Millions of dollars worth of construction costs on US 75 and I-635 construction cards.
Dallas — read This article and other North Texas business news From our partners at Dallas Business Journal
When Costco Wholesale agreed last year to buy a 10-story office tower on Route 75 next to its Dallas store, at least one retail broker said the company would not demolish it. I thought so, but so far that hasn't happened. It seems so.
In its place, Issaquah, Wash.-based Costco and Seattle design firm MG2 Architecture Corporation will renovate a 198,000-square-foot office building and 590-space parking garage at 12655 N. Central Freeway. The company reportedly submitted a $12.9 million plan to do so. Four applications filed with the Texas Department of Licensing and Regulation.
Those applications request $7.73 million for tenant renovations of 34,442 square feet in the office tower. $3.6 million in maintenance, upgrades and repairs throughout the facility. $1.5 million for garage maintenance and security upgrades; and $80,000 for pedestrian streets.
The purchase was completed on March 28, according to deeds filed with Dallas County. Built in 1982, the building sits on nearly four acres adjacent to a Costco store on Churchill Way near the intersection of Route 75 and Interstate 635, one of 13 stores in the Dallas-Fort Worth area. This is one of the Costco stores.
Representatives for Costco and its design company did not respond to requests for comment. It remains unclear whether Costco will locate its own offices in this building or whether there are other long-term plans for the site. Information in TDLR filings is often preliminary and subject to change, but provides an early indication of construction plans.
Nationally, Costco is building a former Hertz office building in Oklahoma City for its new operations center, as well as a smaller office in Springfield, Va., adjacent to the planned expansion store, according to reports in The Oklahoman and Coster News. The company reportedly purchased similar properties, including buildings. .
Houston-based Hartman SPE LLC, the former owner of the Dallas office building, filed for Chapter 11 bankruptcy protection in September after its parent company, Silver Star Properties REIT, Inc. invested in The company has been selling office and commercial properties as its focus shifts to Self storage.
Costco (Nasdaq: COST) made the highest offer of $14.25 million and closed on the deal in November, according to federal court documents. Another bidder placed a bid just under $12.1 million, according to court documents. Costco's offer was slightly higher than the $14.1 million market value published by the Dallas Central Appraisal District.
As of late last year, when Costco signed the deal, the office building was about 72% leased, with the largest tenants being Zion Oil & Gas, Move-It Storage and Cadence Bank, according to Coster Group data. was.
