By STEVE BROWN
Real Estate Editor
stevebrown@dallasnews.com
Published: 03 November 2011 03:37 PM
RelatedDeveloper Craig Hall hopes to break ground next spring on an office tower, retail building and a half-acre park in Dallas' downtown Arts District.
The complex across the street from the Myerson Symphony Center will be the first phase of a $500 million development Hall plans along Ross Avenue and Flora Street.
But first the developer has to line up business tenants, arrange construction financing and clear some hurdles at city hall before construction can begin.
"I've wanted to do this project for some time and once it's done, people will think it's a great contribution to downtown and the Arts District," Hall said Thursday.
Hall Financial Group has owned the 5-acre development site since 1995. The real estate and investment firm bought the property – complete with an underground parking garage and unfinished ground-level construction – after previous owners' plans for two skyscrapers fell through.
For the last 16 years the property has remained virtually unchanged while the surrounding Arts District grew with new venues and world-class architecture.
"I bought the site believing that the performing arts buildings would be built in the next few years," Hall said. "Of course it took years longer."
Hall believes that the timing is right to resume development of the property. Demand for new first-class office space in the area is increasing, he said.
"If we don't have some new high-quality space in the Arts District or Uptown, some businesses will move to Plano or Richardson or further," Hall said.
The $160 million first phase will be a 17-story, 460,000-square-foot office tower fronting on Ross Avenue. Construction of a restaurant building facing the symphony hall on Flora will also be part of the initial construction.
Dallas' architect HKS designed the development. "They've worked with on this site for the better part of a decade," Hall said.
To attract business tenants to the project, Hall Financial is seeking city approval to put corporate signs on the tower that are currently not allowed by Arts District zoning.
The developer has asked the Dallas City Council for permission to install the sings, which some residents in the Arts District oppose.
"I have been quite surprised at what we thought was a minor thing has turned out this way," Hall said.
This week Hall Financial sent detailed plans for its Arts District project to city council members as part of an effort to gain their approval.
Additional development on the property is planned to include a high-rise residential building, more office space and retail.
"It's important to have street level retail on Flora," Hall said. "We have some great restaurant spaces planned and an entertainment area on the roof overlooking the neighborhood.
"We've got a greenbelt between Ross and Flora that will be open to the public that will join downtown and the Arts District in a pedestrian friendly way," he said. "I think the Arts District is real important to the future of Dallas and I want to do something responsible."
Hall said the first phase of his project will take 18 to 24 months to build once work begins.
The developer must receive a construction permit to start the project next year and have it finished by the end of 2015 to receive previously approved financial incentives from the city.
Hall Financial Group is currently working to sign up tenants.
"No lender is going to make a loan without preleasing," Hall said. "We've had discussions with bank tenants that want to consolidate in a new Arts District building."
BBVA Compass is one of the financial firms looking for a new office location in Dallas, real estate brokers say.
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