Case Study No. 1 – Mixed Use
Hotel Palomar and Residences
Dallas, Texas
Location:
Southeast corner of Mockingbird Lane
and Central Expressway in Dallas
Prime intersection located near Southern
Methodist University and the future George
W. Bush Presidential Library
Proximity to Dallas Area Rapid Transit
station, KATY Trail, Mockingbird Station
and the Park Cities
Description:
Hotel Palomar Mixed Use and
The Residences at Hotel Palomar
392,000 square feet on 5.34 acres
Total Cost: $95,000,000
Dallas’ first urban resort offering the
four-star Hotel Palomar, a 198-room
Kimpton hotel, 72 residential condominium units,
shopping, restaurants and conference facility
Background:
Realty America Group acquired the property in November 2004 from the Maharishi School of Vedic
Science (founded by Maharishi Mahesh Yogi). Designed by acclaimed Dallas architect Ralph
Kelman and developed in 1968 by the Tycher brothers, it was the largest Hilton Hotel in the nation
at the time, with 390 rooms. For years the Tycher development stood for the quality of life and upscale hospitality offered by the City of Dallas. The historical property fell into disrepair in the 1990’s
until it was reopened in September 2006 by Realty America Group.
Challenge:
If combining a 4-star hotel, restaurants, retail and luxury residential weren’t enough of a challenge,
add in a 37 year old building on a very tight site and the challenges seem to multiply. The cost of
constructing underground parking was of concern as well. In order to get the right amount of
building area on the site, the height of the buildings would push the limits of the “residential
adjacency slope” as required by the City of Dallas.
The existing buildings were full of asbestos and
mold, but the “bones” of the structure were very
good. Opening the project in phases would be
a challenge, since each of the parts are
interwoven and on top of each other.
In addition, the KATY Trail Master Plan had been
routed away from the project due to lack of
cooperation by the previous owner. We wanted
it back, running along side the entire eastern
boundary of the site. All of this had to be
accomplished while creating a unique “urban
resort” feel in the middle of a busy intersection.
Results:
Hotel Palomar was opened in September 2006 to rave revues along with Central 214, one of the
top-rated restaurants in the City. The Residences at Hotel Palomar were opened in January 2007.
Case Study No. 1 – Mixed Use
Hotel Palomar and Residences
The historical Trader Vic’s Restaurant was brought back alive and opened in February 2007, with
much of its original décor and wood carvings. The developer also introduced New York’s Exhale
Spa to Texas, a key component to the resort development.
The developer approached the City of Dallas for re-zoning after meeting extensively with neighborhood groups, City leaders and City staff. The project team successfully demonstrated to the Dallas
City Council that shared parking and traffic controls would allow for a single level underground
parking garage, thus saving millions of dollars should another parking level be required. The
Council also approved building heights and density, so that the required plan could be built.
The developer successfully re-routed the KATY Trail adjacent to the project and became the
catalyst to move the project forward, along with $3 million in TX DOT funding for a pedestrian
bridge over Mockingbird (scheduled for 2008 start). All of the asbestos and mold was abated within
budget and each phase of the project opened successfully.
Hotel Palomar is recognized as the “flag ship” hotel for Kimpton Hotels and Restaurants. The City
of Dallas did not have to provide any subsidies for the project, which is now known as a major
catalyst for the rejuvenation of the neighborhood and transit oriented developments in Dallas.
Project Team
Developer:
Realty America Group
Behringer Harvard Funds
Epperson Company
Lender:
American National Bank
Texans Commercial Capital
Architect:
Three Architecture
Interior Design:
Cheryl Rowley Design (Hotel)
Paul Draper (Condominiums and Restaurant)
Landscaping:
Linda Tycher and Associates
General
Contractor:
Walton Construction
Case Study No. 1 – Miixed Use
Ho
otel Palom
mar and Res
sidences
HOTEL PALOMAR
P
Total Area:
199,000 SF (+90,000 SF Parking Ga
arage)
Total Cost::
$48,000,000 (Constru
uction Cost: $22,300,000)
Hotel:
Four-sttar, 198-room Palomar
P
Hotel
Managed by Kimpton Hotels & Resttaurants
Suites (10%), Meeting
g Space (12,00
00 SF)
Retail:
Exhale Spa (full service, 9,000 SF)
Central 214 Restaura
ant (7,000 SF)
ant (8,000 SF)
Trader Vic’s Restaura
e Berman Galle
ery (3,700 SF)
Brooke
Brutt LL
LC (upscale Ch
hocolatier & Ch
hampagne)
Lakesid
de Cleaners & Boutique Reta
ailers
Lofts:
12 loft condominium
c
u
units
(900 SF to
o 1200 SF)
Condo Prices: $350,0
000 to $450,000 ($315 PSF)
Pentho
ouse: $2,500,00
00 (shell condittion)
on:
Constructio
Start: August
A
2005
Open: September
S
200
06
Description
n:
The existing 10 story building was completely
c
gutte
ed with only the
e structure and
d exterior skin
remaining. The single
e level undergrround parking garage
g
was reu
used and the 2 story wood fra
ame
portion was demolished. All new intteriors and building systems meet
m
four-star standards
s
in a
contem
mporary resort environment.
e
L
Large
windowss enclose the old concrete ballconies, providing
unique guestroom designs.
Amenitties include con
nference center, full service spa,
s
fitness cen
nter, top-rated restaurants
r
and
d
boutiqu
ue retail. The hotel
h
and spa are
a connected to
t the Residences at Hotel Pa
alomar through
ha
seclude
ed courtyard (w
with private cab
banas) and Pen
nnsylvania Flag
gstone sun decck (with infinity edge
pool).
Case Study No. 1 – Mixed Use
Hotel Palomar and Residences
THE RESIDENCES AT HOTEL PALOMAR
Total Area:
192,000 SF (+49,000 SF Parking Garage)
Total Cost:
$45,000,000
Construction:
Cost: $28,400,000
Start: June 2005
Open: January 2007
Condo Tower:
59 Luxury Residential Units
1500 SF to 3500 SF
Condo Units:
Price - $490,000 to $1,600,000 ($375 PSF avg.)
Ground Villas:
Price - $950,000 to $1,400,000 (shell)
Penthouses:
Price - $1,500,000 to 2,300,000 (shell)
Description:
A new nine-story condominium tower connected
to Hotel Palomar includes large terraces,
Community Room, Library, Board Room,
barbeque terrace, fitness center, private storage
rooms and underground private parking garage. Contemporary interiors reflect the urban resort
character of the entire development. The entry lobby and porte cochre introduce 24-hour security
and valet parking. Residents have exclusive use of a secluded courtyard with private cabanas,
fireplace, stone water feature and lush landscaping. Access to Hotel Palomar is through a shared
resort-style sundeck of Pennsylvania Flagstone, casitas, and infinity edge pool. The adjacent
KATY Trail connects residents with miles of pedestrian trails, White Rock Lake and the nearby
DART station.