The 30-story Patriot Tower in downtown Dallas was sold last week to developers who will immediately begin a $100 million remodel of the tower to create offices for architectural firm HKS and Greyhound LinesWorks. Plans call for the upper 17 floors to be converted to apartments.
St. Paul Holdings, LP (an entity of Dallas-‐based Todd Interests) has partnered with Moriah Real Estate Company of Midland, Texas to acquire One Dallas Center, the landmark building, designed by celebrated architect, I.M. Pei & Partners. Patriot Tower at 350 North Saint Paul Street, was originally developed by Dallas visionary Vincent Carrozza, whose son Bob Carrozza, is a longtime business partner and contemporary of Shawn Todd. Todd Interests will restore Patriot Tower to One Dallas Center as it was originally named by Carrozza. This exciting reuse and adaptation of One Dallas Center will serve as a catalyst for continued growth and redevelopment in Downtown Dallas.
This 30 story, 600,000 square foot building will be transformed into one of the largest and most aggressive redevelopment projects in the Southwest. HKS, Inc. signed a 22-‐year agreement to relocate its corporate headquarters office to seven floors of a total 13 office floors at One Dallas Center while Greyhound’s Corporate Headquarters will be assuming the balance, on a long term lease as well. The upper floors are projected to be developed into luxury “For Lease” residences, offering a uniquely modern living experience in Downtown Dallas.
Located diagonally across St. Paul Street from One Dallas Center sits 400 North Ervay, the historic US Post Office and Court House, boasting 78 high end residences for lease, executive offices and a café/bakery currently under construction. 400 North Ervay, developed by Todd Interests is nationally recognized and has been honored with numerous awards including the Preservation Achievement Award. The redevelopment of One Dallas Center bolsters the significant efforts forwarded at 400 North Ervay, setting a new standard for reuse and adaptation in the Central Business District.
A staple of American culture and iconography, Greyhound Lines, Inc. signed a long-‐term lease to maintain the presence of their corporate and executive offices in One Dallas Center. Greyhound Lines visits 3,800 destinations with 13,000 daily departures across America. Dave Leach, President and CEO and Ted Burk, Senior Vice President of Corporate Development represented the interests of more than 500 corporate employees committed to One Dallas Center.
Ted Burk asserted that, “The location has always been ideal for Greyhound as a champion of public transportation because of its direct access to DART Transit and Light Rail Systems.” This year Greyhound’s corporate headquarters celebrated its 25th anniversary of calling Dallas home and looks forward to celebrating many more milestones from One Dallas Center.
HKS, a top-‐five ranked architectural firm with 29 offices worldwide, has been in continuous operation in Dallas since 1939. The firm provides clients with architectural, design, planning and engineering services.
Noted HKS projects in the Dallas/Fort Worth area include Cowboys Stadium, W Dallas – Victory Hotel, University of North Texas Apogee Stadium, Texas Scottish Rite Hospital for Children, Texas Christian University Amon G. Carter Stadium, Texas Woman’s University’s Boone Pickens Institute of Health Sciences – Dallas Center, Children’s Medical Center of Dallas, The University of Texas at Arlington College Park Center, Texas Capital Bank Building at 2000 McKinney Avenue, Rosewood Court and Baylor University Medical Center Roberts Hospital.
According to Ralph Hawkins, chairman and CEO of HKS, Inc., management spent four years evaluating relocation options throughout Dallas, both downtown and throughout the county. “We received many potential lucrative incentives from several cities,” he said. “However, we decided to continue to support the city of Dallas, as we have for the past 73 years.”
“Downtown Dallas has become a community that embraces creative and artistic thinking, and HKS acknowledges this by continuing to remain in our city,” said Dallas Mayor Mike Rawlings. “HKS is not only a globally recognized corporation that embraces the creative approach, they are also a great partner supporting so many initiatives important to Dallas. We are very pleased HKS will remain downtown, and look forward to our continued partnership.”
