Two Deals Land in Historic CBD Office

Finish-out has begun on a bi-level office, linked by a spiral staircase, in the 501 Elm St. landmark for advertising agency Calise & Sedei. Meanwhile, Interverz LLC, a software start-up company, has settled into 4,128 sf of as-is space in the 40,000-sf block emptied last year when Corgan Associates Inc. cut the ribbon on at a new 58,000-sf headquarters at 401 N. Houston in the West End.

Calise & Sedei is planning a mid-July move-in to the now 63%-leased building, which has 127,621 sf of office space in the connected 501 Elm and 211 Record St. block, Morton's of Chicago Steakhouse and Holocaust Museum. A third connected structure, 509 Elm St., has 25 residential condos, all sold through the years to in-town dwellers and investors alike.

Scott Ehley, vice president of International Capital Inc., tells GlobeSt.com that he has a 4,000-sf deal pending and a 6,000-sf prospect in the pipeline for early 1900s office complex on state and national historic property registries. He says the key has been to market the asset to creative groups, which represent nearly 30% of the tenant base. "The interest now is almost exclusive creative," Ehley says. The space is being marketed for $16 per sf plus electric. The lion's share of the class B office space predominately, though, is still leased to attorneys and other professional fields.

Calise & Sedei's new office will take up half of the fifth and sixth floors, getting an inner office spiral staircase to connect them. Ehley says the short list was down to two CBD buildings, but the staircase banked the deal for International Capital. The advertising firm inked a seven-year lease after nearly six months of negotiations. Mark Nelson with Nelson Realty of Dallas bargained for the advertising agency, which will move from 13737 Noel Rd. in North Dallas.