A Dallas real estate company that is redeveloping two buildings in Deep Ellum has purchased a large property near Fair Park.
August Real Estate has purchased 17 buildings with more than 400,000 square feet of commercial and residential space in the Exposition Park neighborhood near the main entrance to Fair Park.
Most of the buildings are in the area between Parry Avenue and Interstate 30. Properties are located on Parry Avenue, Exposition Avenue, Commerce Street and Pacific Avenue.
97% of the building is leased to small businesses, artists, and residential tenants.
“We are excited about this acquisition,” developer Evan August said in a statement. “The opportunity to acquire a historic and creative asset at scale, spread over enough land to establish a new urban district, is truly attractive.”
August Real Estate purchased the building from businessman David Gibson, who had been acquiring properties for the past 50 years. Gibson converted an old commercial building into a mixed-use building.
The two large office tenants in the Exposition Park building are architects GSR Andrade and Studio Outside.
The purchase includes historic buildings from the 1920s.
“We inherited a great foundation from an owner who cared deeply about his building and the neighborhood,” August said.
The new owners plan to make several improvements to the property.
“We are planning minor exterior upgrades, with potential for redevelopment or new development in the long term, but for now we are looking to improve the tenant experience,” Jordan August, a partner at the firm, said in a statement. We are focusing on that,” he said.
According to the new owners, the site is zoned for up to 19 storeys, with “potential for vertical development in the future.”
Southside Bank provided the financing for the purchase. Institutional investment advisor Adam Mengatch raised the debt. Terms of the acquisition were not disclosed.
August Real Estate has redeveloped two buildings in the Deep Ellum neighborhood. The company repurposed the landmark 1888 Continental Gin on Elm Street near Baylor University Medical Center. The company converted a historic cotton gin manufacturing plant into office and retail space.
Continental Gin is one of the oldest buildings in Deep Ellum.
The developer is also renovating the former Trunk Club building nearby at 333 First Ave. and leasing it as office space.
With the new acquisition, August Real Estate will own and operate 650,000 square feet of property east of downtown.
The sale of the Exposition Park building is the latest investment in the area between Fair Park and downtown Dallas.
Builder Larkspur Capital has developed the eight-story Willow Apartment Building with about 200 rental units on the east end of Deep Ellum.
Larkspur is working on two more rental projects nearby. Another apartment building called Juniper is slated for construction at 4003 Commerce St., just a block away near Interstate 30.
The builder is also planning an apartment project on a vacant block near the corner of Haskell and Parry streets. The rental community is located just two blocks from the Fair Park entrance and the DART commuter rail station.
Larkspur Capital officials said they welcome August Real Estate's plans for the area.
“I can't imagine a better steward of these buildings than the August family,” said Karl Anderson of Larkspur Capital. “They have proven time and time again that they can execute complex business plans for historic real estate assets.
“I don't know of any group that knows more about renovating and preserving historic buildings than the August family,” Anderson said. “Any neighborhood would jump to see them coming. Neighbors can rest assured that the historic building will be preserved for the long term.”
Developer interest in the Fair Park District is increasing as new investments are planned for this landmark park lined with Art Deco buildings. Last fall, Dallas voters approved a ballot measure that would replace the city's convention center and spend up to $300 million to renovate the Fair Park venue.
