Date post: | 14-Apr-2017 |
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THE OLYMPIC
1401 Elm Street Dallas, Texas
PROJECT SUMMARY
OWNER/DEVELOPER: OLYMPIC 1401 ELM ASSOCIATES, LLC
Olympic 1401 Elm Associates acquired the iconic 1401 Elm Street in the heart of downtown Dallas, encompassing an entire city block, in February 2014. Built in 1965, this skyscraper is comprised of more than 1.5 million gross square feet and towers 50-‐stories above the Dallas CBD’s “central-‐core”. Once the tallest building west of the Mississippi River, it encompasses the entire square city block between Elm, Field, Pacific, and Akard. The building offers spectacular panoramic views of the entire city. Originally designed as office space for First National Bank in the heart of downtown Dallas, this 50-‐story tower easily converts to residential and retail use because of its floor-‐to-‐ceiling glass and shallow floor plates. Once completed, 1401 Elm will be downtown’s most notorious skyscraper that will have 480 new luxury residential rental units, 135,000 SF of retail, 900 parking spaces, and wonderful recreational amenities on the Ninth Floor. The Property will be pedestrian friendly with enhanced sidewalks and landscaping as well as improved connections to the nearby Dallas Area Rapid Transit (DART) central Station, which will be integrated into the project. The Property’s lower floors are ideal for multi-‐level urban retail. It’s split-‐level first and second floors are perfect for an urban grocer, high-‐end restaurant, soft good retailers, and other neighborhood retailers that can accommodate 1401’s residents, other neighborhood residents, visitors, and employees of this central downtown area. Above the new urban retail and the 900 proprietary parking spaces, and below the 480 luxury rental residential units with the best views in the city of Dallas sits the Ninth Floor. It is a full-‐city block of outdoor/indoor urban rooftop deck that will provide the feeling of the “live/work/play” lifestyle to residents in the heart of the newly revitalized Downtown. The rooftop deck will have outdoor seating surrounding a resort-‐style infinity edge heated pool and spa with waterfalls; outdoor fire pits, grills, cabanas, dog walk area, lounge areas for relaxation and spa treatments facility and gym with state-‐of-‐the-‐art equipment and exercise services; state-‐of-‐the art multi-‐media theatre; party rooms, business technology center area; and a pet concierge and grooming services.
What once was the landmarked Petroleum Club on the 49th floor will be converted to a restaurant. The restaurant guests will have access up to the 50th floor Observation Deck to delight in an unparalleled view of Dallas and its surrounding area. The Development Team alongside Merriman Associates, the project architect, and the engineering team have spent 14 months carefully planning the design and pricing the construction of the Property. In August, a construction crew of more than 120 persons, led by the developer and Turner Construction Company commenced on a 14-‐month interior demolition and asbestos remediation program—they are more than 50% complete. In concurrence with the remediation, construction drawings were completed in March; final pricing of the project is underway and the GMP from Turner is expected May 22nd. Total construction hard costs are estimated to be $ 126.7 million. In January 2014, the development team was awarded a $50 million TIF grant from the City of Dallas. Because of it’s outstanding location and sheer scale, the Olympic is at the top of the City’s list for redevelopment. Dallas has been pro-‐active in supporting the redevelopment of the CBD. Over $165 million in capital investment was approved in the City’s 2006 Bond Program, and another $220 million was approved in the 2012 Bond Program. In 2012, Klyde Warren Park, a 5.2-‐acre $100 million public park, was completed, bridging the divide between the CBD and Uptown and bringing additional life and energy to the area. Other parks recently added to the Dallas CBD include Main Street Garden Park and Belo Garden. In 2014, the Downtown Connection TIF had invested more than $290 million in Downtown projects. Within the TIF District boundaries, that has resulted in more than $2.8 billion in value. In addition to Dallas’ TIF investments, the City is spending $1.35 Billion to upgrade infrastructure, including a second Downtown light rail alignment and modern streetcar system.
1401 Elm’s 1.5 million gross square feet lends itself to a unique conversion opportunity. Multi-‐Family—Starting on the Building’s 9th floor, shallow bay depths and floor-‐to-‐ceiling glass provide amazing views of the city of Dallas and it’s surrounding areas for all of the 480 luxury rental residential units. Retail—The Building’s readily-‐available DART access, abundant parking, and full-‐city block open air appeal will provide 135,000 square feet of retail for residents, workers, and shoppers of the downtown market. Nowhere in the central core is there another block of large, contiguous retail space such as 1401’s. Parking—The Building will have 900 proprietary parking spaces. This is much more than required for residential and retail uses. The Ninth Floor—This wonderful outdoor amenity reaches all four corners of the city block with breathtaking views. This open air resort-‐style amenity area will be a great getaway for the tower residents.
