.costar.com/article/73553159 ... d-concerns

Truluck's, an upscale seafood restaurant known for its oysters and crabs, is staying busy at its two-story McKinney Avenue location in Uptown Dallas on one of the city's most prominent streets. And that may signal trouble for local commercial real estate.

Bustling activity at the standalone restaurant is a surprise to some property executives because the building was supposed to be demolished by now to make way for a 27-story tower that would serve as the new corporate home of CBRE Group, the world's largest commercial real estate brokerage by revenue. Multiple real estate sources have told CoStar News the proposed project at 2401 McKinney Ave. appears stalled amid rising interest rates and inflation.

The lack of progress is a rare hiccup for a metropolitan area that has been the national leader in luring companies that promise to invest millions of dollars and create thousands of jobs. Goldman Sachs, for example, is expected to employ at least 5,000 workers at its new $500 million office campus in Uptown Dallas that is scheduled to break ground early next year.

"Right now, to get something completed from start to finish, you need a proven development team with a sophisticated lender with more equity than usual and it has to be a strong deal," said Jack Matthews, a developer experienced in working with the city of Dallas on projects and familiar with area development but not affiliated with the CBRE project. "In the past, other deals were getting done, but I think it's going to be two to five years before we get back to those deals. There's a lot of uncertainty in the market right now."

Construction was supposed to being on CBRE's proposed 750,000-square-foot office tower this past February, according to a state permit. Not only has construction not begun, but Truluck's is still taking reservations well into next year. At this rate, the project might not meet the construction timeline spelled out in an incentive agreement between CBRE and the city of Dallas, and that could imperil the brokerage's access to some public funds, real estate professionals say.

User avatar
R1070
Posts: 1967
Joined: 26 Oct 2016 21:00

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby R1070 » 05 Dec 2022 12:15

This one and the Central Market site are so frustrating!

User avatar
rono3849
Posts: 659
Joined: 16 May 2019 23:46
Location: Dallas

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby rono3849 » 05 Dec 2022 14:17

R1070 wrote:This one and the Central Market site are so frustrating!


I think this is exactly what has happened to both of these developments. They waited too long to start the process and secure funding, so the window has closed on either of their starting anytime soon. You can make your reservations at Truluck's now!

User avatar
Dallas_Uptown
Posts: 99
Joined: 28 Nov 2016 19:26

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby Dallas_Uptown » 09 Dec 2022 14:28

Damn. This is in my back yard and I was looking forward to it.

User avatar
I45Tex
Posts: 896
Joined: 26 Jan 2017 05:52

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby I45Tex » 09 Dec 2022 14:52

AA5A49C4-8835-4743-8D4F-B2308098095C.jpeg

It will fill in. But the office floorplates were, of necessity, so broad as to IMHO look ungainly there. Maybe slenderer buildings will fill out the site, and the corridor of McKinney Avenue activities, better.

Could be an opportunity still in disguise
You do not have the required permissions to view the files attached to this post.

User avatar
rickbansal
Posts: 66
Joined: 22 Jan 2019 07:06

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby rickbansal » 10 Dec 2022 11:40

rono3849 wrote:
R1070 wrote:This one and the Central Market site are so frustrating!


I think this is exactly what has happened to both of these developments. They waited too long to start the process and secure funding, so the window has closed on either of their starting anytime soon. You can make your reservations at Truluck's now!


time kills all deals...

User avatar
R1070
Posts: 1967
Joined: 26 Oct 2016 21:00

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby R1070 » 10 Dec 2022 20:43

There's an article on this development, but I can't read it:
https://www.dallasnews.com/business/rea ... e-on-hold/

User avatar
dallaz
Posts: 768
Joined: 26 Oct 2016 14:50

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby dallaz » 10 Dec 2022 20:54

R1070 wrote:There's an article on this development, but I can't read it:
https://www.dallasnews.com/business/rea ... e-on-hold/


Developers appear to have hit the pause button on one of Uptown Dallas’ largest high-rise projects.

More than two years ago, Trammell Crow Co. announced plans for the 27-story McKinney Avenue office and retail tower.

The almost 700,000-square-foot building would replace the Truluck’s restaurant at the corner of Maple Avenue. The $200 million high-rise was planned as a headquarters for Dallas-based commercial property firm CBRE Group.

But after obtaining zoning for the project and incentives toward the construction, work on the tower has not proceeded.

Previous filings with the city and state called for a groundbreaking earlier this year.

Crow Co. officials declined to comment on the status of the development.

Real estate information firm CoStar recently questioned whether the tower project is still alive.

The tower would have to be completed by the end of 2024 to receive the city economic incentives.

CBRE Group, which owns Trammell Crow Co., moved its headquarters from California to Dallas in 2020 and is located in another McKinney Avenue office building. The international commercial property firm recently announced that it’s taking $400 million in cost reductions because of the deteriorating economic environment.

Since the Uptown project was announced, interest rate hikes by the Federal Reserve have dramatically increased the cost of new development.



It not too much different than the costar article

User avatar
R1070
Posts: 1967
Joined: 26 Oct 2016 21:00

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby R1070 » 10 Dec 2022 21:13

Thank you!

User avatar
dallaz
Posts: 768
Joined: 26 Oct 2016 14:50

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby dallaz » 06 Mar 2023 11:06

CBRE moving Dallas headquarters to overlook Klyde Warren Park

https://www.dallasnews.com/business/rea ... rren-park/

The commercial property firm is moving into space overlooking Klyde Warren Park that previously housed a coworking center.

