Highland Park “Mushroom House” not Preservationist Priority

The iconic “Mushroom House” in Dallas’ Highland Park is at risk of demolition after high-profile car dealer Clay Cooley added it to his assemblage of homes.

Cooley and his wife, Lisa, bought the house at 4200 Armstrong Parkway, and they also own adjacent homes at 4208 Armstrong Parkway and 4209 Bordeaux Avenue.

The inner-city suburb prohibits combining the lots into a 3.5-acre megalot, and Clay Cooley attended a Preservation Park Cities meeting last month and said he doesn’t want to cause neighborhood conflict. However, the distinctive and highly visible mushroom house, built in 1997 and designed by Dallas architect Tom Workman, isn’t of great concern to preservationists.

While it does have architectural value, its modern style and exposure on an arterial street make it less viable for preservation.

Rather, they are more interested in preserving the 1920s Tudor-style home on Bordeaux, designed by architect Hal Thomson.

Many historically and architecturally significant homes have been demolished in Highland Park over the past two decades, but even the wealthiest Dallasites don’t always get their way.

Billionaire banker Andrew Beal demolished Highland Park’s historic Cox Mansion, but he put his request for rezoning to build a five-story house on hold after pushback from community members who feared it would set a precedent.

Car dealership owners are frequent buyers of luxury real estate and often have second lives in commercial real estate. The largest shareholder of Carvana, for example, is Arizona’s richest person, and his real estate investment firm is making big moves in Mesa. Ernest Garcia II, who also owns DriveTime Automotive, is planning a megadevelopment with 4,000 homes, plus office and retail via his firm Verde Investments.

Here’s what else happened in Texas real estate this week.

Dallas Mavericks owner Las Vegas Sands backed off of its request for zoning to allow a casino and nightclub in Irving after pushback from residents. It won approval for a Mavericks arena and entertainment district on a 182-acre site that includes the former site of Texas Stadium.

Two Houston developments are proving there’s demand for luxury high-rise living in sprawling Texas. Randall Davis Company pre-sold all but two of 23 units in its London House condominium in River Oaks. And developer Satya added a floor to its planned St. Regis development in the Memorial area, which isn’t set for delivery until 2028, because 40 percent of its units have been reserved.

In distress news, Nord Group’s $38 million loan backed by a Houston multifamily property was sent to special servicing. Landlord Kalkan Capital’s massive storm-battered apartment complex in suburban Houston is in default after the owner stopped making payments on a $54 million loan in June. Besides that, fast-fashion retailer Forever 21’s bankruptcy is leaving 32 vacancies in malls across Texas.

Meanwhile, Google is finally making plans to move into Austin’s “Sail Tower” this year. The tech giant had delayed moving into its 804,000-square-foot full-building lease for years. Developer Trammell Crow Company sold the 35-story building at 601 West 2nd Street to Atlanta-based Cousins Properties for $521.8 million in December.

—Rachel Stone