Construction on a long-awaited project on North Henderson Avenue in East Dallas could begin soon.
Acadia Realty Trust plans a retail development on Henderson, after paying $85.4 million for a 10-block stretch of the hip restaurant and retail district last year, the Dallas Morning News reports.
The New York-based firm has a $3.4 million plan to build more than 12,000 square feet of new retail buildings on four undeveloped acres along Henderson, according to documents filed with the Texas Department of Licensing and Regulation.
Acadia bought the properties from CIM Group and Mark Masinter’s Open Realty Advisors in May. The portfolio also included 15 prominent retail buildings, totaling 124,000 square feet. It was Acadia’s first purchase in Texas.
The purchase was strategically-timed, as the Henderson Avenue area has seen a big boom in business, Acadia Realty CEO Ken Bernstein said in a recent conference call with securities analysts.
“We’re also seeing increased demand and markets experience strong demographic growth,” he said. “An example of this is our recent acquisition in Dallas on Henderson Avenue where due to the growth of the residential community surrounding the Knox-Henderson corridor, we’re already seeing leasing spreads of about 20 percent.”
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“And this is even before we have executed on the expansion and rejuvenation of our assets on that street. In conversations with our retailers in relation to new store commitments, they are generally looking past this current period of economic uncertainty and committing to key locations, especially for unique mission-critical locations like we have in our portfolio.”
NIMBY opposition arose in 2018 over Masinter’s vision for Henderson Avenue. However, a zoning change for the project wound up earning unanimous approval from the Dallas City Council thanks to younger residents voicing their support for the project.
“I know a lot of people are going to still be upset,” council member Adam Medrano said at the time. “I think a lot of folks wanted to deny it outright.”
Under Masinter’s ownership, Henderson Avenue underwent a tenant transformation, attracting Sprouts grocery, Henderson Tap House, Fireside Pies, Warby Parker and Tecovas.
— Maddy Sperling