Provident Tackles Another Dallas Redevelopment

Only a few months after unveiling plans for a $300–$400 million mixed-used project in the prestigious Preston Hollow area not far from Downtown Dallas, Provident Realty Advisors is at it again, albeit with a somewhat more moderately sized redevelopment project. The company has announced that following a successful rezoning effort, it has closed on the acquisiton of a 25-acre site on the north side of the LBJ Freeway (I-635) in the northwestern Dallas suburb of Farmers Branch. The site is currently occupied by six, three-story office buildings totalling nearly 400,000 square feet. Provident’s plans for the as-yet-unnamed project are still tentative at this stage. A prepared statement said that the company is “evaluating its redevelopment options for the site.” Possibilities include renovation of the existing office buildings or their demolition. The reason for this uncertainty, a Provident spokesperson told CPN today, is that the LBJ Freeway is being widened. The stretch of freeway along one side of the site won’t be widened until 2009, and the Texas Dept. of Transportation has not yet released final plans. The zoning change, according to the spokesperson, permits a total of 1.2 million square feet on the site and an increase in density to five stories along the southern side, facing the freeway. Current plans call for 130,000 square feet of anchor retail, 7,800 square feet of smaller retail, 14,5000 square feet of restaurants, and between one and three limited-service hotels. Completion of the project is scheduled for mid-2009. “We are now talking with major retail anchors that want to be a part of this high-traffic location,” Leon Backes, Provident’s president & founder, said in the statement. Provident bought the property from Archon Group, which had been managing it for an undisclosed owner. The purchase price was not disclosed. Scott Farber of Grubb & Ellis Co. represented the seller, while Provident Realty represented itself. The 42-acre Glen at Preston Hollow project, meanwhile, is on schedule, the spokesperson told CPN, with “extensive demolition” and other site work under way. The project is slated to include 175,000 square feet of retail and restaurants, 100,000 square feet of Class A office and up to 1,100 multi-family units, as well as 104 luxury single-family homes in a 17-acre gated community at western end of the property. Provident’s partner in that project is the Red Sea Group. Provident Realty Advisors has developed or invested in assets worth more than $1 billion, including other large multi-use projects.