The Dallas City Council has voted to provide up to $96.1 million in economic support for the proposed 825,000 square foot Newpark development just south of City Hall, the Dallas Morning News.
The development entity is a local investment company partnership Hoque Global and Lanoha Real Estate Co., from Omaha.
The site, in the southern part of downtown Dallas, is bounded by Cadiz, Canton, South Akard and South St. Paul streets and now consists largely of surface parking lots. It is adjacent to City Hall, the Kay Bailey Hutchinson Convention Center, and one of two bridge parks proposed for construction over I-30.
READ ALSO: 5 States That Are Corporate Relocation Magnets
The incentive package will include up to $4.1 million in the form of an economic development grant and up to $92 million payable from future TIF district funds, according to the city council announcement.
The heart of the project will be One Newpark, a 38-story tower consisting of a lobby and retail space, with approximately six floors of parking above, followed by seven floors (240,000 sq. ) of office space and seven others of hotel space (245 guest rooms), surmounted by 15 residential floors of 268 apartments.
Council member Omar Narvaez said longer-term plans for the Newpark district include a fire station, public library and three schools.
The architects of the project are Merriman Anderson and Pickard Chiltonand the landscape architect is StudioExterior.
The property was one of the sites Dallas launched in 2017, when Amazon was looking for a second headquarters, according to the morning news.
Somehow still growing
Although the Dallas-Fort Worth office market continues to attract investors, its fundamentals remain challenging, according to a first quarter report from Newmark. Overall office vacancy is among the highest in the country, and while inflation has allowed landlords to keep rents down, they are still lower than in other cities in the Sun Belt.
The Dallas CBD office submarket totals 29.5 million square feet with an average vacancy rate of 29.6%. Year-to-date absorption was just 34,600 square feet and direct asking rent is averaging $27.86 per square foot.
Evidence of the Metroplex’s appeal to investors comes from the March purchase of the Trammell Crow Center by Regent properties for an undisclosed price.