DALLAS-With dirt work under way, the Billingsley Co. has secured $100 million of construction financing for One Arts Plaza, a class AA mixed-use project that won all nods when 7-Eleven Inc. agreed to a 240,000-sf headquarters lease. The just-signed financing represents 80% of total costs for the first of four buildings planned for the developer's Arts District land.
Todd A. Armstrong, senior managing director for Holliday Fenoglio Fowler LP's Dallas office, tells GlobeSt.com that the financing closed in 60 days once 7-Eleven said "yes" to the deal. The three-year floater at a sub-200 points over Libor was funded by Guaranty and Wachovia banks, he says.
"We had a tremendous amount of interest from the lending community given the sponsorship and the lead tenant," says Armstrong, who teamed with HFF managing director Trey Morsbach to arrange financing. Armstrong says the package is a "very traditional construction loan" with "very attractive pricing." Over the years, HFF has packaged $475 million of loans for the Dallas-based developer, Lucy Crow Billingsley.
One Arts Plaza will be a 24-story structure with 455,000 sf of office space, 36,972 of street-level retail and 71 condos. The balance of the design by Lionel Morrison adds a 30,000-sf entry plaza and 1,118-space, seven-story parking garage. The development site is at the intersection of Routh and Flora streets in the Dallas Arts District on a prized tract owned for decades by the Trammell Crow family.
Billingsley, like others in the CBD, launched an aggressive campaign lasting about a year to lure 7-Eleven from its long-time headquarters in Cityplace Center at 2711 N. Haskell Ave. When the dust settled on the talks, 7-Eleven agreed to a 15-year lease for 240,000 sf of office space on floors seven through 13 and retail space for a convenience store on the ground floor.
One Arts Plaza's one-, two- and three-bedroom condos will take up the upper seven floors. Units will range from 1,200 sf to 3,400 sf. The condo component will have a private entrance, rooftop garden and pool and round-the-clock security.
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