Panattoni Breaks New Ground in North Texas

A year of negotiations has landed the northwest corner of Carroll Road and Texas 114 for the development of Cedar Ridge Office Park. Daniel B. Anderson, Panattoni's development manager in Dallas, says the first building wave--five 6,000-sf buildings and a 30,000-sf, two-story structure--will rise as class A spec space, with a 101,500-sf, three-story structure held in reserve for the final construction push. The first delivery is penciled for March 2005.

Anderson tells GlobeSt.com that Panattoni's already holding purchase contracts for one of five buildings and letters of intent for two more. Negotiations also are underway with two banks to buy a pair of pad sites on roughly three acres, fronting the hard corner across from the city's town square. Shell construction is priced at $165 per sf, including air conditioning, with $30 per sf projected for the finish-out. Leased space has been tagged at $16.50 per sf, triple net.

Panattoni's Texas partner, Jon C. Napper, secured the project site from Legacy Capital of Dallas. Steering the talks for Panattoni were Stan McClure of CB Richard Ellis Inc.'s Dallas office and the seller's broker was Dean Flowers of Dollar Flowers, also Dallas.

Anderson says Cedar Ridge Office Park is just the beginning of the San Francisco-headquartered Panattoni's venture into high-end, mixed-use development in the region. No other sites are under contract, but he says the developer's looking hard in select submarkets leading to far north Dallas and the east of the Big D. "They just identified small office parks as something they'd like to get into in niche markets," he says of the developer's new direction in town.

As owner and developer, Panattoni is putting its construction crew on the ground as general contractor. O'Brien & Associates of Dallas designed Cedar Ridge Office Park and Tycher & Associates, also Dallas, is its landscape architect.

Napper and Anderson are pushing a project with a prototype feature: covered parking for suburban office buildings. Each 6,000-sf building has been outfitted with a carport and the largest structure is getting an underground garage. "The upscale nature of this project, which includes covered parking, sets it apart from existing space in the area," Napper says in a press release, "and specifically targets the high-income residents of Southlake who want to office closer to home."