Who's Adding Big Space to DFW's Bulging Construction Pipeline?
Granite Properties just started construction on its 306k SF Granite Park V and announced plans to build a 28k SF restaurant row. Those join a huge slate of projects in DFW and that's why we’re excited to bring you Bisnow’s Dallas Construction & Development event at The Berkshire at Preston Center on Dec. 11, starting 8am.
Granite Properties director David Cunningham (left, with BOKA Powell’s Caroline Edsell and Don Powell at the Hilton Dallas/Plano Granite Park grand opening, which has also been the largest amenity improvement) tells us the next project--called The Boardwalk--will overlook the water feature in front of the newly opened 299-room Hilton Granite Park hotel and conference center along SH 121. The space should house five or six restaurants. Retail Street Advisors’ John Giesler and Aaron Stephenson will handle leasing of the space. Omniplan is designing the project.
The Boardwalk will complement the Hilton by adding the needed amenities for the development. Granite Park IV and Hilton opened this summer and the office tower is already 84% leased, David says. It should be full by the end of Q1. Granite Park V (a twin to IV) started construction in September and already has the top two floors leased. Among the tenants to ink deals are Mitel and Heartland Payment Systems (10 floors are still available). Once Granite Park V is completed, the park will be at 1.5M SF of Class-A office space. At full build-out, it could boast 3M SF of office development in addition to the hotel and other amenities, David tells us.
David, who runs development and construction management for Granite, says Granite leadership is in the midst of creating a development plan for Cedar Maple, a three-building complex across from the Crescent in Uptown. The smaller '80s-era project could see the addition of a nine-story 150k SF building or the firm may wait a few more years to re-examine the market. Granite is also looking at some surburban opportunities across the Metroplex. It has two projects on the drawing board in Denver for a 300k SF office building on a six-acre greenfield site and a 150k SF podium building expansion of a 600k SF property in the Denver Tech Center; and a 500k SF $260M project in Cambridge, MA, in which Granite is buying a 60-year-old jail/courthouse building and doing a complete redevelopment into a mixed-use project.
Granite is a mid- to long-term holder of its properties, disposing of about 15% of its portfolio each year, David tells us. However, Granite’s leaders have some core assets that are the center of the portfolio (Granite Park and 1717 McKinney, pictured, are among those kept long-term). Granite’s leaders think this cycle will last into 2018 before the next downturn, barring any unforeseen shock events, he tells us. Personal: This Thanksgiving, David's entertaining his family at their new home in Southlake. Sign up for the event here!