investing in oak cliff prepared by: joe lumbley jp lumbley & associates llc investment real...

Investing in Oak Investing in Oak CliffCliff

Prepared by:Prepared by:Joe LumbleyJoe Lumbley

JP Lumbley & Associates LLCJP Lumbley & Associates LLCInvestment Real EstateInvestment Real Estate

214-405-3417 (cell)214-405-3417 (cell)214-941-3417 (office)214-941-3417 (office)

[email protected]@lumbley.comwww.dallasincomeproperties.comwww.dallasincomeproperties.com

Call Joe Lumbley 214-405-3417

Area LocatorArea Locator


LocationLocation

Most of North Oak Cliff is located between Most of North Oak Cliff is located between two and three miles from downtown Dallas.two and three miles from downtown Dallas.


Drive TimesDrive Times

Within a 5-8 minute drive time to Within a 5-8 minute drive time to downtown. Becoming more and downtown. Becoming more and more important with $5 gasmore important with $5 gas


Dallas Development Dallas Development HistoryHistory

In the 20In the 20thth century, Dallas has historically century, Dallas has historically grown to the north. Anything south of the grown to the north. Anything south of the Trinity River was considered “bad areas” and Trinity River was considered “bad areas” and got little or no city support and growth.got little or no city support and growth.

In the late 20In the late 20thth century, Dallas had developed century, Dallas had developed most or all of the land within the city to the most or all of the land within the city to the north. The city fathers had a decision to make. north. The city fathers had a decision to make. Continue development to the north where the only Continue development to the north where the only

land was in the suburbs, and lose tax revenue to the land was in the suburbs, and lose tax revenue to the suburbssuburbs

Begin developing land south of the TrinityBegin developing land south of the Trinity


Dallas Development Dallas Development HistoryHistory

For most of the 20For most of the 20thth century, there have been plans century, there have been plans floated for a Town Lake or some other development floated for a Town Lake or some other development taking advantage of the almost totally-neglected taking advantage of the almost totally-neglected Trinity River running just south of Dallas. This river Trinity River running just south of Dallas. This river once sported riverboat traffic that connected to east once sported riverboat traffic that connected to east Texas and the Mississippi River, but this was Texas and the Mississippi River, but this was abandoned when the railroads became the primary abandoned when the railroads became the primary means of transport of goods.means of transport of goods.

Finally, in the late ’90’s, citizens voted for a Trinity Finally, in the late ’90’s, citizens voted for a Trinity River Corridor which would include a green space River Corridor which would include a green space bigger than Central Park in NYC , a chain of lakes, bigger than Central Park in NYC , a chain of lakes, recreational and ecological attractions, and recreational and ecological attractions, and transportation improvements in the southern sector transportation improvements in the southern sector of town. Total cost of the project is about $2 billion.of town. Total cost of the project is about $2 billion.


Trinity River ProjectTrinity River Project The Trinity River Project consists of The Trinity River Project consists of

several things that will benefit North Oak several things that will benefit North Oak Cliff.Cliff. Three new privately/publicly funded bridges Three new privately/publicly funded bridges

designed by world-renowned architect designed by world-renowned architect Santiago Calatrava. These bridges are to be Santiago Calatrava. These bridges are to be signature bridges and will immediately signature bridges and will immediately identify Dallas much in the same way that the identify Dallas much in the same way that the Golden Gate Bridge identifies San Francisco.Golden Gate Bridge identifies San Francisco.

On the north side of these bridges is On the north side of these bridges is downtown Dallas. On the other side is North downtown Dallas. On the other side is North Oak Cliff.Oak Cliff.


Calatrava BridgesCalatrava Bridges


Land Use PlansLand Use Plans

The Trinity River Corridor project has a land The Trinity River Corridor project has a land use component, in addition to its flood control, use component, in addition to its flood control, transportation, and recreational components.transportation, and recreational components.

The North Oak Cliff side of the river at the The North Oak Cliff side of the river at the southern bases of the three new bridges has southern bases of the three new bridges has been historically a poorer section of town, with been historically a poorer section of town, with lots of apartment buildings following along lots of apartment buildings following along southern riverbanks. The new land use plan southern riverbanks. The new land use plan calls for demolition of these old apartments calls for demolition of these old apartments and replacing them with new townhouses, and replacing them with new townhouses, condos, retail, and recreational opportunities.condos, retail, and recreational opportunities.


New Land Use PlansNew Land Use Plans

City plans call for high-density residential City plans call for high-density residential development to follow the south side of the development to follow the south side of the river. Condos and townhouses will have river. Condos and townhouses will have river and lake views, as well as views of river and lake views, as well as views of downtown Dallas.downtown Dallas.

