Atlanta — Redevelopment plans for two of North Texas’ largest shopping centers include the demolition of several acres of excess retail space.
Fort Worth-based Trademark Property Co. is working on plans to repurpose two retail centers in Dallas and Fort Worth: the Galleria Dallas and the Lincoln Square Mall in Arlington.
Trademark CEO Terry Montesi said the majority of existing retail space at both properties will be cleared for new mixed-use construction.
trademark I have been working since 2018 With Galleria owner UBS Asset Management and investor MetLife on the new design of the 1.4 million square foot shopping mall on the Dallas North Tollway and LBJ Freeway.
“We’ve been working on a redevelopment plan,” Montesi said at a meeting of the National Association of Real Estate Editors. “Boutique hotels are being added and the south 20% of the mall is being demolished.
“We will demolish 20% of the mall and add apartment complexes, office towers, boutique hotels and public spaces,” he said. “That’s what people want now — mixed use.”
There are approximately 250 units in the 20-story tower condominium.
The design also includes a 20-story, 500,000-square-foot office building.
The 16-story hotel has about 180 rooms.
Opened in 1982, the Galleria has three floors of shops and was once home to four department stores. Shopping spaces surround the 432-room Westin Galleria Hotel, which remains in the redevelopment.
Montesi said his company has transformed 18 retail projects across the country, and said the apartment addition is part of a redevelopment plan for every deal he’s working on.
“There is too much retail in this country,” he said. “Many centers are too big. It’s multifamily housing that has the accumulated value in this market.”
Montesi said his company is doing well complete the purchase next week The approximately 500,000-square-foot Lincoln Square shopping center on Interstate 30 in Arlington. Built in 1983, the 45-acre retail center is less than half occupied and is said to be functionally outdated.
The City of Arlington is offering the trademark incentives to support the development, which is expected to cost between $250 million and $300 million.
“We’re probably going to get rid of 200,000,000 square feet of retail,” Montesi said. “Perhaps two or he plans to add three multifamily projects.
“We currently have two grocery stores and a large discount operator interested,” he said. “The multifamily market is there today.”
Montesi said he expects larger shopping centers across the country to opt for large-scale redevelopment.
But many real estate properties are already heavily indebted. “If you have too much leverage, you cannot attract capital,” he said.
Also, some communities are unwilling to rezoning their retail facilities for new uses.
“The idea of not having rental apartments in my backyard is somewhat prevalent,” Montesi said. “But urban comfort apartments in a mixed-use project is a big difference.”