$92M Mixed-Use Project Unveiled for Dallas CBD

After three months of talks, deeds have turned to the 562,197-sf, 31-story 1507 Pacific Ave. and 287,352-sf, 21-story 1511 Bryan St., better known around town as the Fidelity Union Tower and Fidelity Union Life Building, respectively, and an adjoining 750-space parking garage. Though assessed at roughly $2 million in their present state, the true properties' value, leveraged by location, would probably fall between $19 million and $23 million, sources believe.

Randall Turner, founder of Harvard Realty Corp. and minority partner in the redevelopment plan, tells GlobeSt.com that it's not what exists, but rather the vision of what it will be that has jumpstarted a massive undertaking with Ted and Larry Hamilton at the lead. The plan includes chasing a historic designation, seeking $9 million in City Center TIF funding and investing double digit millions into asbestos-riddled, "50-something" buildings. The development team's goal for Pacific Place is a 1.1-million-sf build-out, with 500 apartments, 23,192 sf of retail and restaurant space, 62 private garage units and 850 parking spaces. The game plan will require taking down some floors in the buildings to add to the parking area.

Turner cornered the deal through a longstanding relationship with TXU along with an endorsement from now-retired board chairman Earl Nye. "He has a vision to see these go from boarded-up buildings to a prosperous retail and residential complex," says Turner, who will only say that the 1.2-acre tract and three buildings changed hands for cash and less than their assessments. And, he emphatically adds, "the sale price will remain undisclosed forever."

With the deeds in hand, the next step is city council approval for funding that will be used in part for asbestos removal, says Turner, who believes the OK is merely a matter of formality. "We all want to see this project built," he says. "It reminds me of Uptown about 10 years ago. Once we reached a critical mass, everything got sold and leased."

Turner says RFPs for additional architectural work will be floated immediately although a preliminary adaptive reuse plan has been crafted that would retain the facades and rework the interiors into rental and possibly "for sale" units. He's estimating it will take a year to 18 months before space starts to turn, with build-out taking as long as three years for the intersection of Bryan Street and Pacific Avenue. "It's in the dead center of the city," he says of a site with unique development opportunities due to positioning next to the light-rail station, at the entrance of the tunnel system, near the Skybridge and outfitted with a half-acre, underground commercial delivery court.

TXU, which has its headquarters next door, mothballed the office buildings eight years ago. The tower, built in 1959, is assessed at $556,210, and the smaller structure, erected in 1949, carries a $460,000 levy by the Dallas Central Appraisal District.