Tim Downey has been on the hunt for a development site in downtown Fort Worth for more than 15 years.
The founder and CEO of Southern Land Company checked every month, he said, but landholders downtown weren’t keen on selling.
Fortunately, Downey’s patience and persistence paid off.
A decade into his search, XTO Energy offloaded a parking lot between 8th and 9th streets. On Tuesday, Downey celebrated the opening of Fort Worth’s first downtown high-rise multifamily tower.
Deco 969 rises 27 floors on Commerce Street, just a few blocks south of Sundance Square.
Mayor Mattie Parker, Commissioner Ray Brooks and City Councilwoman Elizabeth Beck came to fete Deco 939 in the building’s 24th floor lounge, which features 270-degree views of downtown, a pool deck and one of the building’s three bars.
Parker called the opening “the beginning of fulfilling a strategic vision” for downtown Fort Worth.
“We understand the risk it takes in business to choose a new city, a new market to be in,” she said.
Not only did Southern Land Company branch out into an unfamiliar city, but it also brought a new product to a new market.
With its doorman and concierge, Deco 969 provides a level of rental luxury previously unseen in Fort Worth. By early next year, it will also be home to Oklahoma-based steakhouse Broadway 10 Bar & Chophouse.
Deco 969 cost about $200 million to build, Downey said — with 302 apartments, that’s $662,000 per unit. The firm got a $73.5 million loan from Bank OZK, according to mortgage documents.
The novelty of the project made getting a loan difficult, since there aren’t comparable properties in downtown Fort Worth, he said. That meant the firm ended up having to kick in more equity than usual.
Rents have to be high enough to make the investment worth its price tag. Apartments in the building are going for $3.25 per square foot, putting rents between about $2,300 for a one-bedroom and nearly $14,000 for penthouse and other large units.
“I’m not concerned about people wanting to live in this building,” Downey said. “It’s more about the rate. Can we get the rental rate we want?”
So far, Deco 969 is about 16 percent leased. The team is aiming to lock in about 18 additional leases per month.
It’s a risk, no doubt. But Downey is “100 percent sure it will work out fine.”
“Everybody’s watching this building,” Downey said. “Every real estate developer in Dallas-Fort Worth is waiting to see how we do. And if we do well, they’re gonna run down here and build more.”
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