South Dallas Ready for the Spotlight
Want to get a jump-start on upcoming deals? Meet the major Dallas-Fort Worth players at one of our upcoming events!
Southern Dallas is bigger than Atlanta, but developers are just starting to recognize its opportunities as revitalization efforts take off. That’s why we’re excited to hear from the experts about the future of this city-sized submarket at Bisnow's The Rise of South Dallas County event on Nov. 25 (8am) at the Sheraton Dallas.
Southern Dallas County is an underserved community, says Corinth Properties EVP Terrence Maiden. He sees unique use development opportunities to bring some of the daily-need services to the community. Plus, there’s an advantage to developing there because of the lack of competition, he says. The challenge is convincing some retailers and grocery stores that they can operate successfully and be profitable within these areas. The reality is, there are many residential pockets with great population density and solid incomes, Terrence says.
Corinth is finishing up development at the 40k SF Glen Oaks Crossings (southwest corner of I-35 and Loop 12) with national and regional tenants including Walmart, Dollar Tree, Hibbett Sports, CATO, Shoe Dept, IHOP, Taco Bell, Whataburger and QuikTrip. Phase 2 (adding another 30k SF) should start by mid-2015, Terrence tells us. Construction on the retail part of the 211-acre mixed-use Canyon in Oak Cliff (southwest quadrant of Westmoreland Road and I-30) should also start in 2015. Terrence tells us Corinth partnered with Stratford Land Co on the project to develop 30 acres fronting I-30, including a Residence Inn by Marriott to be built along with some national restaurants like Buffalo Wild Wings and others by mid-2015, with a 300k SF regional power retail center set to start immediately after that as part of Phase 2.
Construction wrapped up on Red Oak Crossings with Panda Express already open. Fuzzy’s Tacos, Sprint and Wingstop should open in January, Terrence tells us. Corinth is now planning a second phase that will be roughly 30k SF and should start next year with a Rue 21, Dollar Tree, Hibbett Sports and other tenants. Corinth is also partnering with Trammell Crow Residential on a proposed mixed-use project adjacent to the Sylvan/Thirty development, Alexan West. For Thanksgiving, the former TCU football standout will be celebrating with family and friends with good food and good football (with TCU playing UT).
Logistics is king in South Dallas County with three interstate highways and two railroad lines running right through the center of what’s been called Dallas County Inland Port, says Prime Rail Interests president Michael Rader (between Duke Realty SVP Jeff Thornton and CBRE project management director Brian Straley at a Bisnow event.) Most of the industrial growth is fueled by the Union-Pacific Dallas Intermodal Terminal as well as the FedEx Ground shipping terminal. Michael tells us he’s seeing deals in both the large (1M SF-plus) and small categories (up to 150k SF) in the area. Prime Rail has 324 acres of developed sites in Sunridge Business Park and 350 acres of developed sites in the 3,000 acre Prime Pointe project shovel ready for manufacturing and distribution users.
South Dallas is one of the largest parts of the City of Dallas, yet the disparity in infrastructure and commercial development is vast, says City Wide Community Development Corp CEO Sherman Roberts (between Dallas City Council member Dwaine Caraway and Sen. Royce West). Aging infrastructure and an absence of commercial development are two reasons the focus is on improving the Southern sector, Sherman tells us. The nonprofit housing and economic development organization focuses on the Lancaster Corridor, which is a gateway for the southeast part of Oak Cliff. The concept is to capitalize on the existing DART rail line by creating TODs, Sherman tells us. “We want to breathe new life into the neighborhoods here,” he says. "We’re doing catalyst projects using the City’s money to stimulate the community and attract the for-profit developers to come here.”
The Lancaster Corridor features a big employer – the VA hospital (the most-visited VA hospital in the US) – as well as a concentrated area of small businesses with UNT’s Dallas campus just a half-mile down the road. There’s a lot of growth potential, which is a good reason to focus here, Sherman tells us. Among projects in the works are a 45-unit multifamily complex for women with children. The loan for that project should close this month with construction starting in December, he tells us. There’s also a 10k SF office project (which should break ground in the next 30 days) near the 45–unit development and the new Rudy’s Chicken that City Wide CDC developed.
City Wide leaders are assembling land to complete the Lancaster Opal (a three-story, high-density, mixed-use development that will include ground floor retail with housing above), Sherman tells us. The nonprofit’s HQ (a 7,500 SF office building that also houses several other businesses) has already seen an interior rehab, but will be getting an exterior facelift, as well. The next project involves developing 46 single-family homes around UNT, he says.