I'm guessing this will be built where the speculative galleria condo tower was proposed to be built.
Fourth office tower in the works at Galleria
Dallas Business Journal - March 2, 2007
by Holli L. Estridge
Staff Writer
Fortis Property Group is well into the planning stages on Galleria Tower IV, a 300,000- to 350,000-square-foot supplement to the Galleria Office Towers complex it acquired last year.
Jonathan Landau, CEO of the New York-based real estate investment firm, first announced the project at the Dallas Business Journal's Best Real Estate Deals awards event, held Feb. 22 at the Hilton Anatole.
Landau later said the fourth tower, which will be about 18 stories tall, is expected to include stacked parking on the lower levels and ground floor or mezzanine retail space. Construction is tentatively set to begin this fall.
The potential value of the project was not disclosed.
Fortis is in discussions with several local potential development partners and consultants and plans to make final selections over the next two to three months.
The 1.4 million-square-foot Galleria complex is one of the most recognizable commercial developments in North Texas. It sits at the northeast corner of Interstate 635 and the Dallas North Tollway, one of the busiest intersections in the state.
Shannon Brown, a leasing specialist for Chicago-based Jones Lang LaSalle, says most office buildings in the south Platinum Corridor submarket, which stretches from State Highway 190 south along the Dallas North Tollway to I-635, are more than 20 years old. She also said few buildings can accommodate a tenant that needs 50,000 square feet or more.
"The larger blocks of space are drying up," she said.
Brown, who handles office leasing at the Galleria complex, says the so-called Galleria micro-market is becoming even more popular due to the explosive residential growth up north in the Frisco area. As they move farther north, people don't want to drive all the way to downtown Dallas anymore, she said.
Fortis is fetching rents in the $27 to $30 per square foot range at International Plaza III, a 13-story, 350,000-square-foot tower it owns across the street. Landau said prospective tenants have expressed a strong interest in leasing about 250,000 square feet of office space in that submarket.
With demand such that it is, Fortis expects to have 75% to 85% of Galleria IV pre-leased, building the remaining portion as speculative space.
Fortis acquired the property for $285 million in 2006 from The Blackstone Group.
Louis Kestenbaum, Fortis Property Group chairman, said in a written statement he thinks the Galleria model will prove uniquely desirable to commercial tenants looking for a distinctive combination of top quality office space along with exceptional amenities, convenience and functionality.
hestridge@bizjournals.com | 817-693-0025
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