Rainier to Contribute M-U Development to Fort Worth’s Growing Market
- Jan 12, 2015
Rainier Realty Investments has acquired an 18-acre site at 7100 Oakmont Blvd. in Fort Worth, Texas, with plans to redevelop the space into a multi-million dollar mixed-use development.
The property currently consists of a 120,000-square-foot building, pad sites and ground leases under two medical office buildings, and was formerly occupied by Baylor All Saints Medical Center.
“This is a very well-maintained, updated hospital building and we owned the surgery center that’s in front of it, so we’ve been familiar with the asset for years,” Rob Jones, a principal in Rainier, told Commercial Property Executive. “Baylor Hospital relocated and hired CBRE to sell the site, and we see some great uses for the hospital. We’ve been approached by assisted living and data centers since we’ve been under contract.”
The redevelopment plans will include restaurant/retail frontage and other office, medical and specialty uses.
“We’re underwriting the front part to go retail and we see the building as having some great bones for something else,” Jones said. “We’ve been enjoying some good activity in the Fort Worth area for a few years and we think that will continue. We are not developers per say, and we typically like to go in as an equity partner with a developer and we have several developers we are talking with.”
The site is located in the affluent southwest suburban Fort Worth submarket, and is less than 10 miles from downtown, offering exceptional visibility and access from the adjacent Chisholm Trail Parkway.
According to Jones, the submarket is currently underserved for quality retail, restaurant and office spaces, and this site was one of the few campus opportunities in the region offering such visibility and access within a major market.
“It’s just a terrific intersection, especially with the toll way being opened,” Jones added. “If you own a great corner, your timing is always going to be good when it comes to looking for a good user. There are not a lot of tablecloth restaurants in the area, so we’ve been somewhat surprised with the response we’ve gotten involuntarily from some restaurants.”
A CBRE team led by Bob Scully, senior vice president, and Nanci Johnson-Plump, vice president, will lead the marketing efforts on behalf of Rainier.
The Fort Worth market has shows positive signs of late. For instance, CBRE’s third quarter office market report of the Fort Worth area revealed net absorption throughout the DFW office market continued to trend positively for the 17th consecutive quarter dating to third quarter of 2010. Additionally, market-wide vacancy declined in the third quarter of 2014 with an 18.2 percent vacancy rate, six months after vacancy dipped below 18 percent for the first time since 2008.