Pacific Elm, KDC Land $290M for Dallas Office Project

Parkside Uptown is scheduled for delivery in 2027. Image courtesy of KDC

A joint venture between Pacific Elm Properties and KDC has secured a $290 million construction loan for Parkside Uptown, a 500,000-square-foot office development in Dallas. Goldman Sachs Alternatives provided the four-year, floating-rate note. JLL represented the borrower in the transaction.

The partners broke ground on the project last year, financing its initial construction with a $300 million construction loan from Woods Capital, according to CommercialEdge data. Plans call for a 30-story tower slated to include a sky lobby, fitness facilities, outdoor terraces and ground-floor retail. Kohn Pedersen Fox Associates, along with Corgan Architects, provided designs and completion is anticipated in 2027.

READ ALSO: Top 10 Markets for Office Deliveries in 2023

Bank of America will anchor the tower, having preleased 248,000 square feet at the property to occupy 49 percent of the space. The tenant is halving its Dallas footprint, relocating from the 500,000 square feet currently housing it at the 72-story Bank of America Plaza.

Located at 1919 Woodall Rodgers Freeway, at the intersection with North Harwood Street in the city’s Uptown, the site is adjacent to Klyde Warren Park and near the Dallas Museum of Art. The property is also next to the St. Paul at Woodall Rodgers transit station and within walking distance of Victory Station.

JLL Senior Managing Directors Jim Curtin and Michael Cosby, along with Executive Managing Director Trey Morsbach and Managing Director Greg Napper, led the team that assisted Pacific Elm Properties in securing the loan.

Dallas office development picks up

Dallas-Fort Worth’s office construction pipeline totaled 6.7 million square feet as of February, accounting for 2 percent of total stock, according to recent CommercialEdge data. The value was 40 basis points higher than the 1.6 percent national rate.

During the first two months of the year, developers broke ground on more than 616,000 square feet of office space, surpassing 2023’s construction activity from the same period.

One of the largest office projects currently underway in the metro is Wells Fargo’s campus in Irving, Texas, also developed by KDC. Scheduled to come online by the end of next year, the property will measure 850,000 square feet across two buildings.

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