Condo options downtown
New projects aim to lure homeowners
May 6, 2005
By STEVE BROWN / The Dallas Morning News
When Camille and Kevin Strawbridge moved from Memphis to Dallas recently, they wanted to live in the heart of the city.
They can't get much closer than their new address – a downtown condominium.
"It's convenient, and we are excited about the renovations downtown," said Ms. Strawbridge, who works at a central Dallas restaurant while her husband commutes to the suburbs. "We can walk to entertainment and restaurants, and there's going to be a grocery store up the street."
The Strawbridges are among about 60 buyers at the SoCo Urban Loft Condominiums on Jackson Street near Griffin Street.
With 203 units, it's the biggest condo project in the central business district.
"The timing we felt was right for homeownership downtown," said developer Cliff Booth of Westmount Realty. "Dallas has been behind other major markets in this trend."
During the last five years, developers have built more than 2,000 apartments in downtown Dallas. But the options for buyers have been limited.
That's about to change.
A good supply of old commercial buildings that can be converted to housing is driving the market, analysts say.
"The condo market in downtown is emerging and doing better than I thought," said analyst Mike Puls of Foley & Puls. "But downtown is a more price-oriented market than Uptown.
"Buyers will go downtown if they can get something they like and the price is not too high," he said.
At the 11-story SoCo lofts, units start at about $100,000 and average $165 per square foot. Compare that with Uptown, where new high-rise condos start at twice that.
"We are providing a more affordable homeownership option," Mr. Booth said. "We're cheaper than even some of the new suburban condos."
The SoCo lofts have a rooftop pool and deck, a fitness center and secure parking garage.
Most of the buyers are new to downtown, Mr. Booth said. "They are mostly from Uptown. We are seeing some couples, but it's mostly singles."
Cheaper than Uptown
Developers are about to start selling units in the next big downtown condo project, the Metropolitan. The 26-story former office tower at 1200 Main St. is being converted by New York real estate company Rockwood Realty.
The 1970s high-rise will have 273 condominiums, according to Christine Lutz of Chicago-based Garrison Partners Consulting, which will market the building.
"We are nearly complete with our plans and pricing," Ms. Lutz said. "We are anticipating that we will be able to engage the market at the end of June.
"It will be like nothing downtown Dallas has seen," she said.
As part of the redevelopment, Rockwood will build a parking garage attached to the tower at Main and Field streets. Also, the glass exterior of the building will be remodeled with balconies.
Ms. Lutz said the condos will start at less than $150,000.
"I'm consistently stunned with the prices in Uptown," she said. "This is going to be for people who need an alternative."
The first condo projects to hit the market downtown – 2220 Canton, 509 Elm and the Jackson Street Lofts – were small.
The eight units in the Jackson Street project sold for between $300,000 and $500,000, according to Joseph Gullotto of Ebby Halliday Realtors. Buyers included three attorneys and an executive with J.C. Penney.
"We closed our last sale about two months ago," he said.
Another project, at 1505 Elm, has 67 units and is about to sell out. Last Saturday, the building had a closeout sale for the final 18 units.
"It was a phenomenal success, and we sold the majority of them," said Wendi McGowan, who works for Prime Demographics, which handled the sale. The units were priced from less than $200,000 to more than $400,000.
Other developers are still gauging how successful the downtown condo market will be.
San Diego developer 3J Development bought the 33-story 1600 Pacific Tower and the 16-story Praetorian Building with plans to convert the mostly vacant office towers into apartments or condos.
Trade-offs
Real estate agent David Griffin was just hired to market condominiums in the planned arts district complex that will house 7-Eleven Inc.'s headquarters. One Arts Plaza will have about 60 condos and is at the northeast edge of downtown.
"I'm very bullish on the market for these," Mr. Griffin said. "Where else in Dallas will you be in a block with internationally famous architect-designed buildings?"
Mr. Griffin said the main reason condos have been slow to take off downtown is the neighborhood.
"There is a trade-off between a lack of amenities such as parks and retail," he said. "There is a desire for people to live downtown, but there has not been the infrastructure there is in Uptown."
Also, given the quality of new condominiums in Uptown, downtown developers can't afford to cut corners, Mr. Puls said.
"The ones that just paint the pig are going to have real problems," he said. "You have to make the product look brand new, and you have to have the feel of security."
Downtown prospects are strong enough to attract investors such as Christian Hibberd, a Los Angeles businessman who just bought two SoCo lofts.
"I think there is a huge upside in these," he said. "People want to live closer to work, and the cost of gasoline is so bad.
"I believe that Dallas and other cities will follow the trend of people moving back into downtown," he said.
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