TriGate and Pacific Elm Properties Form Partnership to Recapitalize and Redevelop Comerica Bank Tower
Partnership Will Add Luxury Apartments and Hotel to the Iconic Downtown Tower
DALLAS, TEXAS, January 4, 2023 - TriGate Property Partners II, LP (“TPP II”) recently completed a recapitalization of the ownership of Comerica Bank Tower. Pacific Elm Properties (“PacElm”), a Woods Capital company, is partnering with TPP II to redevelop the property, which spans 60 floors totaling 1.5 million sf located in downtown Dallas, Texas. Comerica Bank Tower was designed by Philip Johnson and John Burgee and is one of the most iconic buildings in Dallas.
“We are excited to be partnering with an experienced and well capitalized partner to redevelop the class AA office building into a mixed-use property,” said Jason Obenhaus, Managing Director at TriGate Capital. “The quality of the building together with the Main Street location provides for a very unique development opportunity.”
According to Paul Sharp, Senior Vice President at TriGate Capital, “the opportunity to add luxury residential and hotel uses in conjunction with best-in-class amenity upgrades to Comerica Bank Tower will enhance the experience of office users, which will continue to comprise the majority of the building.”
Working with TriGate Capital is allowing PacElm to expand its footprint in downtown Dallas, where it owns and manages over 6 million square feet in six existing towers. PacElm is already underway converting approximately 400,000 square feet from office into 291 luxury apartments at Santandar Tower and will soon commence construction converting over 500,000 square feet from office to approximately 400 luxury apartments in Bryan Tower.
“By converting static office vacancy into luxury residential or hotel, we are able to add amenities and improve the quality and vibrancy within not only our properties but the entire neighborhood, which we believe will have a meaningful and lasting impact on office fundamentals in downtown Dallas.” Said Jonas Woods, CEO of Pacific Elm Properties.
According to CoStar, the downtown Dallas office supply totals 33.8 million sf with an occupancy rate of 72%, and the downtown residential supply totals 9,367 units with a 90% occupancy rate. The announced conversion projects in downtown will increase the office occupancy rate to over 80% in Comerica’s competitive set, the highest in over three decades.
About TriGate Capital
TriGate Capital, LLC (TriGate) is a leading real estate investment manager focused on the recapitalization and repositioning of real estate assets and companies. TriGate is based in Dallas, TX and has completed investments throughout the United States. TriGate’s team has been responsible for acquiring over $2.6 billion of real estate assets through multiple types of transaction structures. The Company’s professionals have significant expertise in real estate operations, debt restructuring, and asset and company recapitalization.
TriGate manages four fully discretionary real estate funds, TriGate Property Partners, LP (Fully Realized), TriGate Property Partners II, LP (Fund II), TriGate Property Partners III, L.P. (Fund III), and TriGate Property Partners IV, LP (Fund IV) which are the vehicles through which TriGate conducts its investment strategy. Fund II and Fund III are fully invested, and Fund IV is presently in its investment period.
About Pacific Elm Properties
Pacific Elm Properties owns, manages, invests in, and develops dynamic, mixed-use properties in Dallas, Texas. With an uncompromising commitment to placemaking, Pacific Elm elevates existing and creates new upscale urban neighborhoods, including The Field Street District in Downtown Dallas and Ivy Park in the Knox District. Pacific Elm Properties was formed and is managed by Woods Capital, which was founded by Jonas Woods in 2007. The Pacific Elm team has been an active participant in the real estate market as an investor, developer, and manager of real estate assets for over 30 years and has completed over $6 billion in real estate acquisition and/or development transactions including office, residential, industrial, retail and mixed-use properties. Pacific Elm’s portfolio is currently comprised of six Class A towers totaling 6.2 million square feet and nine acres of developable land located in Uptown and Downtown Dallas. Pacific Elm’s mixed-use development pipeline exceeds 5.1 million square feet including 1.2 million square feet of active development.