The Property is centrally located amid key transportation routes, attractions, and businesses.
- Great access to U.S. Highway 75, on which more than 258,000 vehicles drive per day, and Northwest Highway, which has a daily traffic volume of 56,000 vehicles.
- Three-minute walk to the Park Lane DART (Dallas Area Rapid Transit) light rail station, which provides more than 93 miles of track in North Texas, including routes to the CBD, State Farm/City Line, and DFW Airport
- 10-minute walking distance to The Hill Shopping Center that includes 30+ retailers and 25+ murals and artwork from local artists, and an 11-minute walk to Dallas’ premier shopping mall, North Park Center, that includes tenants such as Gucci, Tiffany, and Louis Vuitton
- A short driving distance to an abundance of retail and restaurants such as Preston Hollow Village ,The shops at Park Lane, Central Forest Shopping Center, Preston Royal Village, and Preston Forest Village
Bank of America is financing $126MM for the revitalization of The Village, Dallas’ famous 16-apartment community that is home to more than 10,000 residents; located less than a mile from 6500 Greenville, The Village serves as a major demand driver for the Property.
Civitas Real Estate Portfolio in Dallas
EL FENIX | Restaurant
KMPG PLAZA | Office
SIMPSON PLACE | Senior Living
HARVEST LOFTS | Multifamily
CANVAS HOTEL DALLAS | Hotel
OAKS TRINITY | Multifamily
ZANG TRIANGLE | Multifamily
VICTOR PROSPER | Multifamily
ALTA YORKTOWN | Multifamily
RESIDENCE INN BY MARRIOTT DALLAS AT THE CANYON | Hotel
LAKEWEST ASSISTED LIVING | Senior Living
ALTA STRAND | Multifamily
ALEXAN SKYLINE | Multifamily
28TWENTYEIGHT | Multifamily
3700M | Multifamily
ALTA MAPLE STATION | Multifamily
ENCORE | Call Center
ALOFT AND ELEMENT DUAL-BRANDED HOTEL BY MARRIOTT | Hotel
THE TRADITION AT LOVERS LANE | Senior Living
AC & RESIDENCE INN BY MARRIOTT DALLAS NORTH | Hotel
RED BIRD MALL | Retail
Dallas Metro Area Market Snapshot
JOB AND POPULATION GROWTH
Home to 7.7 MILLION PEOPLE, with an average household income of $72,501 ($64,212 U.S. avg), Dallas-Fort Worth is the largest metropolitan area in Texas and the fourth largest in the United States.
- >2,800 NEW RESIDENTS moved to DFW per week in 2019
- >2.6 MILLION NEW RESIDENTS are expected by 2030
- #1 METRO IN NEW RESIDENTS growth in the U.S. responsible for more than one-third of Texas' population growth in 2019
In the current expansion, the metro area has averaged over 100,000 new jobs each year, with an annualized growth near 3%. DFW's unemployment rate is only 3.0%, below the national average of 3.5% (U.S. Bureau of Labor Statistics, as of November 2019).
Thanks to its low cost of conducting business and access to a highly skilled labor force, DFW became a magnet for company relocation:
- Toyota Motors (4,100 jobs)
- Uber (3,000 jobs)
- McKesson Corp (1,500 jobs)
- CoreMark (8,400 jobs)
Sources: (i) bisnow, (ii) csnews, (iii) CoStar, January 2020
Every major North American market is accessible from Dallas by air in FOUR HOURS OR LESS
24 FORTUNE 500 COMPANIES
Including Exxon Mobil, McKesson, AT&T, Energy Transfer, and American Airlines (Dallas Morning News, as of May 2019)
SPORTS AND ENTERTAINMENT
Some of America's most popular professional sports teams call the Dallas region home, including the Dallas Cowboys in the NFL, the Dallas Mavericks in the NBA, and the Texas Rangers in the MLB.
Significant Economic Activity Boosting Office Market
OFFICE ACQUISITION MARKET
- The U.S. office market is projected to experience moderate increases in vacancy due to weaker market fundamentals. Regardless, the strong economic underpinnings have fostered a healthy office market in Dallas.
- Annually, the Dallas market has absorbed 6.5 million SF, just above the historical average. Construction activity remains robust, with 7.5 million SF delivered and around 8.2 million SF currently under construction. Even with current levels of development, vacancies should remain stable due to a significant portion of new space being pre-leased.
- The Central Expressway submarket is usually heavily traded, and volume has picked up in the past 12 months, with about $153 million in sales. A significant portion of recent volume was due to the sale of the 1.35 million SF City place Tower, the largest asset in the submarket.
- Owing to the submarket’s relatively high-quality stock, national and institutional investors are fairly active.
RENTS AND VACANCY
- Dallas rent growth is steady at about 2.5%, with many of the premier submarkets ranging from 3%-5% as tenants continue to clamor for new space in their flight to quality.
- Rents on 4- and 5- Star properties are between $26-$30/Sf as higher end properties are often able to take advantage of transportation and locational advantages while coming in at a discount to towers in Uptown and Preston Center. Average asking rents on 4- and 5-Star buildings in Central Expressway are about 35% below 4- and 5-Star assets in Uptown and 20% below those in Preston Center. The rent gap between submarkets leaves significant room for the Property’s rent growth post renovation.
- At 13.6%, vacancies have trended well below both the metro average and the submarket’s historical average for a few years due to a lack of new supply and generally steady absorption in existing stock.
- The Property’s submarket has currently no projects under construction over 30,000 SF.
CLASS A OFFICE VS. CLASS B OFFICE* IN DFW
- Class B vs. Class A occupancy gap continues to widen. DFW Class B has achieved an average occupancy of 85% from 2010-2019.
- DFW's Class A rents are 13%, or $2.63/SF above Class B rents. Civitas is underwriting to an average base rental increase of $2-$3/SF.
- Class B 5-year historical rent growth has averaged 2.7%. 2020 Class B rent growth projections is 1%.
* Class A Building: Newer build, well located, professionally managed, high quality standard finishes, larger tenant spaces, heavily amenitized. Class B Building: Slightly older, good quality management, standard finishes and adequate systems, lower income tenants, a few amenities.