2nd downtown tower speculation this year
7-Eleven may move downtown
One of its options is building a tower in the Arts District
11:32 PM CST on Thursday, February 24, 2005
By STEVE BROWN / The Dallas Morning News
7-Eleven Inc. may move downtown when its lease at the Cityplace tower runs out.
The convenience store giant is looking at an Arts District location for a new building and has shopped at least one other vacant building downtown, real estate brokers say.
If 7-Eleven moved downtown, it would be the biggest corporate headquarters to move into the central business district since Blockbuster Inc. in 1996.
7-Eleven sold the 42-story Cityplace building on North Central Expressway last year for $124 million. Its lease is up in just over two years.
"We continue to look at all options for our headquarters, and that includes remaining in this building," said Margaret Chabris, 7-Eleven's public relations director. "We have not made any decision about a move."
Real estate brokers say 7-Eleven's top relocation site is a 10-acre tract on the eastern edge of the Arts District.
Developer Lucy Billingsley owns the property at the intersection of Central Expressway and Woodall Rodgers Freeway that was recently added to the Arts District. The land is across the freeway from the booming Uptown neighborhood.
Preliminary plans call for a mixed-use development on the mostly vacant property.
"All I'll say is, I have been in contact with several different corporations about our downtown property," Ms. Billingsley said. "There is tremendous excitement about the Arts District."
If 7-Eleven moves inside the downtown freeway loop, it would be a coup for the central business district, property brokers say.
"It would be a huge win for downtown and signal that development in the core is back," said Joel Pustmueller of Peloton Real Estate. "If that project goes forward, it would anchor the Arts District on the east side.
"And it would provide great visibility on the skyline for someone like 7-Eleven," he said.
Because of the time required to build a large office project, a decision is probably close at hand, Mr. Pustmueller said.
"It would be outstanding if 7-Eleven relocates to downtown," said John Zogg, senior vice president of Crescent Real Estate Equities Co. "I know they are considering a new building as well as existing buildings."
"They would be endorsing all of the significant changes and vibrancy in downtown today," said Mr. Zogg, whose company is downtown Dallas' largest office landlord.
In recent months, 7-Eleven representatives have looked at existing buildings downtown and locations in the suburbs, brokers say.
Whether the company stays at Cityplace or moves to the central business district, keeping 7-Eleven in town is key, said Dallas City Council member Veletta Forsythe Lill.
"We need to do whatever is necessary to keep them," she said.
7-Eleven built the Cityplace tower in 1988 and has had its headquarters in the skyscraper since then.
About 1,000 7-Eleven employees occupy almost 500,000 square feet in the 1.4 million-square-foot tower.
7-Eleven said when it sold Cityplace that its new landlord, Prentiss Properties, would owe an additional $14.5 million for the building if 7-Eleven decides to stay after its lease expires.
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