Dallas Nears Massive Subsidy for Project with Affordable Units

Sycamore Development has cleared a key hurdle involving its $103 million project in Dallas’ West End.

The Dallas-based developer, in partnership with Hunt Capital Partners, secured initial approval for a $49 million city-backed subsidy to construct the West End Lofts on the 700 and 800 blocks of Elm Street, the Dallas Business Journal reported.

Located near the Dallas Area Rapid Transit West End Station, the project includes 154 residential units, with 63 set aside for affordable housing targeting households earning 30 percent to 80 percent of the area median income.

The development also features 20,000 square feet of retail space, a 25,000-square-foot pedestrian plaza and parking within a renovated 1925 structure.

The centerpiece of the project is the adaptive reuse of the five-story Emerson-Brantingham Building, constructed in 1904. It will house 56 residential units, while a new six-story building will provide the remaining 98.

Funding for West End Lofts is being sourced from several city channels. The City Center Tax Increment Financing District has recommended $28.3 million toward the project, with additional funds drawn from the 2012 and 2024 general obligation bond funds and the public-private partnership fund.

In addition to the West End Lofts, Sycamore and Hunt are also spearheading the adaptive reuse of Dallas’ historic Cabana Hotel, located at 899 Stemmons Freeway. That $55 million project will transform the 10-story building into 175 apartments, offering market-rate and affordable housing options.

The historic buildings will require minimal structural modifications, Sycamore’s Zach Krochtengel said during an Economic Development Committee briefing this week. The full City Council is expected to vote on the project’s subsidy package next week.