How Deep is Dallas’ Luxury Rental Pool?
D Magazine | S. Holland Murphy | June 30, 2016
Much has been made about the thousands of out-of-towners swarming North Texas, particularly the California transplants snatching up homes north of Dallas with hefty cash offers. But there’s a group of high-rise apartment developers who would love to feel more of the housing market’s heat blow their way as competition stacks up.
The number of high-rise apartments, defined as a building seven stories or higher, is likely reaching a peak this coming year. According to Axiometrics, a Dallas-based firm that analyzes the apartment market, the Dallas metro area saw six high-rise apartments built in 2015, a dozen more will be finished in 2016, and a whopping 30 high-rise apartments are expected to complete construction next year.
“There are plenty of people moving to the area, but the question is, are there enough jobs being created with salaries that can afford these high-price-point apartments?” says Stephanie McCleskey, Axiometrics’ vice president of research.
Nearly all of the city’s high-rise apartments built in the past two years are priced at more than $2 per square foot, with Uptown apartments the Brady (18 stories, 299 units) and The Jordan (23 stories, 212 units) coming in closer to $3 per square foot. The Jordan’s most budget-friendly option is a 735-square-foot one-bedroom at $1,925 per month, and the priciest penthouse is 2,262 square feet at $13,335 per month.
There’s a good reason why these centrally located rents are so steep. “The sites that are available [to be developed] tend to be pretty small, maybe an acre, so that constraint dictates going up,” says apartment industry analyst Ron Witten. Going up to high-rise level, explains Witten, means builders have to erect a steel-frame structure as opposed to a more affordable wood frame. The cost of high-rise materials and a shortage of skilled labor have driven up construction costs. Thus, high-dollar rents and a lingering question without an answer—yet.
“Nobody really knows how deep the market is for that luxury high-rise product,” Witten says. “The only way we’ll find out—and we will find out—is whether all these units lease or not without having to give away a lot of concessions or cut the rents.”
A year from now, Witten says, Dallas should have some firm answers. In the meantime, developers are asking themselves the same questions.
“Can people afford the rents for these high-rises? Of course I ask myself that!” says Doug Chesnut, CEO of StreetLights Residential, a company responsible for a number of recent high-rises, including the aforementioned Jordan, plus three apartment towers currently under construction. “I don’t think it’s an unlimited universe, but I also think it’s a different universe than what we were looking at 10 years ago.”
When Chesnut was building in Uptown a decade ago, most residents were under the age of 30. Since opening The Jordan in March, he says, 54 percent of the building’s leases are going to residents aged 40 and older. He likes this demographic. They’ve owned houses before. They have nest eggs. They don’t bail if they lose their jobs.
As of the end of May, more than half of The Jordan’s 212 units are leased, right on track with new developments in the area, according to Axiometrics’ research. But soon the $65 million Jordan will face more competition. Less than half a mile away, One Uptown will offer $75 million worth of luxury living when it opens at the end of the year. This includes two pools, one atop the 20-story tower for residents only and the other on the building’s second floor, Dallas’ first structural glass-bottom pool.
“We stepped up our building for finishes and amenities, and with the two world-class restaurants going in, it’s going to be unlike anything else,” says Rick Cavenaugh, president of One Uptown’s development firm, Stoneleigh Companies. “So we feel pretty good at the top of the food pyramid.”
But like looking into that glass-bottom pool, it’s hard to tell how deep the luxury rental market will go—until you jump.
Construction News | June 27, 2016
DALLAS/FORT WORTH – Drizzle didn’t dampen the dazzle of Dallas’ One Uptown topping out on June 2. The 20-story mixed-use luxury high-rise apartment tower was celebrated with an evening outdoor party held along Routh Street, where guests could get a sneak peek at the property.
Designed by Dallas architect Phil Shepard and architect of record Humphreys & Partners and built by Hunt Construction Group, One Uptown is slated for opening in the fall. The property will feature 198 apartments, 18,800sf of restaurant space, and a 480-car parking garage.
Rick Cavenaugh, CEO of One Uptown developer Stoneleigh Companies welcomed guests to the event, which showcased the the high rise’s marketing center’s unveiling, live music and specialties provided by the property’s two new restaurants, Fogo De Chao Brazilian Steakhouse and Style & Grace. –mjm
One Uptown high-rise gets topped
Katy Trail Weekly | Silver Hogue | June 10, 2016
One Uptown had a topping out ceremony on Thursday, June 2, at 2619 McKinney Ave., and featured the unveiling of the new marketing center and food from the property’s two new restaurants, Fogo De Chão Brazilian Steakhouse and Style & Grace. Stoneleigh Companies’ 20-story mixed use luxury high-rise is slated to open in the fall and includes 198 luxury apartments.
