$200M in Plans Brew for Prized Urban Sites

"They're the highest quality infill sites that you can get," says Tommy Miller, executive vice president for the locally based development group. The prized package is 3.24 acres at the corner of Avondale and Oak Lawn Avenue in Dallas' prestigious Turtle Creek and 7.5 acres along University Drive in Fort Worth. Both developments, tentatively dubbed Park Place and River Plaza to play off their existing name recognition, will be high-density, urban packages of residential, office and retail that will deliver in late 2008. To meet the planned delivery, work on both projects will ramp up in mid-2007.

"The common thread is they have a high potential for a high-quality retail tenant mix," Miller tells GlobeSt.com. "The retail really provides the excitement that makes all the other uses work even better."

Terry Montesi, Trademark president and CEO, says the "retail viability" for each location sparked the chases, which in the case of the Dallas site, was a hard-fought battle to beat the competition for a ground lease to nearly a full city block that's been under the control of the Caruth Foundation since October 2004. After four months of negotiations, the lease was inked in the past two weeks, with Michael Geisler, partner in Dallas-based Venture Commercial Real Estate LLC, steering the talks. The long-term lease includes a "unique conversion feature that will allow for fee simple condominium ownership," according to the executives, who also are in the midst of talks with the Park Cities Presbyterian Church for an adjacent 1.2 acres, which as all local market watchers know hinges on parking needs for the large congregation.

Formerly the home of Park Place Mercedes, the 3.24 acres are being gamed out for at least $100 million of retail and restaurant development, high-rise residences, health club and spa and maybe loft offices. Trademark has yet to lock in a residential developer to partner on the project or the architect.

Montesi says Park Place will include underground parking and is sure to rise to the maximum 12 stories. "We'd be surprised if we didn't use it," he says of the height restriction.

The Fort Worth tracts, bought directly from two private local investors, include the River Plaza office project and Silver Fox Restaurant. Trademark is joint venturing with River Plaza's owner, RP Partners Ltd. The development plan, guaranteed to push well above $50 million, calls for 90,000 sf of new street-level retail, 120,000 sf of renovated class A office space, a lifestyle hotel and parking structures. The JV also is looking at incorporating a residential component into the plan. Montesi says talks have begun with three hotel operators. A decision could be made within two months.

Montesi and Miller say they've been negotiating the deal nearly 18 months. The site is across from the entrance to the 170,000-sf University Park Village and parked on the banks of the Trinity River and Trinity Trail System. "I found the deal, had an idea and put it together," Miller says.

The Fort Worth site, like Park Place in Dallas, meets the irreplaceable benchmark that makes it easy to exit the investment when it's time. "High barriers to entry are important to us," Miller says.