THE OLYMPIC    

1401 Elm Street  Dallas, Texas  

 PROJECT  SUMMARY  

   

 

OWNER/DEVELOPER: OLYMPIC 1401 ELM ASSOCIATES, LLC

 

Olympic   1401   Elm   Associates   acquired   the   iconic   1401   Elm  Street   in   the   heart   of   downtown   Dallas,   encompassing   an  entire   city   block,   in   February   2014.     Built   in   1965,   this  skyscraper   is   comprised  of  more   than  1.5  million  gross   square  feet   and   towers   50-­‐stories   above   the   Dallas   CBD’s   “central-­‐core”.      Once   the   tallest   building   west   of   the   Mississippi   River,   it  encompasses   the  entire  square  city  block  between  Elm,  Field,  Pacific,  and  Akard.    The  building  offers  spectacular  panoramic  views  of  the  entire  city.    Originally  designed  as  office  space  for  First  National  Bank   in   the  heart   of   downtown  Dallas,   this   50-­‐story  tower  easily  converts  to  residential  and  retail  use  because  of  its  floor-­‐to-­‐ceiling  glass  and  shallow  floor  plates.    Once  completed,  1401  Elm  will  be  downtown’s  most  notorious  skyscraper   that   will   have   480   new   luxury   residential   rental  units,  135,000  SF  of   retail,  900  parking  spaces,  and  wonderful  recreational  amenities  on  the  Ninth  Floor.        The   Property   will   be   pedestrian   friendly   with   enhanced  sidewalks  and  landscaping  as  well  as   improved  connections  to  the   nearby   Dallas  Area   Rapid  Transit   (DART)   central   Station,  which  will  be  integrated  into  the  project.          The  Property’s  lower  floors  are  ideal  for  multi-­‐level  urban  retail.    It’s   split-­‐level   first   and   second   floors   are   perfect   for   an   urban  grocer,   high-­‐end   restaurant,   soft   good   retailers,   and   other  neighborhood   retailers   that   can   accommodate   1401’s  residents,   other   neighborhood   residents,   visitors,   and  employees  of  this  central  downtown    area.    Above   the   new   urban   retail   and   the   900   proprietary   parking  spaces,  and  below  the  480   luxury   rental   residential  units  with  the  best  views  in  the  city  of  Dallas  sits  the  Ninth  Floor.     It   is  a  full-­‐city   block   of   outdoor/indoor   urban   rooftop   deck   that   will  provide  the  feeling  of  the  “live/work/play”  lifestyle  to  residents  in   the  heart  of   the  newly   revitalized  Downtown.    The   rooftop  deck   will   have   outdoor   seating   surrounding   a   resort-­‐style  infinity  edge  heated  pool  and  spa  with  waterfalls;  outdoor  fire  pits,  grills,  cabanas,  dog  walk  area,  lounge  areas  for  relaxation  and   spa   treatments   facility   and   gym   with   state-­‐of-­‐the-­‐art  equipment  and  exercise   services;   state-­‐of-­‐the  art  multi-­‐media  theatre;   party   rooms,   business   technology   center   area;   and   a  pet  concierge  and  grooming  services.  

What  once  was   the   landmarked  Petroleum  Club  on   the  49th   floor   will   be   converted   to   a   restaurant.     The  restaurant   guests   will   have   access   up   to   the   50th   floor  Observation  Deck   to   delight   in   an   unparalleled   view   of  Dallas  and  its  surrounding  area.    The  Development  Team  alongside   Merriman   Associates,   the   project   architect,  and   the   engineering   team   have   spent   14   months  carefully   planning   the   design   and   pricing   the  construction  of  the  Property.      In  August,  a  construction  crew  of  more  than  120  persons,  led  by   the  developer  and  Turner  Construction  Company  commenced   on   a   14-­‐month   interior   demolition   and  asbestos  remediation  program—they  are  more  than  50%  complete.     In   concurrence   with   the   remediation,  construction   drawings   were   completed   in   March;   final  pricing   of   the   project   is   underway   and   the   GMP   from  Turner   is   expected   May   22nd.   Total   construction   hard  costs  are  estimated  to  be  $  126.7  million.          In  January  2014,   the  development  team  was  awarded  a  $50  million  TIF  grant  from  the  City  of  Dallas.    Because  of  it’s  outstanding  location  and  sheer  scale,  the  Olympic  is  at  the  top  of  the  City’s  list  for  redevelopment.    Dallas   has   been   pro-­‐active   in   supporting   the  redevelopment  of  the  CBD.    Over  $165  million  in  capital  investment   was   approved   in   the   City’s   2006   Bond  Program,  and  another  $220  million  was  approved  in  the  2012  Bond  Program.   In  2012,  Klyde  Warren  Park,  a  5.2-­‐acre   $100  million   public   park,  was   completed,   bridging  the   divide   between   the  CBD   and  Uptown   and   bringing  additional   life   and   energy   to   the   area.   Other   parks  recently   added   to   the   Dallas   CBD   include   Main   Street  Garden  Park  and  Belo  Garden.          In   2014,   the   Downtown   Connection   TIF   had   invested  more   than   $290   million   in   Downtown   projects.  Within  the   TIF   District   boundaries,   that   has   resulted   in   more  than  $2.8  billion  in  value.      In   addition   to   Dallas’   TIF   investments,   the   City   is  spending   $1.35   Billion   to   upgrade   infrastructure,  including   a   second   Downtown   light   rail   alignment   and  modern  streetcar  system.    

