RICHARDSON, TEXAS — Dallas-based KDC, a commercial real estate development and investment firm, plans to acquire 186 acres of land in Richardson to develop a $1.5 billion master-planned project. The mixed-use development, which will include office, healthcare, retail and multifamily components, will be located near the intersection of President George Bush Turnpike and Interstate 75 (North Central Expressway). Financing is in place for the development, but details aren’t available at this time.
The Richardson City Council approved rezoning for the tract, which has paved the way for the project’s development. The project will be adjacent to the Dallas Area Rapid Transit (DART) Bush Turnpike Station on its red line. KDC anticipates closing on the land acquisition before the end of the year.
“We started out with a vision of what this property could be and worked alongside the City of Richardson to make it happen,” says Steve Van Amburgh, CEO of KDC. “The development will have a great mix of amenities in a pedestrian friendly environment that is inviting to corporate users and the community.”
“The site is one of the finest undeveloped properties in the Dallas/Fort Worth Metroplex, and perhaps in any major U.S. metropolitan area,” adds Walt Mountford, executive vice president of KDC. “It is uniquely surrounded by the vehicular and light-rail infrastructure that corporate clients seek and their employees demand.”
State Farm Insurance will be an anchor office tenant in one of the project’s build-to-suit office buildings, according to several media outlets. Patti Kelly, a spokeswoman for the insurance firm, says that State Farm signed on to the development because it is seeking a lengthy lease term in the Dallas area.
“State Farm signed short-term leases in Dallas this year. By entering into this lease, we are looking more long-term as we work to serve multiple customer needs in Texas and across our company,” says Kelly, who also says that new and existing employees will staff the development.
Aerial image of the 186-acre tract of land in Richardson where KDC will develop the $1.5 billion mixed-use development.
The project’s conceptual design is under way, and the project will include office buildings, an integrated healthcare facility, 3,925 residential units, hotels, shops and restaurants. No timetable was made available for the project's completion.
KDC has developed three other projects in Richardson in the past 12 years: the 800,000-square-foot Nortel Networks Galatyn Park Campus in 2001, which Bank of America and State Farm currently occupy; the 1.1 million-square-foot Blue Cross Blue Shield campus in 2009; and the 535,000-square-foot Fossil campus in 2011.
“KDC has been a tremendous development partner in Richardson, and we are excited about this rezoning, which lays the groundwork for a major development at this very important crossroads to serve the entire North Texas region,” says Richardson Mayor Bob Townsend.
The development is part of the City of Richardson’s Tax Increment Financing Zone 2, which is outlined in the Bush/75 Urban Center Development Infrastructure Support Strategy. The city council approved the final plan for the zone, as well as approved zoning changes.
“KDC and the City of Richardson have had a long and successful track record, and we are extremely pleased to again be teaming with them on the largest project in our company’s history,” adds Toby Grove, president of KDC.
In addition to its Dallas headquarters, KDC has regional offices in Austin, Charlotte, N.C., and Detroit. The firm completed $1.5 billion in office and industrial projects across the country in the past five years. KDC is currently developing more than 3 million square feet of space, not counting the Richardson development.
— John Nelson