Another Victory Park Tower Hits the Market
DFW: Another tower in Dallas’ Victory Park is on the market. Built in 2017 across the street from American Airlines Center, the 23-story Ascent tower has upwards of 300 units and is nearly 100 percent leased. Monthly rents average about $3,000. The building has various amenities, including private event space, lounge and gaming areas, conference rooms and a swimming pool and sun deck. And, of course, it’s in a prime urban sports and entertainment district. The Cirque, a 26-story residential tower in the same area, was recently sold to Madera Residential, a multifamily real estate investor based in Lubbock, that financed the purchase with a $62 million loan from MetLife Commercial Mortgage. Madera has nearly 30,000 rental units in North Texas and the Houston area and its total holdings are valued at more than $2 billion. Another tower across Stemmons Freeway—the 23-story, 314-unit Amli Design District tower—also is up for sale. The Cirque, the Ascent and the Amli all are in the same area where Goldman Sachs is developing its $500 million regional campus that will house several thousand financial services workers beginning in 2027. Apartment investment in North Texas has topped $2 billion in transactions this year, propelling DFW to the No. 1 spot in the country.
DFW: Several economic indicators are showing improvement, but the Fed warns that two more rate increases are likely this year. That has some economists concerned. Ending a cycle of 10 consecutive rate hikes, the Federal Reserve voted this week to hold off on another increase to its key short-term interest rate. The news fueled hopes that borrowing costs for home buyers could cool in the coming weeks, but only if the Fed continues to pause rate hikes. Mortgage rates are not directly tied to the Fed’s benchmark rate but are often influenced by it. However, the Fed on Wednesday signaled that two more increases to its benchmark rate are likely this year as it continues to manage the inflation rate. Mortgage rates are more closely tied to the 10-year Treasury bond, which responded this week to better inflation news with a rate decline to 3.7%. Freddie Mac reported that the 30-year fixed-rate mortgage averaged 6.71% last week, up from 5.23% a year earlier and an even further spread from the 3% averages in early 2022. The higher rates have added considerably to home buyers’ costs.
DFW: The Haggard family is turning the farmland that it owns in Plano into a mixed-used development similar to others along the Dallas North Tollway. The family has long had approval from Plano leaders to develop the more than 140 acres of farmland it owns on Spring Creek Parkway. It will now partner with Stillwater Capital, a Dallas developer, for a mixed-use development of retail, office, entertainment, residential and hotel spaces. The project’s first phase, which will start later this year, will be the three-story Haggard Farm Tillage Offices and garage that will total about 190,000 square feet and cost $20 million. It will be completed sometime next year. The total development will eventually have a food and entertainment area and about 25 acres of open space. When built out, it will have a 98-room hotel, 700 multifamily units, a 700,000-square-foot office footprint, plus townhomes and a senior housing complex. The Haggard family and Stillwater are active in other developments in the area. The Haggard family has a stake in two office buildings near the Dallas North Tollway. Stillwater has a stake in the PGA of America headquarters and resort, and in a $1 billion, 240-acre mixed-used project next to the PGA campus.
TEXAS: A Dallas developer fighting eminent domain over Fairfield Lake State Park south of Dallas now has another government body on its side. Todd Interests paid over $100 million to Vistra Corp. for 5,000 acres of land that includes Fairfield Lake State Park. The state of Texas had been leasing the state park land for 50 years but said it could not afford to buy it at Vistra’s price. After Todd Interests purchased the property, the developer announced its $1 billion development plans that include multimillion-dollar homes, the Freestone Club with a championship golf course and more. The Texas Parks & Wildlife Commission voted earlier this month to condemn the park in order to acquire it through eminent domain. The battle has now pitted those who want to retain recreational property for the public with those who vow to protect the property rights of owners. Now, the Freestone County Commissioners are siding with Todd Interests and have written a letter to state officials opposing the state’s use of eminent domain to retain the park land. Todd Interests says it is ready to begin its development and is prepared to fight the state.
DFW: A North Texas data company is expanding. CyrusOne, which operates one of the area’s largest data centers out of its Allen campus, will expand its capacity in one of its buildings there. Driven by customer demand, the company’s renovation and improvement to the data center will total more than 80,000 square feet at a cost of $50 million. The work is expected to start later this fall and be completed in the second quarter of next year. CyrusOne has two other data centers in North Texas, including Lewisville and Carrollton. It has more than 50 data centers around the world.
ALOHA: Ex-Supermodel Kathy Ireland can’t seem to find the right price or the right buyer for her Hawaiian oasis. Last September, she listed her 6,200-square-foot Honolulu beachfront home for $6.9 million. No takers. By the end of the year, she dropped it to $5.9 million. No deal. Now, it’s back up to $6.5 million. The home, which sits on a third-of-an-acre parcel with ocean views, has had a long history of celebrity guests since it was built and is named Villa Elizabeth in tribute to Elizabeth Taylor, whose portrait is one among many celebrity likenesses hanging on the villa walls. Ireland bought the property in 2006 for $4 million and has done extensive renovations. The home has numerous amenities inside and out, including entertainment areas inside and among the lush tropical landscaping. The home also operates as a venue for weddings, parties, and corporate events.