[IMGCAP(1)]DALLAS-The premier Tower Club will undergo a $3-million renovation as part of its 28,512-sf, class A renewal for the 48th floor of Thanksgiving Tower. The overhaul, set to begin in March, is the first full-body makeover for the original tenant in the 25-year-old CBD high rise.

“It’s a total transformation that re-establishes the club for the next 30 years,” says Dave Woodyard, EVP of business and sports clubs for Dallas-based ClubCorp Inc. The 150-seat ballroom will be expanded to accommodate 250; the dining room redo will create eight private rooms, an increase of two, for parties from casual to formal dress; and offices will be relocated to expand the dining room and bar/grill areas. He says the work will take “four to five months” to complete, with the 1,700-member Tower Club staying open throughout the phased-in makeover, which will include new fixtures and furniture for ClubCorp’s flagship property in the 1.4-million-sf high rise at 1601 Elm St.

“I think Dallas is really going to love it,” Woodyard tells GlobeSt.com. The renovation cost is being shared by high-rise owner, Los Angeles-based Younan Properties Inc. Woodyard says it’s also tied to a ClubCorp plan that allocated $28 million for its 2007-08 cap ex program nationwide. In Chicago, the Mid-America Club at 200 E. Randolph Dr. is getting a $3.5-million overhaul and the Metropolitan Club at 233 S. Wacker Dr. is in line for $6 million of upgrades. The Houston City Club at One City Club Dr. is being paced through a $3-million renovation and eight other clubs each will get $1 million of upgrades.

ClubCorp did have brokers sizing up Downtown relocation sites, but “we decided in the end this was the best alternative,” Woodyard says, adding both existing and new high rises were under review. “The synergies in the new buildings were not as positive as staying where we are and renovating.”

[IMGCAP(2)]Sarah Payne, senior associate for Stream Realty Partners LP in Dallas, says the Tower Club’s 10-year renewal took 18 months to lock down due to delays from the sale of the high rise earlier this year to Younan and ClubCorp’s pass just months before to Denver-based KSL Capital Partners LLC. She and Stream president and partner Jon Altschuler were negotiating directly with ClubCorp, which typically uses brokers for site searches and then solos for its lease talks.

[IMGCAP(3)]In inking the deal, Payne says Thanksgiving Tower’s leasing team also picked up a perk: an opportunity to offer a one-year membership as a concession for a large lease signing. The concession options include a top of the building sign. The 56%-leased Thanksgiving Tower’s largest contiguous block is 560,000 sf in the lower bank. The 50-story building’s upper bank is more than 95% leased, according to Payne. The class A space is being marketed for $17.50 per sf to $19.50 per sf plus electric.

As the ClubCorp deal moved across the finish line, Payne and Altschuler also landed a 3,000-sf law firm, Hubbard & Biederman, which is relocating from Comerica Bank Tower at 1717 Main St. The inbound tenant, signing a short-term lease for a 19th floor office, will light the space Jan. 1.

“We’re chasing more than one million sf of deals,” Payne says, adding the largest deal in the pipeline is a 200,000-sf prospect. “We think 2008 is going to be a really strong year for the building.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.