New developer signs on for 1401 Elm Street redevelopment

May 7, 2019
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Todd Interests is the latest developer to sign on for the redevelopment of a long-vacant tower in downtown Dallas. That's according to a report from the Dallas Morning News.

Dallas-based Todd Interests, alongside Moriah Real Estate, plans to continue the resuscitation of the 52-story First National Bank tower at 1401 Elm Street with plans to complete the project by the end of 2020.

The developer is taking over the project — once dubbed "The Drever" — from Drever Capital Management, which purchased the property out of bankruptcy several years ago. Drever will continue on as an economic, non-managing minority limited partner, according to the Morning News, working in an advisory capacity.

Redevelopment costs for the 1.5-million-square-foot project, which has involved a massive abatement and is one of the biggest adaptive reuse projects in Dallas, have ballooned to $450 million. Initially, with Drever at the helm, the cost was estimated at about $380 million.

Plans call for a mixed-use development that features apartments, a Thompson Hotels property, retail and office space.

The revival of the glass-and-marble skyscraper has been a long road.

Two years ago, Drever expected to have the project completed by the fall of 2018, but financial tumult delayed the work. BRDC Partners, a co-developer in the project, dropped out, and some subcontractors put liens on the property that were later removed. Drever then landed a $67 million bridge loan in November 2017 — dodging foreclosure at the time — and announced that it planned to deliver the project in 2019.

"Maxwell Drever and his team gave it all they had and should be applauded for their efforts and for keeping the property of out foreclosure," Shawn Todd told the Morning News.

Todd and Moriah must finish the project on a tight timeline in order to secure $95 million in federal and state historic tax credits and $50 million tax incremental financing, the Morning News reported.

Andres Construction is the general contractor for the redevelopment. Merriman Anderson/Architects is the project architect, and Architectural Arts Company is the arts consultancy on the the project.