Crescent Fires Up $125M Residential Project

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By Connie Gore

DALLAS-With the Ritz-Carlton flag flying over the Uptown development, Crescent Real Estate Equities Co. will break ground in early 2007 on a $125-million second phase with 96 condos in a 23-story tower and four Regency Row homes alongside. And when that's nearly sold out, there's a three-acre block for a third residential phase.

"It is possible," Ken Moczulski, managing director of investments for the Fort Worth-based Crescent, tells GlobeSt.com about the widely rumored third phase. "We're going to wait and see how sales go for phase two."

The second phase, being assigned Pearl Street addresses, will go up on 5.5 acres beside the Ritz-Carlton Hotel, a 217-room project being topped off with 70 condos that will be delivering in third quarter 2007. The first phase of residential space, averaging 2,900 sf per condo, in the Crescent-dominated Uptown core has 63 units sold and letters of intent in hand for three more, according to Moczulski.

Moczulski says the same sales team will be handling phase two, marketing units from $700,000 to $8 million. Condos, ranging from $500 per sf to $1,000 per sf, will average 2,100 sf in one-, two- and three-bedroom designs. Touted as Upper East End product, the Regency Row houses will average 7,000 sf and be tagged for sale at $6 million to $8 million. "We've got people on the list for Regency Row already," he says. "They will be little jewel boxes and they will be priced like a jewel box."

Moczulski says the schedule calls for a June 24 launch of the "Ritz-Carlton Village" website and accepting letters of intent after Labor Day. He says firm contracts will be in hand by Nov. 1 so ground can break shortly after the new year begins. The expectation is second phase presales will follow that of the first, with construction launching at the 40% sold mark. Likewise, a third phase could be ramped up if the second round matches the first--75% sold within six months, he says.

Crescent's residential units have broken all records in the region. "It's a combination of location, architecture, the Ritz-Carlton lifestyle and Crescent, the largest owner in Dallas and Houston, is really standing behind this project," Moczulski says. "That's why we've been able to exceed all the pricing levels historically in Dallas." The reality is the condos in the second phase will average $750 per sf.

Moczulski says Oct. 15 to Nov. 1 has been targeted to firm up construction pricing, secure financing and line up the general contractor. The Cleveland-based KeyBank financed the first phase and will be at the head of line for phase two financing, he says.

The tower and row homes, carrying a fall 2008 completion, were designed by renowned architect Robert A.M. Stern with interiors by Sherry Hayslip of Dallas. A second-floor skywalk will link the tower to the hotel, with all residents having full access to the built-in amenity base. The interior of the second phase's tract will have a resort-style swimming pool, English Gardens and dog-walking garden.

"It is exciting to now have phase II available to potential homeowners, adding value and convenience to the perfectly located Residences neighborhood," John C. Goff, Crescent's vice chairman and CEO, says in a press release. The second phase's developer and owner is Crescent Tower Residential LP whereas the first phase's is Crescent Plaza Residential LP.