Changes proposed for Uptown Dallas project
The builders of a planned high-rise project in Uptown Dallas want to make significant changes in development due to the COVID-19 pandemic.
For the past two years, developer KDC has been working on plans for the mixed-use project on McKinney Avenue to be anchored by a grocery store on Central Market. The nearly $ 200 million development was to include a shopping mall, office tower, residential high-rise, and hotel.
KDC planned to lay the foundation stone for the project this year, which would replace a long-vacant supermarket building.
Now the developer is asking for approval from urban areas to revise the huge development.
Project officials tell city planners that “the unexpected COVID-19 pandemic has decimated commercial property financing and eliminated the proposed 156-room Marriott AC Hotel and KDC’s 500,000-square-foot Class A office building.”
Instead of the office tower and the hotel, KDC wants to increase the size of the project’s living area to “maximum permitted residential units to offset the COVID impact”.
The project would still have boutique office space.
The pandemic has severely reduced the demand for office space in the Dallas area and hit the hotel business particularly hard. Several office and hotel projects in North Texas have been delayed or canceled due to COVID-19.
Office use in the Dallas-Fort Worth area decreased by more than 4 million square feet in 2020 – the largest decrease in decades.
KDC has not submitted any new plans for the newly drawn project. It’s just a matter of asking the town planning commission for permission to go that route.
KDC’s McKinney Avenue development was one of the most anticipated projects in Uptown due to the Central Market Store. The high-end grocer has a large following in Dallas, but no location nearby.
Competitors Whole Foods and Tom Thumb have already opened stores in the Uptown region.
KDC had previously announced that it would build a 19-story tower on McKinney Avenue. The central market would occupy the lower levels of the mixed-use project.
Dallas architect Omniplan and San Antonio design firm Lake | Flato created the original designs for the development, which will occupy most of the 3-acre block on Lemmon Avenue between McKinney and Oak Grove.