1401   Elm’s   1.5   million   gross   square   feet   lends   itself   to   a  unique  conversion  opportunity.        Multi-­‐Family—Starting  on  the  Building’s  9th  floor,  shallow  bay   depths   and   floor-­‐to-­‐ceiling   glass   provide   amazing  views  of  the  city  of  Dallas  and  it’s  surrounding  areas  for  all    of  the  480  luxury  rental  residential  units.      Retail—The   Building’s   readily-­‐available   DART   access,  abundant  parking,  and   full-­‐city  block  open  air  appeal  will  provide   135,000   square   feet   of   retail   for   residents,  workers,   and   shoppers   of   the   downtown   market.    Nowhere   in   the   central   core   is   there   another   block   of  large,  contiguous  retail  space  such  as  1401’s.    Parking—The   Building   will   have   900   proprietary   parking  spaces.    This   is   much  more   than   required   for   residential  and  retail  uses.        The  Ninth  Floor—This  wonderful  outdoor  amenity  reaches  all   four  corners  of  the  city  block  with  breathtaking  views.    This   open   air   resort-­‐style   amenity   area   will   be   a   great  getaway  for  the  tower  residents.  

Located  at  the  convergence  of  I-­‐30,  I-­‐35E  and  I-­‐45,  the  Dallas  CBD  is  the  hub  of  the  DART  Light  Rail  network,  and  has  close  proximity   to   both  Dallas   Love   Field   and  DFW   International  Airport.        1401  Elm   is   located   in  the  Main  Street  District  –  Downtown  Dallas’  most  vibrant  district.  The  Main  Street  District  is  home  to   landmark   destinations   including   the   Neiman   Marcus  flagship   store  and  headquarters,  Comerica  Bank  Tower,   the  Joule  Hotel,  which  recently  completed  a  $80MM  renovation  and  expansion  and  numerous  other  restaurants  and  lounges.      The   Building   sits   prominently   on   the   main   transportation  nexus   of   the   DART   Light   Rail   System,   the   Akard   Street  Station,   as   well   as   major   bus   lines.     From   here   trains   go  directly   to   Dallas/Fort   Worth   and   Love   Field   Airports,  connecting  passengers  to    flights  throughout  the  world.    In   2000,   Downtown   Dallas   was   home   to   less   than   200  residents.   In   just   over   ten   years,   the   population   of  Downtown  Dallas  has  grown  to  more  than  40,000  residents  within   the   fifteen   districts   that   make   up   Downtown   and   a  daytime  workforce  of  an  estimated  150,000  in  the  urban  core  alone.      Downtown  Dallas   has   repositioned   itself   in   recent   years   as  not   just   the   largest  employment  center   in  North  Texas,  but  also  as  a  premier  destination   to   for   living,  dining,   shopping  and   entertainment.   Retailers,   restaurants   and   cultural  destinations   are   opening   at   a   more   aggressive   pace   than  ever.    Downtown  is  home  to    the  largest  Urban  Arts  District  in  the  country.  

    DOWNTOWN  DALLAS  STATE  OF  THE  UNION    

In  2014,  there  were:  •  5,000  new  jobs  were  created  in  downtown  Dallas;    •  More   than   2.5   million   square   feet   of   new   office  

leases,  renewals  and  expansions  in  downtown;  •  More   than   60,000   square   feet   of   startups   in  

downtown  Dallas;  •  The   largest   change   in   ownership   of   properties  

occurred   since   the   1980’s   with   millions   of   dollars  reinvested;    

•  More   than  4,600   residential   units  were   either   under  construction  or  announced  in  2014;    

•  Dallas   Farmers   Market   Phase   1   was   completed   and  opened  for  business;  

•  The  Wright  Amendment  at  Dallas’  Love  Field  Airport  was   allowing   non-­‐stop   flights   throughout   the  country;  

•  The   DART  Orange   Line   opened   from   downtown   to  DFW  Airport;    

•  The  metroplex  had  more  than  44  million  visitors  last  year,   which   attributed   to   $7.2   billion   in   direct  spending.  

