January 28, 2005

An 'entryway' for Oak Cliff
$24M+ Project to Turn Area's Tallest Building into Condos

Christine Perez and Sandra Zaragoza / Dallas Business Journal

A neglected area of Oak Cliff may soon be transformed into a bustling retail and residential gateway.

Armed with $4.1 million in support from the city of Dallas, local developer Steve Everbach is renovating the historic Lake Cliff Tower at Colorado and Zang boulevards into 60 upscale condominiums.

It's the largest component of Oak Cliff Gateway, a $24.5 million mixed-use development that will also include a new shopping center and a bank on nearby parcels.

Built in 1928 as a luxury hotel, Lake Cliff Tower has been vacant for years. The 12-story, 85,000-square-foot building -- the tallest in Oak Cliff -- looks out on Founders Park and Lake Cliff Park, as well as downtown Dallas.

"It's rare that a developer gets an opportunity to go in and materially improve an area like this," Everbach said. "We're really changing the entire feel of the neighborhood for the better."

This is Everbach's first project on his own, but he has been down the condo/redevelopment road before.

Prior to launching Evergreen Partners last June, he was an executive with Dallas-based Lazarus Property Corp., which transformed an obsolete office building at 1505 Elm St. into about 65 upscale condominiums -- the first such project in downtown Dallas.

Everbach believes Lake Cliff Tower will enjoy similar success. More than 60% of the units have been presold, he said.

"Sales at the tower have far exceeded our expectations and exceeded the original pro forma," he said.

Dallas-based David Griffin & Co. is overseeing the condo sales.

The one- and two-bedroom units range in size from 900 square feet to 1,500 square feet, and in price from about $160,000 to more than $500,000. Amenities include high-speed Internet connections, a secured parking lot and a pool area overlooking Founders Park, complete with a large deck and fire pit. The property will be staffed around the clock by a doorman, porter, building engineer and manager.

Rogers, Ark.-based PB2 Architecture and Engineering is architect of record for the tower, as well as the retail components. Local designer Aida Latorre is handling the interiors. Dallas-based Precept Builders Inc. is serving as general contractor.

Plans call for restoration of the tower's exterior and a complete renovation of the interiors. Despite the fact that it was built more than 75 years ago, the building is structurally sound, said Dave Karcher, president of Precept.

"They don't build them like they used to," he said.

Karcher said renovation of Lake Cliff Tower is long overdue.

"There are some opinions that say substantive redevelopment of the Trinity Corridor is going to start in the northern part and move south," he said. "We're calling this Oak Cliff Gateway because we think it will really get the ball rolling."

Everbach is under contract with a regional financial institution to build a 10,000-square-foot, full-service bank at the corner of Colorado and Zang. He's also putting in a 32,000-square-foot retail center directly across the street from Lake Cliff Tower.

Its Mediterranean look will mirror the style of the condo tower, said Jill Tiernan, vice president with Dallas-based The Retail Connection, who is overseeing leasing of the retail center.

"It will be a great entryway into Oak Cliff," she said. "I think it will spur additional development."

Fitness guru Larry North will anchor the complex with a 10,000-square-foot Larry North Fitness Center. It will be his first Metroplex location south of the Trinity.

"We like to be the bigger fish in what is perceived to be a smaller pond," North said. "Oak Cliff is the most untapped area in all of North Texas for my business. With Kessler Park, the beautiful homes, the upscale apartments going in, the medical community that's there -- the due diligence on that area has already been done."

Tiernan said neighborhood service retailers, such as a salon, furniture user and restaurants, would be other ideal tenants.

The Dallas City Council approved $4.1 million in tax increment financing for Lake Cliff Tower on Jan. 12.

Everbach is finalizing a construction loan and hopes to kick off the 12-month building process in March or April. Work on the retail components is slated to begin 60 to 90 days after breaking ground on the tower.

Everbach said Oak Cliff Gateway is an ideal first project for Evergreen Partners.

"It perfectly fits with our investment philosophy, which is to go in and add significant value through construction and property improvements," he said. "In seven months, we've worked our way through a $4.1 million TIF, numerous neighborhood meetings, extensive involvement with the city planning commission and economic development groups and rezoned the property.

"We couldn't have done this without the city's participation and support," Everbach said. "It should add significant value to the tax rolls."

Original article appears in the Dallas Business Journal.