CBRE will occupy 67,000 square feet of the building at Pearl Street and Woodall Rodgers Freeway.

CBRE had originally planned to consolidate its headquarters and local operations in a 27-story office and retail tower to be built at the corner of McKinney and Maple avenues. But the building start got put on hold coming out of the COVID-19 pandemic when office leasing declined.

“We still believe it’s one of the best office sites in America,” Sulentic said. “And that site is going to get built. It’s a 700,000-square-foot office building and it doesn’t make sense right now. But we still need to have a global headquarters.”



I’d much rather for them to build a residential tower on this site instead. BTW CBRE is moving to Park District.

User avatar
I45Tex
Posts: 896
Joined: 26 Jan 2017 05:52

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby I45Tex » 06 Mar 2023 12:36

The city economic development incentives will have to be reapplied for, since 2401 won't be able to open by the end of next year.

User avatar
rono3849
Posts: 659
Joined: 16 May 2019 23:46
Location: Dallas

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby rono3849 » 06 Mar 2023 15:46

This doesn't surprise me at all. They couldn't get their act together to move forward before the market turned. I think that development of new office towers will lag in getting out of the ground unless they have commitments to fill those towers. Spec office towers don't hold much promise in major US markets with the current remote offices for employees now. Residential towers, hotel towers, or multi-use towers will be the future. That's why I think Portman Holdings and Hunt's towers have a better shot at coming out of the ground.
Last edited by rono3849 on 06 Mar 2023 17:19, edited 1 time in total.

User avatar
CTroyMathis
Site Admin
Posts: 838
Joined: 13 Oct 2016 19:51

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby CTroyMathis » 06 Mar 2023 16:07

That site would be nice with not one, but, two residential buildings. Trulucks can come along again later, too. Forget all this office space stuff in the Center City areas. Throw in 40K-100K of office space here and there in specialty m/u situations and call it good from here on out (w/exception to some random big need/opportunity which isn't often).

User avatar
tamtagon
Site Admin
Posts: 2323
Joined: 16 Oct 2016 12:04

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby tamtagon » 06 Mar 2023 21:37

Need to double the population of uptown

User avatar
I45Tex
Posts: 896
Joined: 26 Jan 2017 05:52

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby I45Tex » 06 Mar 2023 22:19

I notice that from the Arts District all the way to Knox, the new infill project square footage is roughly matched by the new square footage of parking garages. That's a big sandbag for residential to lug if we really want middle-class residential. The cost then skews to "luxury" and fewer projects even find financing unless the luxury market is there for them to target.

User avatar
tamtagon
Site Admin
Posts: 2323
Joined: 16 Oct 2016 12:04

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby tamtagon » 07 Mar 2023 06:09

^is there any indication that these garages are being built to allow conversion to some other use in the future? Especially in the more expensive buildings, some of the garage space might be need conversion to storage or even additional dwellings.

User avatar
I45Tex
Posts: 896
Joined: 26 Jan 2017 05:52

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby I45Tex » 07 Mar 2023 23:27

Not that I know of. The forum used to have a member who was good at advocating the usefulness of that idea. Thanks to him, your question made me realize that, hey, Dallas' towers with identical floor plates stacked above a podium would be a perfect fit for the Barton Malow engineering & construction (Michigan-based firm, doesn't have an office in Texas yet) method called LiftBuilding.

https://www.bartonmalow.com/news-events ... e-project/


...in which they pour the plates on the ground and hoist them to the roof using the concrete cores as the crane. You wind up doing the lowest floors (in Dallas' case mostly used for the unfinished-out garage parking) last. And incidentally they could be designed to be ready for future adaptive reuse options.

https://www.bartonmalow.com/about-us/

User avatar
dallaz
Posts: 768
Joined: 26 Oct 2016 14:50

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby dallaz » 18 Apr 2023 12:35

It doesn’t seem like this project is dead. I just watched a portion of the city planning commission from March 23rd. They got approval for signage similar to other buildings in the Uptown area. They’re trying to get the building leased to other tenants.


Screenshot from presentation

F3FB4BE5-C044-4A9F-BF95-7F507414BECA.png
You do not have the required permissions to view the files attached to this post.

User avatar
I45Tex
Posts: 896
Joined: 26 Jan 2017 05:52

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby I45Tex » 16 Oct 2023 14:26

The Real Deal reported in May that it is on hold

https://therealdeal.com/texas/2023/05/2 ... -projects/

User avatar
rono3849
Posts: 659
Joined: 16 May 2019 23:46
Location: Dallas

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby rono3849 » 16 Oct 2023 16:17

I45Tex wrote:The Real Deal reported in May that it is on hold

https://therealdeal.com/texas/2023/05/2 ... -projects/


The rising interest rates & office vacancy rates have put this one on the shelf along with a number of developments. Not surprising at all. Turlock's will be open for the foreseeable future at their current location, that's for sure.

User avatar
R1070
Posts: 1967
Joined: 26 Oct 2016 21:00

Re: Uptown Dallas: 2401 McKinney (406 FT / 29 ST)

Postby R1070 » 16 Oct 2023 22:09

I was really hoping this would go up. So sick of that suburban Truluck’s on a prime corner.