With tower on hold, developer reboots Uptown Dallas block
The pandemic has slowed a new residential tower in Dallas’ uptown.
But the developer of the project north of the city center will not bring the vacant property to a standstill.
Rastegar Property Co. plans to renovate the existing building on McKinney Avenue in 1899, which will eventually become a 26-story residential tower.
The existing commercial building – which was built in 1966 – is being renovated for new purposes, said developer Ari Rastegar. Since Rastegar bought the block in 2019, the mid-century building has been surrounded by a construction fence.
“I don’t want everyone to drive by and look at a wall for the next few years,” said Rastegar. “I was uncomfortable leaving this eyesore in a very important place in Uptown.”
Rastegar said he plans to remodel the building on the block that has been used from offices to nightclubs over the years.
“We’re going to go in and do something – whether it’s a restaurant or a coworking office,” he said. “Several banks have turned to us.
“At best, we will pay the property taxes and the transport costs, but that’s the right thing for now.”
The developer was hoping to be under construction now with its condominium tower.
But the COVID-19 pandemic put these plans on hold and Rastegar said he had to redesign the building.
“Building a building of this size and importance in Dallas will take a tremendous amount of time and money to get back to the drawing boards,” he said. “When the time comes, we will build the right building after the pandemic.
“I don’t know if it’s in two, three or five years.”
The Rastegar residential tower, unveiled in early 2020 for the property in Akard and McKinney, was designed by Chicago-based architect Solomon Cordwell Buenz with a glass facade and heavily landscaped balconies.
The McKinney Avenue Tower was clad in panels with more than 40,000 plants.
Rastegar said the current building will be upgraded with new facilities and landscaping to attract a tenant.
The Uptown project is one of several new companies that Rastegar Property has launched.
The real estate company is developing an office building in Austin.
And a real estate investment foundation has just been launched to buy homes in several cities in the Sun Belt – including Dallas and Austin.
It is planned to acquire a portfolio of smaller, older rental units in prime locations.
“We want to do between three and five REITs,” said Rastegar. “This year we want to raise at least $ 1 billion in capital.
“We will have approximately $ 4 billion worth of transactions on the Sunbelt over the next 18 months.”
Rastegar has just launched an initial private real estate investment trust offering of $ 200 million.
Rastegar has delayed construction of its planned high-rise in Uptown because of the pandemic.(Contributed | Rastegar Trait)