Dallas-based private equity and development firm Four Rivers Capital landed a $108.4 million construction loan for Weir’s Plaza in the Knox District of Dallas. The project taking shape at 3129 Knox St. will be a 12-story, Class A mixed-use tower. The developer broke ground earlier this month, with completion slated for November 2021. JLL’s Capital Markets team led by Vice President Clint Coe and Managing Director Tim Jordan secured the financing, provided by PCCP.
“Demand from capital to invest in quality office product continues to be driven by the market’s tightening vacancy rates and continued job growth, especially within this submarket,” Coe told Commercial Property Executive.
Weir’s Plaza will feature 250,000 square feet of office space and 40,000 square feet of ground-floor retail on a 1.2-acre site. The property will include amenities such as a tenant lounge, fitness center, six levels of underground parking and terraces throughout the building.
The development is already 65 percent preleased, with law firm Kirkland & Ellis as the anchor tenant taking nearly 66,000 square feet throughout the top three floors. Coworking giant WeWork has also signed on for more than 71,000 square feet across three floors. And Weir’s Furniture, a local furniture chain and the namesake for the new development that’s being built atop its former location, has already committed to a 28,000-square-foot lease for a portion of the first and second floors.
More growth for the Dallas office market
In JLL’s office insight report for Dallas’ first quarter of 2019, robust demand for office space was attributed to strong job growth in the office-using sector. The report noted that the Dallas office market saw a year-to-date absorption rate of 1.1 million square feet and that the sector would see steady growth for the rest of 2019, with a possibly slowing mid- to late-2020.
As a testament to healthy leasing activity in the metro, RED Development signed three leases at its The Union building, while Taconic Capital Advisors scored a tenant taking 372,000 square feet of office space at International Plaza I.