February 23, 2007

Best Real Estate Deals 2006 -
Best Multifamily Development - WINNER

LAKESIDE LIVING: The $17 million renovation of the former Lake Cliff Tower Hotel
has created 56 new condominium homes overlooking Lake Cliff in Oak Park.

Christine Perez / Staff Writer

One of the hottest new residential addresses in North Texas is in Oak Cliff. Evergreen Realty Advisors’ renovation of the historic Lake Cliff Tower Hotel on Colorado Boulevard has created 56 condominium homes, with stunning views of the Trinity River, Lake Cliff and downtown Dallas.

Precept Builders, led by Doug Deason, got involved with the project in 2003 as a general contractor. The company had priced a renovation of the former hotel for three different developers. When those efforts all fell through, Deason brought in Evergreen, in which he is a partner, to try to make something happen.

"Our team had put so much work into it," Deason said.

Steve Everbach, partner in Evergreen, agreed to take a look.

"When I came up the hill on Zang Boulevard and saw the lake and the building, my jaw dropped," he said. "I have been in Dallas for 20 years, yet I was completely naive about the neighborhood. It feels just like you're in Central Park."

The hotel property had sat vacant for more than five years and was in sad condition. But underneath the clutter and dust was an architectural gem. Deason and Everbach decided it was worth preserving, and that they could tap into the growing market for urban residences. Two years and $17 million later - plus another $4 million in tax increment financing support - Lake Cliff Tower Condominiums is now open to residents.

Redeveloping the 75-year-old building wasn't easy, Deason says.

"We should have nicknamed this ‘blood, sweat and tears,"' he says. "It has been very challenging to redevelop the property. You try to anticipate everything, but there were so many surprises."

Situated next to Founders Park and across the street from Lake Cliff Park, the property has plenty of natural amenities. Other perks include high-speed Internet access, swimming pool, fire pit and outdoor lounge area, theater room, lounge and game room and wine cellar.

"The vision was to create an urban oasis, and I think we've definitely achieved that," Everbach says.

The one- and two-bedroom units range in size from 900 square feet to 2,000 square feet, and in price from $200,000 to $600,000. Abio & Associates is marketing the property. Top-floor units include a large rooftop deck, accessed by a spiral staircase.

About 80% of the condos are reserved; 60% were pre-sold. Deason and Everbach have raised prices four times since beginning the renovation process. The project is attracting young professionals and young couples, as well as middle-aged couples and empty-nesters.

Cassie Gibson with Residential Strategies Inc. says Lake Cliff Tower should continue to do well.

"It's a renovation of a historic building that offers views of downtown that can't be matched," she says. "Pricing is about $225 per square foot, which is a fairly affordable price point. Most of the townhomes being built in Uptown right now over by West Village are priced in the $250-per-square-foot range. Obviously you get more condo for less money south of downtown, to compensate for the fact that it's area that hasn't traditionally seen much buyer traffic."

Everbach says that situation is about to change, with a number of other developers kicking off new projects nearby.

"In Oak Cliff, you have a city government that wants things to happen and is willing to work with developers in a very favorable way," he says. "You also have great fundamentals - great location, the beauty of the area and an abundance available land. We think the value of this property and this area is going to do nothing but going up."