Tower To Feature Dallas’ First Glass-Bottom Pool
GlobeSt.com | Lisa Brown | June 6, 2016
Stoneleigh Companies’ luxury high-rise apartment tower, One Uptown, has topped out at 2619 McKinney Ave. and the 20-story mixed-use structure is slated to open in the fall. The development includes 198 luxury apartments, 18,800 square feet of restaurant space and a 480-car underground parking garage.
Rick Cavenaugh, CEO of Stoneleigh Companies tells GlobeSt.com: “Considering the premier location of our project, we feel it’s appropriate to brand the iconic tower in accordance with our address in the heart of Uptown. We have seen what a remarkable and inclusive community Uptown is and we are proud to be a new neighbor. We want our identity to reflect that sentiment and commitment to the city of Dallas.”
Tower amenities include a second-floor private fitness studio overlooking McKinney Avenue, Café One lounge, spacious and fully appointed modern units from studios to three bedrooms with floor-to-ceiling glass, and three floors of penthouse units with 11- to 12-foot ceilings. The building is capped off with a 9,000-square-foot rooftop and sky lounge with rooftop pool, relaxation zone with fire pit, demonstration kitchen, cabanas and entertainment room with unobstructed views of the Dallas skyline.
Lifestyle amenities at One Uptown include the Fogo de Chão Churrascaria, offering a distinctive and authentic Brazilian dining experience and cuisine delivered by gaucho chefs, as one of its premiere restaurants. The additional restaurant is Style and Grace affiliated with the new Fat Rabbit across the street on McKinney Avenue. Style & Grace will be a two-story restaurant with a patio bar, lounge and a second floor pool bar. This will feature Dallas’ first structural glass-bottom pool located directly over the building’s porte cochere main entry and valet parking drop-off.
Stoneleigh Companies, based in Barrington IL, teamed up with Dallas-based USA Infrastructure Investments LP to develop One Uptown. The project team includes Humphreys & Partners as the architect of record and Hunt Construction Group as the general contractor. Bank of America is the construction lender for One Uptown and SunGate Capital Funding 2 is the institutional equity partner. The all-glass building was designed by Dallas architect Phil Shepard.
20-STORY ONE UPTOWN TOPS OUT
Bisnow | Julia Bunch | June 6, 2016
The new luxury mixed-use tower at 2619 McKinney Ave, One Uptown, topped out on Thursday evening. Potential residents might be tempted by the 198 units with walk-in showers, quartz countertops and private balconies, and visitors will be lured by the mouthwatering meats at Fogo de Chao and Style & Grace restaurants. But let’s all focus on what’s really important—One Uptown will feature Dallas’ only glass-bottomed swimming pool and will be operated by Style & Grace (read: open to the public).
Stoneleigh Cos CEO Rick Cavenaugh teamed up with general contractor Hunt Construction Group and tower architect Humphreys & Partners for the $75M project. The two restaurants move in this fall, and Rick hopes to start accepting leases from residents in August. Rick addressed the crowd in front of Dallas city councilman Philip Kingston, Circo’s Lauren Santagati, Fogo’s Larry Johnson, SunGate Capital’s Ed Haddock and Infrastructure Investment’s Paul Cheng.
Illinois developer has plans to build 1,430 apartments in DFW
Dallas Business Journal | Candace Carlisle | June 6, 2016
Illinois-based real estate development firm Stoneleigh Cos. likes Dallas-Fort Worth a lot, with plans underway to build more than 1,400 luxury-grade apartments in Frisco, Carrollton and Fort Worth.
Developer Rick Cavenaugh is in the process of closing on two land sites in Fort Worth and Carrollton, with plans to get underway on construction of a new four-story apartment community in Frisco, just east of Toyota Stadium, by this summer.
In all, Stoneleigh Companies LLC plans to get underway on 1,430 apartments in the three different apartment communities, which will be developed over the next few years.
“Seventy percent of our business is in Texas for Stoneleigh Cos., and Dallas is our largest concentration of projects,” Cavenaugh told the Dallas Business Journal.”That’s because Dallas is Dallas. It’s been the strongest growing market for the past 30 years. Dallas is an important city, and it’s been good to us.”
Cavenaugh, who has been developing in Dallas since the early 1980s, said he’s seen North Texas grow quite a bit over the years and his team is bullish on the continued growth in the city.
Stoneleigh’s decision to work on a number of new apartment projects comes on the heels of the developer topping out of a Class AAA luxury apartment tower in Uptown, called One Uptown, which will bring 198-apartments to the Dallas neighborhood.
The developer, in a joint venture with Dallas-based Realty Capital, is under contract to buy about 34 acres of land along the new Chisholm Trail Parkway in Fort Worth, south of Hulen Mall.
