Knox Street high-rise project gets underway as Dallas’ most expensive development

A Wednesday afternoon ceremony formally launched construction on Dallas’ most expensive real estate project – a 4-acre residential, office, retail and hotel development on the eastern edge of Highland Park.

The 1 million-square-foot high-rise mixed-use development on Dallas’ Knox Street will open in 2026. The three-tower complex is a project of Trammell Crow Co., MSD Partners, The Retail Connection and Highland Park Village Associates.

Excavations have begun for the Knox Street project at a time when many commercial real estate developments have been delayed or canceled.

“The capital markets are bad but this real estate is better,” said Scott Krikorian, senior managing director and principal of Trammell Crow Co. “There are very few places in the world that can support the start of a project like this. This is world-class real estate.”

Krikorian said it’s Crow Co.’s largest development in the region. More than 200 people turned out for the groundbreaking.

Work has started on the four-acre Knox Street high-rise development just east of Highland Park.(Contributed / Trammell Crow Co.)

The development at Travis and Knox streets will include a tower with a 140-room Auberge Resorts Collection hotel and 48 high-end condominiums.

A 150,000-square-foot office building will occupy the north end of the property fronting on Knox. Dallas-based ISN Software Corp. has leased the top four floors of the office building. More than 100,000 square feet of lower-floor retail and restaurant space will be located on the block.

A 27-story, 173-unit apartment building will be constructed at the south end of the site. All of the new buildings will surround a half-acre park along the east side of the Katy Trail.

Crow Co. and MSD Capital have been planning the development since 2017, said Joel Behrens, Trammell Crow Co. managing director.

MSD Capital bought about 12.5 acres in the Knox district, including buildings on Cole and McKinney avenues and Travis Street. Austin billionaire Michael Dell, founder of his namesake technology firm, formed MSD Capital in 1998.

“We started pursuing this with MSD and the Retail Connection six years ago,” Behrens said. “We are fortunate to have the opportunity to work on a project of this scale and prominence in the city.”

Construction crews will spend the next year digging out the block for an underground parking garage and building 700,000 square feet of below-surface construction, Behrens said.

“Once we come out of the ground, Knox Street is going to be home to Dallas’ finest hotel and residences,” he said. “The luxury multifamily will be the preeminent rental building in the city.”

Behrens said it’s hard to do a project like this, “let alone through COVID and a massive run-up in interest rates.”

The development includes a small park on the Katy Trail.(Trammell Crow Co. )

Plano-based Beal Bank has provided more than $619 million in financing for the Dallas development.

“It should come as no surprise that during this fanatically turbulent time, it was Beal Bank, a Texas-based bank, that fully underwrote this loan,” Behrens said.

Sabrina Gleizer, managing director of MSD Partners, described the Knox Street development as a “flagship opportunity.” New York-based MSD Partners is a firm that invests on behalf of Dell’s family and other third-party investors.

“We invest in generational real estate in unbelievable locations,” Gleizer said.

She promised to “keep this project local. Keep this project authentic. Keep this project true to Dallas.”

Allie Beth Allman & Associates is the listing agent for the condominium residences, which are already being snapped up by buyers.

“We’ve already sold pretty much all the condos,” said Ray Washburne, managing director of Highland Park Village Associates, which is handling retail leasing for the development.

CBRE Group is leasing the office building.

The New York office of Australia-based Woods Bagot, New York-based Kohn Pedersen Fox and Dallas’ HKS are designing the development. OJB Landscape Architecture will also work on the Knox project.

Balfour Beatty and Andres Construction are the general contractors.

“They teamed up to work on this development,” Behrens said.

The Knox Residences will overlook the Park Cities and Uptown Dallas.(Trammell Crow Co. )

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