DALLAS — This story was originally published by our content partners at the Dallas Business Journal. You can read the original version here.
After acquiring a big chunk of the Dallas Design District in 2022, a developer duo is launching a transformative mixed-use project that will include a striking 17-story office tower, a 30-story residential tower and 45,000 square feet of high-end retail, design showroom and dining/entertainment space.
Dallas-based HN Capital Partners and New York-based McCourt Partners aim to reshape the Design District's emerging Hi Line area with the development positioned at the corner of Oak Lawn Avenue and I-35E, HN Capital founder and Managing Partner Vipin Nambiar told Dallas Business Journal.
The development, called Hi Line Square, will create a "dynamic urban gateway" that integrates office space, luxury residential and curated shopping, showroom and restaurant space, Nambiar said. Goals include bringing more residents to the Design District and creating a more walkable environment along Hi Line Drive, which this year added a connection to The Loop trail project. Hi Line Square would be just down the road from the Urby apartment towers, the first of which opened in 2022 as the tallest building in the Design District, underscoring the increased density in this desirable corner of Dallas.
"What we’re doing is trying to respond in a thoughtful manner to how we think the Design District ought to be developed," Nambiar said. "The project aims to create a high-quality, mixed-use development that is responsive to urban design and inclusive to the design industry."
Hi Line Square’s 17-story tower will offer 186,000 square feet of office space with hospitality-inspired amenities including a lounge and conference center connected to a 6,000-square-foot outdoor terrace with gathering and dining areas. Its 30-story residential tower will have 300 units including penthouses, townhomes and Dallas' highest swimming pool overlooking the city skyline, Nambiar said. The ground and second floors will house 45,000 square feet of upscale retail and showrooms along with diverse dining options, he added.
Construction on Hi Line Square is expected to begin in 2026, with project completion targeted by 2030. Nambiar said it’s too soon to discuss construction costs but HN Capital and McCourt Partners are the financial backers with no other third-party backers expected. The zoning application process is underway, with a request for a zoning change submitted Dec. 10 to the City of Dallas. Nambiar expects the necessary zoning permits to take nine months to a year to obtain.
"This is still in the zoning application stage," Nambiar said. "We haven’t fully priced it out yet. You’ve got to get further along with design to price it."
Designed by Perkins & Will, Hi Line Square aims to meld the industrial charm of the Design District with modern design in a way that enhances the energy of the industrial-chic enclave. The developers and Perkins & Will are currently interviewing general contractors for the project.
Materials like brick and concrete will be used in the construction to honor the area’s history, while glass and metal accents will add the contemporary touches, Nambiar said.
The building's stepped towers will feature terraces and a pedestrian-friendly plaza centered around a mature heirloom tree. Hi Line Square will have lushly landscaped spaces and direct access to the Trinity Strand Trail and The Loop Connector and will tie into Victory Park and Uptown.
HN Capital and McCourt Partners acquired a core piece of the Design District from Dunhill Partners in 2022. It spans more than 40 acres and includes nearly 800,000 square feet of leased showroom, retail and flex office space, in addition to the site for Hi Line Square.
In the years since the acquisition, development of large projects stagnated in Dallas, as it did across much of the country, as interest rates steadily rose, Nambiar said. That makes the timing and market dynamics right for a project like Hi Line Square, he said.
"When the rate hike cycle started [in late 2022], you saw development basically shut down," he said. "By the time we’re in 2026, we’ll have gone three, four years with no real new-development efforts. It’s still a city that’s growing, in our view. The city needs some additional supply. We want to be ahead of the cycle."
Jordan Lang, president at McCourt Partners, said the vision is to create a high-end destination that "embodies local character while offering a globally inspired, bespoke atmosphere."
"This project captures the spirit of the Dallas Design District — a place where culture, commerce, and creativity collide," Lang said in a statement. "Our vision is to create a high-end destination that embodies local character while offering a globally inspired, bespoke atmosphere."
Founded in 2017 by Nambiar, HN Capital Partners is a real estate investment and development firm with holdings in hospitality as well as distressed real estate. HN's collection of properties includes the iconic Rosewood Mansion on Turtle Creek hotel and restaurant and the W Dallas in Victory Park, as well as Hotel Per La in Los Angeles.
McCourt Partners is a family-owned real estate development, investment and management company. With more than $1 billion of permanent capital, it has made significant investments in flagship projects in New York City, Los Angeles, Austin, London and Miami, as well as Dallas. The firm has more than 10 million square feet of assets planned, designed, financed or under development.
