Todd Interests Exits Dallas’s East Quarter District

A champion of downtown Dallas is walking away from one of the urban core’s most ambitious redevelopment projects.

Developer Shawn Todd’s firm, Todd Interests is selling its ownership stake in the East Quarter district to partner J.P. Morgan Asset Management, effectively exiting the 20-acre project they launched in 2018. Dallas Morning News got confirmation of the deal from Todd, who told the outlet that it is expected to close imminently. Financial terms were not disclosed.

The move hands full control of the growing district on the eastern edge of downtown to the global asset manager and marks the end of a partnership that began in 2018. East Quarter was developed by Todd alongside his sons, Philip Todd, the firm’s CEO, and Patrick Todd, a partner at the company.

Over several years, Todd Interests assembled more than 30 properties across eight city blocks, stitching together a mix of 1920s and 1930s-era buildings along Cesar Chavez Boulevard, Commerce Street and Jackson Street. The firm repositioned the former industrial and warehouse stock into offices, restaurants and creative space, aiming to bridge downtown’s core with Deep Ellum’s nightlife and residential growth. It also built the 20-story office tower at 300 South Pearl Street.

The redevelopment of the East Quarter benefited from the nearby revamp of the Dallas Farmers Market, in which a coalition of investors turned four neglected sheds sitting on 17 underused acres into an open-air pavilion, a food hall, retail and multifamily.

How much J.P. Morgan is paying for Todd’s stake remains unclear, but the district is no small asset. Tax records and estimates from Partners Real Estate senior vice president Steve Triolet indicate the district could be worth anywhere from $200 million to more than $300 million, depending on assumptions around income and future development.

The buyout comes as J.P. Morgan wraps up its involvement in another high-profile Dallas investment. It acquired a 60 percent stake in NorthPark Center in 2014 for $362 million. That partnership ended earlier this year, when J.P. Morgan was bought out of its interest in the luxury shopping center.

The exit comes after a string of major, capital-intensive downtown projects for Todd Interests. The firm led the roughly $300 million renovation of Energy Plaza, rebranding the 49-story, I.M. Pei–designed tower as The Sinclair and converting it into a mix of residential and office space. Todd and partners also spearheaded the $460 million redevelopment of the First National Bank tower, transforming the historic skyscraper into apartments, offices, retail and a luxury hotel.

— Eric Weilbacher