The land deal is slated to close in July, and Cavenaugh said he expects to begin construction on a three-phase, 600-unit apartment community in spring 2017. The venture is working with the City of Fort Worth to move power lines to accommodate the project.
Cavenaugh is in negotiations with an architect on the Fort Worth community, with a general contracting bid yet to go out.
The Carrollton land deal for 3.6 acres at the northeast corner of Belt Line Road and Interstate 35E adjacent to the DART station is also expected to close in July. The 230-unit apartment community, being called The Switchyard, is expected to get underway by the end of the year.
Houston-based EDI International is the project architect on the Carrollton apartment community. Stoneleigh Construction Co. will likely be the general contractor.
Meanwhile, Stoneleigh expects to get underway on 600 homes at the northeast corner of Main Street and Frisco Boulevard in Frisco next month. The initial phase on the 10-acre property will include 380 apartments. Next year, Stoneleigh plans to get underway on the remaining 220 apartments.
The initial homes in the four-story Frisco apartment community are slated for completion in February 2017.
The community, called Waterford at Frisco, will sit within the 32-acre Frisco Fresh Market development, which will bring a test kitchen row with up-and-coming food and chef-driven concepts to this part of the region.
Each of the apartment communities are considered luxury with high-end finishes, and is reflective of the growing North Texas market, Cavenaugh said.
“You have to go with high-end finishes, and developers really can’t afford to build affordable units — apartments priced at $1.10 and under — in this day as costs to build have gone up dramatically,” he told me. “Most of the apartments being built, unless there’s a tax credit, are geared to the luxury consumer.”
Without tax credits or public subsidies, Cavenaugh said the firm can’t attract investors to the projects and these communities can’t get off the ground.
“This is a real challenge nationally to be able to stimulate affordable housing and to make sense with the costs of delivering these buildings today,” he said.
Luxury Apartment Building One Uptown Celebrates Topping Out
Candy’s Dirt | Joanna England | June 3, 2016
It seems as if the Uptown apartment market is about to get even more lofty perches, as One Uptown celebrated its “topping out” yesterday. The shindig, which attracted a throng of industry insiders, real estate aficionados, and media was the official unveiling of the high-rise’s marketing center with bites from Fogo de Chao and Style & Grace, cocktails, and life music, including remarks from Rick Cavanaugh, CEO of developer Stoneleigh Companies.
“Considering the premier location of our project, we feel it’s appropriate to brand the iconic tower in accordance with our address in the heart of Uptown,” Cavanaugh said. “We have seen what a remarkable and inclusive community Uptown is and we are proud to be a new neighbor. We want our identity to reflect that sentiment and commitment to the City of Dallas.”
Stoneleigh Companies’ 20-story mixed use luxury high rise is slated to open Fall 2016 and is already one of the most architecturally striking buildings in the Uptown neighborhood. The development includes 198 luxury apartments, 18,800 square feet of restaurant space, and a 480-car underground parking garage. One Uptown will represent the best-in-class residential high-rise rental building in Dallas with its modern elegant architecture, its unsurpassed amenity offering and its premier location.
The all glass building was designed conceptually by famous Dallas architect Phil Shepard. One Uptown’s modern architecture leverages its unique site plan by employing a graceful curve throughout its façade and will become the architectural achievement for residential high-rise buildings in Dallas.
Transit-oriented apartment project to be built in downtown Carrollton
The Dallas Morning News | Steve Brown | June 3, 2016
A developer building one of Uptown’s newest apartment towers is headed to the ‘burbs with a transit-oriented development.
Stoneleigh Cos. is just months away from finishing its 20-story One Uptown apartment high-rise on McKinney Avenue in Uptown.
Now Stoneleigh has tied up a building site next to downtown Carrollton’s DART commuter rail station for another apartment development.
“It’s going to be 230 apartments right at the corner of Belt Line and Interstate 35,” Stoneleigh CEO Rick Cavenaugh said. “It’s a no-brainer – you step out the front door and you walk right next door to the DART station.”
The 4-acre site is vacant and controlled by Realty Capital of Arlington. Cavenaugh said Stoneleigh has formed a partnership with the owner to build a 4-story rental community on the land.
“We are going to try and start construction by the first of the year,” he said.
Stoneleigh’s project will be the second urban-style apartment community developed adjacent to the downtown Carrollton DART stop.
Developer High Street Residential built the 311-unit Union at Carrollton Square starting in 2012. That project was purchased in 2014 by Fort Worth-based Olympus Property.
The Carrollton apartment project is one of a handful of developments Stoneleigh is working on in North Texas.
The firm is also about to start a rental community in the Frisco Fresh Market development on Main Street in Frisco.