Located at the convergence of I-‐30, I-‐35E and I-‐45, the Dallas CBD is the hub of the DART Light Rail network, and has close proximity to both Dallas Love Field and DFW International Airport. 1401 Elm is located in the Main Street District – Downtown Dallas’ most vibrant district. The Main Street District is home to landmark destinations including the Neiman Marcus flagship store and headquarters, Comerica Bank Tower, the Joule Hotel, which recently completed a $80MM renovation and expansion and numerous other restaurants and lounges. The Building sits prominently on the main transportation nexus of the DART Light Rail System, the Akard Street Station, as well as major bus lines. From here trains go directly to Dallas/Fort Worth and Love Field Airports, connecting passengers to flights throughout the world. In 2000, Downtown Dallas was home to less than 200 residents. In just over ten years, the population of Downtown Dallas has grown to more than 40,000 residents within the fifteen districts that make up Downtown and a daytime workforce of an estimated 150,000 in the urban core alone. Downtown Dallas has repositioned itself in recent years as not just the largest employment center in North Texas, but also as a premier destination to for living, dining, shopping and entertainment. Retailers, restaurants and cultural destinations are opening at a more aggressive pace than ever. Downtown is home to the largest Urban Arts District in the country.
DOWNTOWN DALLAS STATE OF THE UNION
In 2014, there were: • 5,000 new jobs were created in downtown Dallas; • More than 2.5 million square feet of new office
leases, renewals and expansions in downtown; • More than 60,000 square feet of startups in
downtown Dallas; • The largest change in ownership of properties
occurred since the 1980’s with millions of dollars reinvested;
• More than 4,600 residential units were either under construction or announced in 2014;
• Dallas Farmers Market Phase 1 was completed and opened for business;
• The Wright Amendment at Dallas’ Love Field Airport was allowing non-‐stop flights throughout the country;
• The DART Orange Line opened from downtown to DFW Airport;
• The metroplex had more than 44 million visitors last year, which attributed to $7.2 billion in direct spending.
In 2015, there will be: • 1,100 new hotel rooms in the CBD including a new
Hilton Curio, Westin Hotel, Hilton Garden Inn, and the Saint Elm (a boutique hotel);
• A movie theater; • More than 35 new restaurants and additional retail; • Downtown plans new aggressive Initiatives on
education, walkability, the arts, housing, and transportation.
STATISTICS DOWNTOWN DALLAS DALLAS
Median Household Income
$ 73,920 $ 41,254
Bachelor’s Degree or Higher
60% 29.6%
Average Age Young professional 26-‐35 years; and Baby
boomers
35
Dallas is the ninth largest city in the nation with a population of 1.24 million and is part of the fourth-‐largest metropolitan area in the nation with a population of 6.945 million, an almost 5% increase since 2013. Dallas covers approximately 343 square miles and was once the mecca for the oil and cotton industries, due to its position along numerous railroad lines. Furthermore, Dallas developed a strong industrial and financial sector, and a major inland port, as a result of its central location within the United States due largely to the presence of the Dallas/Fort Worth International Airport, the fourth busiest airport, offering nearly 1,750 flights per day and providing non-‐stop flights to 145 domestic and 47 international destinations. This ultra modern and sophisticated city attracts worldwide travelers, making the area the No. 1 visitor and leisure destination in Texas. Dallas is a leading business and meeting city. In 2014, it was ranked as the third largest concentration of Fortune 500 companies—18 area businesses, including Exxon Mobil, Southwest Airlines and Texas Instruments. The Metroplex economy is the 6th largest in the United States, with a 2013 gross metropolitan product of $448 billion; and it is ranked 14th in world rankings of GDP by the Organizat ion for Economic Co-‐operat ion and Development. Dallas’ economy is primarily based on banking, commerce, telecommunications, computer technology, energy, healthcare and medical research, transportation and logistics. From July 2013 to July 2014, employment rose 3.9 percent. Dallas ranked 2nd in both the number of jobs added and the rate of job growth. Average Retail Sales Per Capita in Dallas is $12,837— compared to New York City at $ 9,411 and Los Angeles at $ 9,705.
A joint venture between New York-‐based Olympic Property Partners and Dallas-‐based BDRC Partners was formed to acquire the Building—Olympic 1401 Elm Associates, LLC. Olympic Property Partners is a New York based full-‐service, vertically integrated company with expertise in all facets of development, ownership and management of commercial real estate. The principals of Olympic have developed and/or owned over ten million square feet of commercial property, including residential, office, retail and hospitality and have successfully executed a variety of profitable projects over the past four decades. Olympic has established strong strategic relationships and partnerships with leading domestic and foreign financial institutions, international corporate and private investors and high quality architectural, design and construction firms. Accordingly, Olympic has both the financial strength and development expertise to turn vision into reality at even the most demanding development sites. Olympic's headquarters are located on Madison Avenue in midtown Manhattan, NY, with satellite offices in Dallas, TX, Stamford, CT and in London, UK. BDRC Partners is a full service commercial real estate acquisition and development group specializing in adding value through its commercial and multi-‐family projects while delivering strong returns to its partners. Located in Dallas, Texas, our team has extensive experience entitling, developing and constructing virtually every type of commercial and residential property and working with a broad range of government agencies, community interest groups, and property owners to create projects in which all invested parties take pride. We offer a unique approach that is enabled through innovative, strategic thinking and substantiated with a long history of successful mixed-‐use, multi-‐family, office, retail, hotel, and land development projects; we are committed to providing comprehensive quality service to our partners, tenants, and neighbors.