Pacific Elm & KDC Secure $290M Loan for Dallas Office Project

A joint venture between Pacific Elm Properties and KDC has successfully secured a $290 million construction loan for Parkside Uptown, a significant office development spanning 500,000 square feet in Dallas. The loan, provided by Goldman Sachs Alternatives, is a four-year floating-rate note. JLL acted as the representative for the borrower in this transaction.

Development Progress and Design Features

Groundbreaking for the project took place the previous year, initially financed by a $300 million construction loan from Woods Capital, according to CommercialEdge data. The plans for Parkside Uptown include a 30-story tower featuring amenities such as a sky lobby, fitness facilities, outdoor terraces, and ground-floor retail spaces. The architectural designs were provided by Kohn Pedersen Fox Associates and Corgan Architects. Completion of the project is expected in 2027. Bank of America has committed to anchor the tower, preleasing 248,000 square feet of space, which equates to 49 percent of the total area. This move marks a significant downsizing for Bank of America, which currently occupies 500,000 square feet at the 72-story Bank of America Plaza.

Prime Location and Connectivity

Parkside Uptown is strategically located at 1919 Woodall Rodgers Freeway, intersecting with North Harwood Street, within the Uptown district of Dallas. Situated adjacent to Klyde Warren Park and in close proximity to the Dallas Museum of Art, the property boasts excellent connectivity, being adjacent to the St. Paul at Woodall Rodgers transit station and within walking distance of Victory Station.

Assistance in Securing Funding

JLL's Senior Managing Directors Jim Curtin and Michael Cosby, along with Executive Managing Director Trey Morsbach and Managing Director Greg Napper, played a pivotal role in facilitating the loan process for Pacific Elm Properties.

Dallas Office Development Trends

Dallas-Fort Worth's office construction pipeline has been burgeoning, with a total of 6.7 million square feet as of February, constituting 2 percent of the total stock, based on recent CommercialEdge data. This figure surpasses the national rate by 40 basis points. The region has witnessed significant construction activity in the first two months of the year, exceeding the levels recorded in the same period of 2023.

Notable Projects in the Metro

One of the notable office developments in the metro area is Wells Fargo's campus in Irving, Texas, developed by KDC. Scheduled for completion by the end of the following year, the campus will encompass 850,000 square feet spread across two buildings.