Dallas artist doubles as developer
Condos grow out of converting old garage into studio space
10:35 AM CDT on Friday, June 1, 2007
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com Zad Roumaya's journey into real estate development started as pretty basic – he needed a place for his art studio.
So nine years ago, Mr. Roumaya and his partners purchased a 50-year-old commercial building just south of downtown and remodeled it into workspace.
"Our first goal in '98 was to save the building and office here cheaply – typical artists," he said.
LOUIS DeLUCA/DMN
Zad Roumaya relaxes in one of the condos at his successful Buzz condo project on South Akard Street.
After working in the converted garage a few years, Mr. Roumaya and his partner Will Pinkerton began making bigger plans for the neighborhood. They eyed the vacant lot across the street – about three blocks from City Hall – and thought it was the perfect location for condominiums.
"We finally said, let's do it ourselves," Mr. Roumaya said. "I borrowed against the equity in our old building to buy the dirt our Buzz condos sit on."
The gamble paid off – the just-completed Buzz condo project on South Akard Street is almost 80 percent sold, and it's a hit with residents and neighbors.
Change Chamber Development
Located just a block south of downtown, the Buzz condos’ four-story residential building has an industrial look with metal trim and bright graphics. And those windows are actually overhead doors that open onto each balcony.
Now the two entrepreneurs are working on a second, even larger deal in Oak Cliff.
So how does it feel making the shift from artist to real estate developer? "That still hasn't sunk in yet," said Mr. Roumaya. "I'm still doing a few art commissions a year."
In the 1990s, Mr. Roumaya left behind his education in finance and marketing to do sculpture, architectural fabrication and design work.
But he's going to have less time for art when the Oak Cliff project starts late this year.
His Change Chamber Development is teaming up with the renovators of the popular Belmont Hotel on Fort Worth Avenue to build two residential projects.
"We've already had people asking about purchasing units," said Mr. Pinkerton, who worked in real estate finance and accounting before partnering with Mr. Roumaya. "A lot of the inquiries we are getting are from people who live somewhere in Oak Cliff."
Alternative for buyers
The developers hope their residences – a combination of live-work studios and for-sale flats – will offer the same kind of affordable housing alternative buyers found at the Buzz.
"When we build in these emerging areas, it's less expensive to buy land," Mr. Roumaya said. "We want to pass that on to our customers."
At the Buzz building, 49 condominiums sold for between $125,000 and $240,000.
The project was designed by architects Kevin Parma and T. Howard & Associates and built by KWA Construction.
LOUIS DeLUCA/DMN
At the Buzz building, 49 condominiums sold for between $125,000 and $240,000.
Located just a block south of downtown, the four-story residential building has an industrial look with metal trim and bright graphics.
"We've had a strong response – it has to be the downtown workforce," Mr. Roumaya said. "We have a melting pot of people in the building."
Construction started on the project in January 2006. It was the first condo development attempted in Dallas' historic Cedars neighborhood – a rough-around-the-edges industrial and residential district with postcard views of the skyline.
"We had a lot of senior developers tell us we were crazy to build here – they still tell us that," Mr. Roumaya said. "Some of the people we approached as investors are now coming back."
The Buzz building actually was constructed about $100,000 under budget, he said.
Buyers in the building say they like the developers' hands-on approach to the business.
"Zad started doing mixers with the community during the development phase and everybody got to know each other," said Christian Chernock, a homebuilder who bought one of the units. "That's different than what is happening in other places – it's a neat community to be a part of.
"The building has a lot of character and its own personality, which everyone cares about."
Zipping around
The latest addition to the Buzz project is a garage full of mopeds that residents in the building can use to zip around the neighborhood.
LOUIS DeLUCA/DMN
A look at the kitchen area of one of the Buzz condos.
"You can't imagine how that project has changed the impression of the area," said developer Larry Hamilton, who owns the former Ramada Inn hotel across the street.
Mr. Hamilton hopes to start work this fall on transforming his building into a boutique hotel.
"I have brought visitors from out of town to see our hotel, and they look across the street at Buzz and think it's staggering," he said.
Belmont Hotel developer Monte Anderson was impressed enough with Mr. Roumaya and Mr. Pinkerton's success in the Cedars neighborhood to invite them to join his project in North Oak Cliff.
"I saw how they had done things over there, and I have my hands full," Mr. Anderson said. "They are bringing capital and energy to my project.
"We are going to do it together."
The planned construction along Fort Worth Avenue near Sylvan will include about 50 flats and a dozen "merchant homes" – townhouse-style units with work spaces on the ground floor and residential space above.
The Fort Worth Avenue project won't copy Buzz's industrial look.
"We have to be more sensitive to the Belmont's historic architecture," Mr. Roumaya said. "We want to tie it to the Moderne style.
"We think there is a pent-up demand from the person who wants to own an urban home under $200,000."
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