DALLAS-A $250-million-plus mixed-use project will break ground by first quarter 2009, with all components planned to rise simultaneously on a 32-acre, ground-leased parcel at Dallas/Fort Worth International Airport. The long-awaited Southgate Plaza is the next development move to establish a world-class airport city.

With a signed letter of intent in hand, the airport board and Southfield, MI-based Redico Development Co. are close to finalizing the ground-lease contract for the site after nearly one year of talks, according to John C. Terrell, the airport’s vice president of commercial development. This morning, Terrell is unveiling the development, which could cost as much as $350 million, at the Aiport Cities Conference and Exhibition 2008. The development site is at the intersection of Rental Car Drive and International Parkway, making the 850,000-sf Southgate Plaza accessible to general consumers as well as airport users without forcing them through the toll gates.

“This is the only property we’re discussing with developers of mixed use at this point,” Terrell tells GlobeSt.com. “And, this is a major step in our airport city process.”

Redico is partnering with Lutz Real Estate Investment of Farmington Hills, MI to develop Southgate Plaza. The development team also is talking to former Dallas Cowboys’ Emmitt Smith, who is attending the conference, about joining the play, but dealmakers say his role has yet to be defined and there’s no signed contract in hand as yet.

Southgate Plaza will have 60,000 sf of retail and restaurant space, a 120,000-sf value-office building and room for a 200,000-sf class A office, 400-key five-star hotel and a select-service hotel with 120 to 130 rooms. Talks also are underway with hotel development companies. “We have a number of interested flags,” Terrell says.

In 60 to 90 days, Terrell says office and retail leasing assignments will be signed deals. The airport board and Redico are teaming on the interviews. Terrell adds that preleasing can’t begin until the ground-lease contract is signed, sealed and filed away. “We have a lot of interest,” he says, “but we have to execute the airport lease first.”

Southgate Plaza will be designed with a skywalk to connect the rental car lot with the full-service hotel. All restaurants will be outfitted with flight display screens as will the hotels. And, Terrell says, there will be shuttle service from Southgate to the terminals. Southgate is envisioned as a pedestrian-friendly design blending the plaza with a park and promenade. “We will be working with them to design it,” Terrell says. “We are cooperating hand-in-hand on this development.”

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?


© 2023 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 Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


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 © 2023 ALM Global, LLC. All Rights Reserved.