The 1 million-square-foot, two-tower office campus at Dallas Midtown could lure a large office tenant to North Dallas. Omniplan
Dallas Midtown could begin taking shape in the next few years, with New York City-based Seritage Growth Properties (NYSE: SRG) and Dallas-based KDC readying a 23-acre tract in North Texas for up to 1 million square feet of new office space.
The office campus will span two Class A office towers and will be part of a much-larger corporate magnet, which will include a hotel, apartment communities, as well as entertainment and retail space. Upon completion, the mixed-use project will replace the vacant Sears department store near the high-profile intersection of Preston Road and LBJ Freeway in North Dallas. Show Full Story
"Seritage's plans are going to be a transformational project that converts the Sears site into a highly productive office and first-class retail, dining and entertainment destination," said James Bry, executive vice president of development and construction for the publicly-traded, Sears-affiliated real estate investment trust.
The proposed North Dallas project is part of the larger 430-acre Dallas Midtown redevelopment zone, which is bound by the Dallas North Tollway, LBJ Expressway, Spring Valley Road and Montfort Road. Earlier this year, Seritage, with the help of KDC, began marketing the Sears site to would-be tenants.
The high-rise campus will need a corporate tenant before construction can begin. KDC executives expect the two office towers to take about 24 months to construct after the firm begins work on the development site.
The Dallas-based development group is excited to take the once-vibrant site and breathe new life into it, said Bill Guthrey, a senior vice president and partner at the firm.
"This is such a relevant intersection in North Dallas," Guthrey told the Dallas Business Journal. "It's exciting to see the truly integrated mixed-use footprint that will help bookend Dallas Midtown all the way over to the Galleria."
The KDC-led development team plans to work with neighboring property owners within the Dallas Midtown planned development district to create a dense, urban environment, he said.
Seritage has begun meeting with would-be apartment developers on the communities proposed within the 23-acre project. The REIT is also expected to soon begin meeting with potential hotel developers and operators.
Dallas Midtown was one of the North Texas proposals being offered up by the Dallas Regional Chamber as a potential site for Amazon.com's HQ2 campus. In September, Dallas Midtown stakeholders — including Seritage and KDC — unveiled a proposal for a 100-acre urban campus next to 'Amazon Park,' within the planned project.
Guthrey said he "has to believe" Amazon.com is looking at Dallas-Fort Worth based on their specifications, but the Seattle-based online retail giant isn't the company causing his team to ready the project for construction.
"We are responding to a couple of office inquires, and we are preparing the project to move quickly so we can have one or a few of these components ready to go," he added.