The firm currently is at 1919 McKinney Avenue in the 104,000-‐square-‐foot Adleta Building. The move allows the 500-‐person, Dallas-‐based architectural practice to relocate into a 144,000-‐ square-‐foot workspace in One Dallas Center. Situated in the Central Business District of Downtown Dallas, One Dallas Center is a modernist skyscraper, designed by I.M. Pei & Partners in 1979. HKS will occupy floors one through seven.
“Our team partnered with HKS to perform an exhaustive headquarters search across the U.S., said D/FW Market President Paul Whitman of Jones Lang LaSalle. He continues, “HKS was excited about the opportunity to move back into the Dallas Central Business District (CBD) and to be the architect for the redevelopment project, not only for their company but for the city. Across the Metroplex, several companies have taken notice of the resurgence happening in the Dallas CBD and are looking to move back to the core, just as HKS has.”
“One Dallas Center is an adaptive reuse building that showcases our support of downtown as a revitalized business and residential center,” Hawkins said. “The amenities offered to our employees include proximity to the DART train line, covered parking and nearby restaurants, banks and fitness center. These were the top suggestions on our employees’ lists, when surveyed about their office relocation priorities. It is estimated that more than 30 percent of our employees will use the DART train line.”
Shawn Todd of Todd Interests said, “I am humbled by the incredible support of our great city leaders. This development would not have been possible absent the leadership of Dallas Deputy Mayor Pro-‐Tem, Tennell Atkins, who chairs the Economic Development Committee and the tireless efforts of Councilmember Angela Hunt, who has championed the redevelopment of Downtown Dallas. We are also grateful to Dallas Assistant City Manager, Ryan Evans and Karl Zavitkovsky, Director of Economic Development for their dedication to this development project.”
Financing for the redevelopment was arranged by HFF, LP with a team led by Senior Managing Director Trey Morsbach, Steve Heldenfels, Cullen Aderhold and Michael George. HFF, LP also represented Bank of America in the sale of the building to St. Paul Holdings, LP which was led by Senior Managing Director, Andrew Levy. Shawn Todd added, “This complex transaction could not have occurred without the knowledge, skill and talent of HFF. I am thankful for the long-‐ term relationship Todd Interests has with this leading commercial real estate capital intermediary.”
The lender for the redevelopment of One Dallas Center is The Bank of the Ozarks. Dan Thomas, President of the Real Estate Specialties Group and Ross Jones worked tirelessly with Todd Interests and HFF, LP to ensure an efficient and timely closing. Shawn Todd shared “We were up against an extremely tight time frame on a very complex transaction. Bank of the Ozarks met our every need in getting the deal closed.”
“We are thrilled that HKS has elected to invest themselves in the community by continuing their commitment to Dallas and Downtown,” said John F. Crawford, president & CEO of Downtown Dallas, Inc. “This decision is indicative of many corporations, both in and outside of Dallas, that have realized the value of a downtown address as we continue our mission to build a vibrant core. HKS is contributing to this mission, and in return we are confident their employees and clients will enjoy the benefits of the new downtown Dallas.”
According to Kirk Teske, AIA, LEED AP BD + C, principal and chief sustainability officer with HKS, Inc., the headquarters will serve as the pilot project for U.S. Green Building Council (USGBC) LEED v4. “It will be the first of its kind for the USGBC as well as the city of Dallas.
The office headquarters will also support healthy building standards. The firm works in tandem with the Healthy Building Network, the USGBC, the Health Product Declaration Collaborative and BuildingGreen to promote the use of healthy building products and materials. “HKS will make environmentally informed decisions regarding building products used in the new corporate headquarters,” said Teske. “When selecting architectural building materials, we will request manufacturers disclose building product information through the Health Product Declaration.”
At a minimum, the firm will seek LEED Gold CI (Commercial Interiors) certification. A noteworthy green aspect of the design is the office’s innovative integrated lighting system. LED technology in conjunction with daylight harvesting sensors and dynamic window shading devices will dramatically improve indoor air quality and energy savings.
“Our goal is to create a meaningful and inspiring place that reflects our commitment to our people, our communities, sustainable design and our Texas heritage,” said Hawkins.
Renovation of the office space will begin immediately and it is anticipated that HKS will take occupancy in May 2013.