Dallas Morning News

Columnist Steve Brown

Steve Brown writes about real estate for The Dallas Morning News.

Harvard Companies Busy

Harvard Realty Corp. is staking its claim in one of Dallas' fastest-growing real estate markets – the central business district. The real estate firm just brokered the sale of the two-building Fidelity Union Life complex on Bryan Street.  "And I'm working on a number of other deals downtown, including a strip retail center," said company principal Randall Turner. "I'm working on almost 31 transactions." Mr. Turner kicked off his new operation with TXU Energy's deal last week to sell the Fidelity Union buildings to developer Hamilton Properties. The new owner plans to convert the vacant office high-rises into a $92 million residential community. Mr. Turner said the apartment project on Thanks-Giving Square is at "ground zero for the center city." E-mail stevebrown@dallasnews.com

Dallas Morning News

Monday, April 12, 2004

Randall Turner, Commercial Real Estate Broker/Developer and founder of the new downtown Dallas commercial real estate brokerage establishment, Harvard Realty Corporation (a division of Harvard Companies, Inc.) has just announced his most recent downtown transaction between TXU Energy and Hamilton Properties.  The complex involves 1,108,780 square feet of office buildings incorporating two contiguous skyscrapers and an adjoining garage at the intersection of Bryan and Pacific. 

The first of the two buildings, the 21 story Fidelity Union Life Building opened in 1949. In 1959, following the company’s rapid growth, the 31 story Fidelity Union Tower was constructed.  Before being finally “moth balled”, the property served as TXU’s offices.

The complex is located adjacent to the downtown Dart Station, the Skybridge, and the Tunnel systems.  It boasts an 830 car attached garage combined with the city’s only ½ acre underground commercial delivery truck court.

The developers are planning to spend approximately $92,000,000 to transform the property into the largest apartment, condominium, and retail complex in the history of downtown Dallas.  The City Center TIF Board of Directors unanimously approved two weeks ago $9,000,000 in contributory funds to assist the successful completion of the development.  This unique Ted and Larry Hamilton design includes over 500 living units, 23,192 square feet of retail and restaurant space, 62 private garage units, and 830 parking spaces.

Harvard Capital Corporation (another division of Harvard Companies, Inc.) will invest and retain a partnership interest and consulting role in this historic undertaking.  Randall is working with the Hamilton’s and other prominent downtown developers on several other firsts in downtown Dallas. Included is the first quality strip mall, similar to Highland Park Village, to be developed downtown close to the Arts District and the Dallas City Center.  Also a new concept, an Urban Department Store, is also being planned that will support the many multi-family projects that are being redeveloped.  He is also working on a high-end garden style loft development that will attract and accommodate the most discriminating professionals who choose to live and dine downtown.

Randall, with over 22 years of active commercial real estate experience in the Dallas area, is a former Senior Vice President of NAI Stoneleigh Huff Brous McDowell.  He is quick to admit that he is the unabashed champion of downtown Dallas.  “I have a vision and a highly focused action plan that is designed to change forever the way that people perceive and utilize downtown.  Together with other downtown developers, property owners, business leaders, Mayor Laura Miller, the Dallas City Council, investors, and others I am confident that we are going to shift the current downtown Dallas mindset in favor of a vibrant and exciting multi-use commonwealth.”

“Much like what occurred in Uptown Dallas some ten years ago, I believe, and current activity is bearing me out, that if you build it, they will come.  If you develop affordable, attractive, and historic housing downtown and develop the retail, restaurant and grocery infrastructure to serve the area’s new residents, people will choose to live downtown, whether or not they work there.  In fact, studies show that among the very satisfied loft and apartment owners who now live downtown, many of whom are working elsewhere, reverse commuting has been found to be a valuable bonus.”

“I am very enthusiastic about the future of downtown Dallas and am currently involved in a number of exciting development opportunities.  Over 125,000 people are known to be employed downtown but only about 1,800 persons live there.  The demand for downtown housing is strong with the existing residential buildings 95% to 100% leased.  We need more product downtown and we need it now.  Downtown is my passion and it is the avenue I intend to pursue.”

Downtown affinity sparks Harvard buy

Just weeks after brokering the sale of the Fidelity Union Life Insurance complex, a 775,000-square-foot project now undergoing a $92 million loft conversion, real estate investor Randall Turner is pursuing a similar venture on his own behalf, albeit on a smaller scale.

Turner, president of Harvard Realty Corp., is part of an investment group buying two vacant buildings along Elm Street to convert into residential and restaurant space. Plans call for cutting through the brick that divides the adjacent facilities at 1600 and 1604 Elm Street to create a single 20,000-square-foot property. The end result will be a tiered two- and three-story development.

The deal went under contract last week and is expected to close within 90 days. Charles Erwin & Partners is the seller. Turner puts acquisition and redevelopment costs at $4.5 million.

1600/1604 Elm is the last undeveloped space in Stone Street Gardens, a restaurant and retail complex that connects Elm and Main streets between Akard and Ervay streets. Turner said he is close to inking deals with two restaurants to occupy the first level of the project. The second and third floors will be converted to lofts.

Formerly with NAI/Stoneleigh Huff Brous McDowell, Turner launched Harvard Realty last month to concentrate solely on downtown real estate deals. His interest in the CBD was reignited last year when he helped Cowles & Thompson ink an $18 million lease at Bank of America Plaza.

"I've always loved downtown Dallas, ever since moving here 23 years ago," he said. "I realized there wasn't a real estate firm focusing exclusively on the central business district and saw an opportunity. Meanwhile, investor interest in downtown buildings was reaching a boiling point. The timing for going out on my own was perfect."

Turner moved his firm into 4,000 square feet at 1301 Main St. last week. He hopes to have a team of 10 brokers and five support staff on board by the end of the year. James Reed, a former NAI/Stoneleigh colleague, has already joined as director of development.

So far, the company has picked up nine property listings and has 29 other projects in various stages of development. Turner also is raising money for improvements to Thanks-Giving Square.

"There are some things going on and money being spent that will change the face of downtown Dallas forever, and it's all going to happen within the next several years," he said.

Turner said projects under way will more than double the existing inventory of downtown residential space, from the current 1,800 units to close to 4,000 units.

The urban core is "nowhere near to achieving capacity," according to Greg Willett, director at Dallas-based M/PF Research Inc. "There is an aggressive growth pace downtown, but the market is better positioned than any other in the Metroplex to handle it," he said.

Turner named his company Harvard Realty in honor of his great uncle, Wallace B. Donham, who helped launch Harvard Business School and was its second dean, and his great-grandfather, G. Clifford Noble, a Harvard grad who co-founded the Barnes & Noble bookstore chain.