Mar 17, 2010
City Place For Sale
By: Kevin Buchanan
The Dallas developer that owns City Place — the high-profile redevelopment of the Tandy Center twin towers in downtown Fort Worth — has put the property on the block.
A year ago, PNL Cos. put the vacant, 19-story One City Place tower at Third and Taylor streets up for sale. PNL’s original plan was to make that tower a condo building when the anchor tenant, RadioShack, moved out several years ago.
But now, Jones Lang LaSalle, the real estate broker representing PNL, said it might be easier to sell the 1.2 million-square-foot project in its entirety, not in pieces. The time to sell is right, the broker said, because credit is loosening in commercial markets and real estate investment funds are ready to start spending again.
We’ve been thinking for a while that the City Place project had stalled, given how each plan from PNL became progressively less and less impressive as time went on. Most recently, they had abandoned the plan to demolish part of the old Tandy Center mall and re-open 2nd Street through the project – which was one going to be one of the more positive aspects of the plan, as the huge Tandy Center superblock seriously breaks up pedestrian patterns and getting 2nd back would have helped tremendously to re-open that part of Downtown and make it more walkable and connected. (The image above is from the initial, much more impressive redevelopment plan, with 2nd re-opened and a better mix of uses.) Will be interesting to see how quickly the property sells and what its eventual new owners plan to do with it – here’s hoping that the re-opening of 2nd Street and the outward-facing street level retail (not the existing mall style space) will be a part of the plan.
“real estate investment funds are ready to start spending again”?
Joe… I was confused by that statement as well. I don’t see anyone ready to invest in commercial real estate with $1.4T in commercial paper about to go into foreclosure.
Perhaps the Star-Telegram is talking to financial advisors from Earth-Two now.
Kevin… nice comic book reference.
So not surprised about this. The tower really should become apartments with retail on the bottom.
I am curious what the current occupancy rates are for all the apartments and condos downtown. Just looking at all the new square footage that has been built the last few years I wonder how much more the market can handle right now. Couple that with looming foreclosures, a nonexistent retail market and an anti-business administration in office, this may be a case of a developer selling to get out of the market before the guillotine drops.
“an anti-business administration”? Really?
I would not be arguing for more for-purchase condos, but I do still believe that downtown is underserved in terms of apartments. Apartment occupancy is always quite high, and most of the buildings are on the high side of the price line.
The Near Southside is even more underserved in terms of apartments, which Fort Worth South stated in no uncertain terms at their recent banquet.
We try to be as apolitical as possible around here – I would advise everybody not to make this a Presidential politics discussion.
Occupancy rates change daily, but here is a look at current apartment occupancy rates;
Amli 7th Street Station 96%
Amli Upper West Side 94%
The Depot 94%
Firestone Upper West Side 97%
Lincoln Trinity Bluff 92%
Lincoln Park at Trinity Bluff 28% (Lease-up)
Lofts at West 7th Street 61% (Lease-up)
I personally do not think we need new apartments to come online within the next 2 years so all of us can drive rents back up. Downtown apartment rental rates are at their lowest in several years. It’s a perfect time for a renter to come from the suburbs and enjoy the lifestyle of downtown living without the hefty upcharge anymore.
With Museum Place and Parkside at So7 coming online, they will have another thing coming since reality hasn’t set in yet with them asking rates of $1495 for a one bedroom when the others are only around $850.
Are the 7th Street Station, Lofts at West 7th Street, So7 and Museum Place considered “downtown” apartments? I would consider Firestone the edge of westside and not downtown. Anything west of Firestone I personally would not consider downtown at least until you can get the proposed streetcar service up and running. With the numbers provided I would think another downtown “apartment” could be supported.