Dallas, Texas

Energy Square

Type
Acquisition for Redevelopment
Square Feet
1,121,173 SF
Asset
Office
Strategy
Value-Add

The redevelopment of Energy Square transformed four disjointed, Class-B office buildings into an interconnected, Class-A office campus.

In July 2015, a joint venture between USAA Real Estate, GlenStar Properties and a third-party investment partner purchased the three-building Energy Square office campus with the intention of executing a small renovation to support a mark-to-market investment strategy. The partnership ultimately expanded its scope to acquire the historic Meadows Building and the Village Bakery, thereby assembling a 14 contiguous acre site adjacent to a light-rail station. These acquisitions provided an opportunity to redevelop disjointed buildings into a cohesive, interconnected, campus environment with opportunities for additional density.

The Redevelopment includes regrading to enhance walkability, renovating lobby and common areas, creating indoor and outdoor tenant lounges, fitness center, conference facilities and a pocket park.

Project highlights

  • The value-add investment strategy capitalizes on the market opportunity to create a Class-A office campus on Central Expressway positioning the asset to compete with the desirable submarkets of Uptown and Preston Center, but at a meaningful discount in rental rate.
  • The Meadows Building (1955 vintage) underwent a historical restoration.
  • In 4Q18, the world renown architectural firm, Gensler, relocated its Dallas office to the Energy Square campus while leasing 40k SF in the Meadows Building.
  • In 1Q19, the partnership completed a project that demolished the Village Bakery and replaced it with a parking garage, which ultimately allows the partnership to unencumber the parking from a surface parking lot (located within the campus near Energy Square I), and create future value through development of the two-acre parcel at the corner of Greenville and University.

Status

  • The redevelopment construction will be complete in late 2019.
Open Maps

Location details

6688 North Central Expressway
Dallas TX 75206