In  2015,  there  will  be:  •  1,100   new   hotel   rooms   in   the  CBD   including   a   new  

Hilton   Curio,  Westin   Hotel,   Hilton   Garden   Inn,   and  the  Saint  Elm  (a  boutique  hotel);  

•  A  movie  theater;  •  More  than  35  new  restaurants  and  additional  retail;  •  Downtown   plans   new   aggressive   Initiatives   on  

education,   walkability,   the   arts,   housing,   and  transportation.  

STATISTICS   DOWNTOWN  DALLAS   DALLAS  

Median  Household  Income  

$  73,920   $  41,254  

Bachelor’s  Degree  or  Higher  

60%   29.6%  

Average  Age   Young  professional  26-­‐35  years;  and  Baby  

boomers  

35    

Dallas   is   the   ninth   largest   city   in   the   nation   with   a  population  of  1.24  million  and   is  part  of  the  fourth-­‐largest  metropolitan  area  in  the  nation  with  a  population  of  6.945  million,  an  almost  5%  increase  since  2013.        Dallas  covers  approximately  343  square  miles  and  was  once  the   mecca   for   the   oil   and   cotton   industries,   due   to   its  position   along   numerous   railroad   lines.   Furthermore,  Dallas   developed   a   strong   industrial   and   financial   sector,  and  a  major   inland  port,   as   a   result   of   its   central   location  within  the  United  States  due  largely  to  the  presence  of  the  Dallas/Fort  Worth   International  Airport,   the   fourth  busiest  airport,  offering  nearly  1,750  flights  per  day  and  providing  non-­‐stop   flights   to   145   domestic   and   47   international  destinations.            This   ultra   modern   and   sophisticated   city   attracts  worldwide  travelers,  making  the  area  the  No.  1  visitor  and  leisure  destination  in  Texas.  Dallas  is  a  leading  business  and  meeting   city.   In   2014,   it   was   ranked   as   the   third   largest  concentration   of   Fortune   500   companies—18   area  businesses,  including  Exxon  Mobil,  Southwest  Airlines  and  Texas  Instruments.    The   Metroplex   economy   is   the   6th   largest   in   the   United  States,   with   a   2013   gross   metropolitan   product   of   $448  billion;  and  it  is  ranked  14th  in  world  rankings  of  GDP  by  the  Organizat ion   for   Economic   Co-­‐operat ion   and  Development.     Dallas’   economy   is   primarily   based   on  banking,   commerce,   telecommunications,   computer  technology,   energy,   healthcare   and   medical   research,  transportation  and  logistics.        From  July  2013  to  July  2014,  employment  rose  3.9  percent.    Dallas  ranked  2nd  in  both  the  number  of  jobs  added  and  the  rate  of  job  growth.    Average   Retail   Sales   Per   Capita   in   Dallas   is   $12,837—  compared  to  New  York  City  at  $  9,411  and  Los  Angeles  at    $  9,705.              

 A  joint  venture  between  New  York-­‐based  Olympic  Property  Partners   and   Dallas-­‐based   BDRC   Partners   was   formed   to  acquire  the  Building—Olympic  1401  Elm  Associates,  LLC.    Olympic  Property  Partners  is  a  New  York  based  full-­‐service,  vertically  integrated  company  with  expertise  in  all  facets  of  development,  ownership  and  management  of   commercial  real  estate.  The  principals  of  Olympic  have  developed  and/or   owned   over   ten   million   square   feet   of   commercial  property,  including  residential,  office,  retail  and  hospitality  and   have   successfully   executed   a   variety   of   profitable  projects  over  the  past  four  decades.      Olympic  has  established  strong  strategic  relationships  and  partnerships   with   leading   domestic   and   foreign   financial  institutions,   international   corporate   and   private   investors  and   high   quality   architectural,   design   and   construction  firms.  Accordingly,  Olympic  has  both  the  financial  strength  and   development   expertise   to   turn   vision   into   reality   at  even  the  most  demanding  development  sites.    Olympic's  headquarters  are   located  on  Madison  Avenue   in  midtown   Manhattan,   NY,   with   satellite   offices   in   Dallas,  TX,  Stamford,  CT  and  in  London,  UK.    BDRC   Partners   is   a   full   service   commercial   real   estate  acquisition   and   development   group   specializing   in   adding  value   through   its   commercial   and   multi-­‐family   projects  while   delivering   strong   returns   to   its   partners.   Located   in  Dallas,  Texas,  our  team  has  extensive  experience  entitling,  developing   and   constructing   virtually   every   type   of  commercial   and   residential   property   and   working   with   a  broad   range  of  government  agencies,   community   interest  groups,  and  property  owners  to  create  projects  in  which  all  invested   parties   take   pride.   We   offer   a   unique   approach  that   is  enabled  through   innovative,  strategic   thinking  and  substantiated  with  a   long  history  of  successful  mixed-­‐use,  multi-­‐family,   office,   retail,   hotel,   and   land   development  projects;   we   are   committed   to   providing   comprehensive  quality  service  to  our  partners,  tenants,  and  neighbors.