Dallas Fort Worth Urban Forum

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.

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.

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

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.

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.

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

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!

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.

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.”

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

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