“We are going to break ground in July on the first 380 units,” Cavenaugh said.
Stoneleigh also has a development site on Chisholm Trial Parkway in southwest Fort Worth.
An inside look at Dallas’ luxury $75M One Uptown tower
Dallas Business Journal | Candace Carlisle | June 3, 2016
Rick Cavenaugh still remembers the day he and his business partner acquired the former Hard Rock site to develop the wavy-designed building, One Uptown.
“We have been looking at this site for a year-and-a-half and the guy from Midland that wanted to build a night club called Paul on a Saturday morning and by noon on Monday, we had it under contract,” Cavenaugh, president of the Illinois-based Stoneleigh Cos. LLC, told the Dallas Business Journal during an exclusive hard-hat tour of the now 20-story tower.
“We knew we wanted the site for this project,” he added. “We got it going and it was a very quick decision.”
It was that parcel of land — which sits at an odd parallelogram angle on the corner of McKinney Avenue and Routh Street — that inspired the wavy exterior design of One Uptown, which has officially reached its uppermost vertical point that was solidified by a topping out ceremony Thursday.
“We didn’t want just a square box on the corner, but one with a graceful flow that goes up the building,” Cavenaugh told the DBJ. “It makes for a strong statement of the building, which the site demanded the structure to be.”
Cavenaugh and his investors closed on the land in April 2013. It took some time to rezone it for a denser use, which allowed for the 20 stories of height for the residential portion of the tower and two restaurants: Style & Grace and Fogo de Chao.
Style & Grace, which is an affiliated concept with Fat Rabbit across the street, will have an outdoor patio facing McKinney Avenue and Routh Street, with a second-floor bar area that includes a glass-bottomed pool that sits above the entrance.
Fogo de Chao will have an entrance between Style & Grace and the lobby of the residential tower.
“You will only have access to the pool through the restaurant, but I expect our residents will come to relax here after work and there will be a residents-only pool deck on the roof,” Cavenaugh said.
Each restaurant, as well as the residential tower, is expected to move into the building this fall. Originally, the development was slated for completion in July, he said, but heavy rain over the past two years during the spring delayed the project four months.
The glass facade tower’s wavy design will be further augmented by programmable LED lighting that is designed on every floor, in slightly different places, of the building, giving the illusion of movement.
Along with 26,160-square-feet of restaurant space on the ground level and second story of the building, One Uptown will include 198 market-rate apartment homes. The luxury apartments are expected to hit the market at $3 per square foot, with penthouse units on the 17th, 18th and 19th floor expected to lease for a premium.
Upon completion, One Uptown will have an amenity tower for residents, which will include a pool deck, fire pit and lounge area, and outdoor grilling station and a club room with a kitchen and wet bar. Residents will have access to a private fitness room, valet parking, and a 24-hour concierge service.
Hunt Construction Group is the project’s general contractor. Dallas-based Humphreys & Partners is the tower architect.
All in, One Uptown is expected to cost more than $75 million to construct. Cavenaugh gave the Dallas Business Journal a tour of the developing tower. Want to see its progress? Check out the attached slideshow.
Uptown tower tops out construction with opening set for later this year
The Dallas Morning News | Steve Brown | June 2, 2016
One of Uptown’s most eye-popping new towers is getting closer to a finish.
Developers have completed structural work on the 20-story One Uptown apartment high-rise at McKinney Avenue and Routh Street.
The curvaceous glass and concrete tower will include 198 luxury apartments and almost 19,000 square feet of retail space on the lower floors.
Fogo De Chão Brazilian Steakhouse and Style & Grace restaurant will anchor the retail portion of the project at 2619 McKinney Ave.
The tower designed by Dallas architects Humphreys & Partners and Phillip Shepherd opens late this year. Hunt Construction Group is the general contractor.
Stoneleigh Cos. and USA Infrastructure Investments are the developers.
The building has been under construction since October 2014 and is running a few months behind schedule.
“We had to go 65 feet down for the parking garage and it took us a year to get to the bottom through sand and rock,” said Stoneleigh CEO Rick Cavenaugh. “We also had to deal with an amazing amount of rain.
“We were originally supposed to open in June and now we will open in October.”
Cavenaugh said the developer plans to start signing leases in August.
“We should be at the top of the food chain from the apartment standpoint in this area,” he said.
The smallest 520-square-foot rental unit in the building will go for close to $1,500 a month.
One Uptown will have a second floor swimming pool with a glass bottom extending over the building’s entry porte-cochere. There will be a private fitness studio overlooking McKinney Avenue.
There’s going to be a 9,000-square-foot rooftop “Sky Lounge” with views of downtown and a second swimming pool.
The tower will have units ranging from studios to three bedrooms and there three floors of penthouse units.