Pacific Elm Properties Expects To Begin Office, Retail and Apartment Project Next Year
Originally posted by Candace Carlisle, CoStar News
A long-awaited two-tower project in downtown Dallas is getting closer to becoming a reality.
Pacific Elm Properties, an affiliate of Woods Capital, has filed a state permit to begin work next March on a $350 million mixed-use development near Field Street.
The project is expected to include office and retail space as well as about 300 apartments at 1100 McKinney Ave. and is scheduled for completion in May 2027, according to the permit.
Prior to the pandemic, Woods Capital closed on the development tract, as well as an adjacent site, in partnership with Dundon Capital Partners and Kaizen Development Partners.
At the time, Jonas Woods, founder and CEO of Woods Capital, said, “The development of upscale office, residential and retail along Field Street over the next few years will create exciting connections between Uptown, Victory Park, the West End, the Arts District and the Main Street District” with the site at the nexus of the neighborhoods.
Woods did not immediately return a request from CoStar News seeking more information on the project.
Woods, who has invested in neighborhoods he believes strongly in such as Knox-Henderson and downtown Dallas is upping the ante on Dallas’ central business district at a time when U.S. property prices have fallen for both office buildings and apartments, according to CoStar data.
Dallas-Fort Worth, the nation’s fourth-largest metropolitan area with more than 7.9 residents, is on track to have the largest volume of net office move-outs on record after tenants vacated 1.8 million square feet of office space more than they absorbed through mid-2023, according to the latest CoStar office market report for Dallas-Fort Worth. The region’s vacancy rate is 18%, with CoStar’s analysts expecting that rate to tick higher in the years to come with its base case scenario projecting it to hit 22% by 2025.
If the proposed project near Field Street delivers as expected in 2027, it could be a very different market with Goldman Sachs expected to be occupying its yet-to-be-built campus in Victory Park that year.
For the Record
The Beck Group is the designer for the Field Street project, according to the permit.