Hunt Capital, Sycamore Move Forward With $125M Dallas Adaptive Reuse Project
The financing package will fund a redevelopment in one of the city’s historic districts.
Hunt Capital Partners and Sycamore Development have closed on a financing package to fund West End Lofts, a $125 million mixed-income, mixed-use redevelopment that will bring 154 units of housing to downtown Dallas.
The project will transform a large section of the historic West End district into a pedestrian-oriented hub for housing and retail while preserving part of the area’s architectural heritage.
The adaptive reuse element will include restoration of a former five-story furniture warehouse at 805 Elm St. built in 1904. It will be complemented by a new six-story building. The development will also preserve and restore a five-story building at 711 Elm St. dating to 1925 that’s widely thought to be the first parking garage constructed in Dallas.
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Of the 154 residential units, 63 will be income-restricted apartments serving households earning up to 30 percent, 60 percent, 70 percent and 80 percent of the area median income. The remaining 91 will be market-rate units. There will be a mix of 56 studios, 25 one-bedroom, 69 two-bedroom and four three-bedroom units.
Common-area amenities at West End Lofts will include a swimming pool, a courtyard, a coworking and meeting space, a rooftop lounge, a game room, a fitness center, a pet spa and bike storage. West End Lofts will also provide dedicated student learning space for school-age children, notary and tax services for residents.
The community will also have more than 20,000 square feet of ground-floor retail space. Additionally, there will be a 25,651-square-foot pedestrian plaza connecting the two mixed-use buildings.
The transit-oriented redevelopment is located south of the West End DART light rail station and north of the Dallas College El Centro campus.
Financing package detailed
Hunt Capital Partners, the tax syndication division of Hunt Cos., Inc., served as syndicator for $19.5 million in federal Low-Income Housing Tax Credits, $7.9 million in federal historic tax credits and $9.8 million in certified Texas state historic tax credits for the development.
The City of Dallas also committed $49 million to the project including approximately $28.3 million in City Center TIF District tax increment financing, as well as up to $20.7 million from other economic development funding sources such as general obligation bond proceeds.
Other funding sources include construction and TIF bridge loans from Bank OZK and permanent loan financing provided by Grandbridge. The loan amounts were not disclosed by the developers.
Earlier Dallas developments
Sycamore Development, an affordable housing developer that’s part of Sycamore Strategies LLC, and Hunt Capital Partners have previously worked together in Dallas.
In April, Hunt Capital and Sycamore completed Cabana Design District, a $116 million adaptive reuse that transformed the former Cabana Hotel at 899 North Stemmons Freeway into a 175-unit mixed-income multifamily development. Funding included $41 million in subsidies from the City of Dallas through the Design District TIF District.
The affordable housing project also preserved a piece of Dallas history. Built in 1962, the former Cabana Hotel hosted many famous visitors including The Beatles, Led Zeppelin and The Monkees.