The highest uses are planned for this side of The highest uses are planned for this side of the river, near the I-30 bridge. This is the river, near the I-30 bridge. This is planned to be an extension of the Central planned to be an extension of the Central Business District, essentially extending Business District, essentially extending downtown Dallas to the south side of the downtown Dallas to the south side of the Trinity River.Trinity River.


Tax Increment FinancingTax Increment Financing

The preferred method by which the City The preferred method by which the City of Dallas provides development of Dallas provides development incentives is through the development incentives is through the development of a TIF (Tax Incremental Financing) of a TIF (Tax Incremental Financing) district. North Oak Cliff has three TIF district. North Oak Cliff has three TIF Districts:Districts: Oak Cliff Gateway (Marsalis/Beckley/Zang)Oak Cliff Gateway (Marsalis/Beckley/Zang) Fort Worth Avenue (along Ft. Worth Fort Worth Avenue (along Ft. Worth

Avenue/CommerceAvenue/Commerce 12 Hills (Now FZ-16) (along Davis and 12 Hills (Now FZ-16) (along Davis and

north on Westmoreland)north on Westmoreland)


How a TIF worksHow a TIF works The City sets out goals for improvement The City sets out goals for improvement Individual developers propose projects Individual developers propose projects

which will raise the appraised value of which will raise the appraised value of properties in the TIFproperties in the TIF

City rebates some of these tax benefits to City rebates some of these tax benefits to the developer in the form of infrastructure the developer in the form of infrastructure development, tax abatements, and other development, tax abatements, and other benefits which are of value to the developerbenefits which are of value to the developer

City eventually sees the properties go onto City eventually sees the properties go onto the tax rolls at full market value, after the tax rolls at full market value, after benefits from the TIF have been distributed.benefits from the TIF have been distributed.


Typical TIF DevelopmentTypical TIF Development Developer buys up high-density land, usually Developer buys up high-density land, usually

with old, obsolete apartments in placewith old, obsolete apartments in place Developer razes the apartmentsDeveloper razes the apartments Developer comes to the City with a plan for Developer comes to the City with a plan for

redevelopmentredevelopment When a TIF plan is finalized, developer When a TIF plan is finalized, developer

builds the project and enjoys several years builds the project and enjoys several years of little or no taxes, and has the City make of little or no taxes, and has the City make infrastructure improvements in the area infrastructure improvements in the area which make the developer’s property more which make the developer’s property more valuable.valuable.


Oak Cliff TIF Oak Cliff TIF DevelopmentsDevelopments


Why this is important to Why this is important to InvestorsInvestors

Anybody can talk a good story. You can Anybody can talk a good story. You can get info from neighborhood associations, get info from neighborhood associations, business groups, Realtors®, developers, business groups, Realtors®, developers, landlords, and historical groupslandlords, and historical groups All of this info may be subject to questioning, All of this info may be subject to questioning,

as each group usually has it’s own axe to as each group usually has it’s own axe to polish.polish.

Many of these groups are not businesspeople Many of these groups are not businesspeople and their impressions may or may not be and their impressions may or may not be valid in making business decisionsvalid in making business decisions


Business CaseBusiness Case One thing that can’t be “spun” is actual dollar One thing that can’t be “spun” is actual dollar

expenditures. The old adage holds true. “Follow the expenditures. The old adage holds true. “Follow the Money”. And following the money shows that all over Money”. And following the money shows that all over Oak Cliff, the “big boys”, the pros in the development Oak Cliff, the “big boys”, the pros in the development business, are making significant financial investments business, are making significant financial investments in the future of North Oak Cliffin the future of North Oak Cliff

The City of Dallas is betting almost $2 billion on the The City of Dallas is betting almost $2 billion on the Trinity River CorridorTrinity River Corridor

Downtown Dallas has gone from a ghost town after six Downtown Dallas has gone from a ghost town after six pm to a vibrant living neighborhood in the last ten pm to a vibrant living neighborhood in the last ten years.years.

The economics of gas prices point to increasing value The economics of gas prices point to increasing value in close-in, urban living close to work and in close-in, urban living close to work and transportation. With gas at $5/gallon, people don’t transportation. With gas at $5/gallon, people don’t want to commute 50 miles to work.want to commute 50 miles to work.

investing in oak cliff prepared by: joe lumbley jp lumbley & associates llc investment real...

Documents

trinity river project

north oak cliff

trinity slide

neglected trinity river

trinity river corridor

downtown dallas

mississippi river

new bridges