Developer Lays Out Aggressive Course for Dallas/Fort Worth

"I anticipate we'll be in Fort Worth in six months," Peter Meyer, principal in Dallas for Shea Commercial, tells GlobeSt.com. Meanwhile, he's pushing out 400,000 sf in six projects, primarily on the Dallas side of the metroplex, and more on the way. With this year's goal already topped out, Meyer's site search is setting the play for 2005 when he hopes to bring another 500,000 sf on line in the region. Then, Meyer's focus will turn to San Antonio, where he hopes to be buying sites in late 2005 to develop 200,000 sf of office condos in 2006.

"We came to Texas because of land prices and demographics," Meyer says. "We try to focus around medical campuses and Dallas/Fort Worth has some wonderful medical facilities with Baylor and Presbyterian hospitals."

That kind of focus put Shea Texas LLC--led by Meyer, Jim Riggs and Charles Lindgren--into a partnership with Dallas-based PRG Realty and Dr. Thomas E. Diaz, a bariatrics physician to the stars, for the off-market purchase of MacArthur Commons at 3501 MacArthur Blvd. in Irving from Miranda Partners of Chicago. Shea loaned $1 million of mezzanine capital to PRG, which got additional funding from First United Bank of Durant, OK to buy the 1970s-era MacArthur Commons, 120,000 sf in nine office-and-retail buildings positioned between Baylor and HCA hospitals.

The partners intend to spend about $1.5 million on the vintage campus, turning class B space into class A condos and marketing it as the HealthState MacArthur Medical Campus. Shea's team is handling sales and locally based Bradford Co. has been kept on as property manager. PRG principal Drew Peterson estimates the development's value will push $20 million when the work is done. Myles Caldwell of Dallas is the general contractor. AMC Architects of Dallas did the redesign.

Diaz, a TV personality thanks to one-time Irving resident Dr. Phil, bought a 20,000-sf building in the 12-acre complex and renovated it as PRG pushed toward the closing. The complex is 70% occupied by 25 tenants, of which 20% are medical-related. PRG principal Mark Robertson says 50% of the leases roll between now and February 2005. Peterson is holding letters of intent for 42% of the HealthState condo space at a starting rate of $150 per sf for shells. He predicts the "lifestyle medical campus" will be sold out within a year.

As the HealthState project takes shape on the city's south side, Shea has started to develop a six-acre tract on the north end at the junction of Las Colinas Boulevard and Texas 161, adjacent to Baylor and Las Colinas medical centers. The 65,000-sf Las Colinas Office Suites, bearing a $12-million development tag, is rising with 30% of the condo space pre-sold. The prediction is the class A project will be sold out when it delivers at the end of Q1 2005.