Best Real Estate Deals 2015: Rehab/reuse winner, former Statler Hilton and Old Library Redevelopment Project

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One of downtown Dallas’ largest redevelopments underway is expected to turn a long-time vacant historic hotel and adjacent library building into an entertainment destination.

The $175 million redo of the historic Statler Hilton hotel and the adjacent library on Main Street plays up the property’s storied past.
The Statler Hilton, which has been vacant a decade, will be redeveloped by the group into luxury residential tower with a retail component.

Once redeveloped, American Development Group President and CEO Mehrdad Moayedi said the entertainment hub will include a music venue harkening to the Statler Hilton’s roots.

“We’re going to bring back the original setup to the hotel, which includes skyboxes and a high ceiling in the ballroom, and make it a music venue,” Moayedi said. “We will have about 14,500 square feet of space there that can hold about 800 to 1,000 people.”

In its heyday, the Statler Hilton hosted luminaries like Elvis Presley and was the hotel where Tina Turner left her abusive husband, Ike, in 1976, with only 36 cents and a Mobil credit card.
Moayedi’s vision for the project extends beyond the walls of the Statler Hilton and the adjacent former library. He’s been buying up property to make into a destination he’s marketing as the Statler Strip, which Moayedi expects will attract music-loving crowds into downtown Dallas.
He has already purchased an adjacent building at 2026 Commerce St. to create a nightclub for hotel guests and residents to frequent, and he wants to expand his redevelopment vision to two nearby parking lots next to the Statler Hilton.
The plans for the historic property’s redevelopment include 7,800 square feet of retail space, 19,000 square feet of restaurant space, a 2,200-square-foot hotel bar and 2,900 square feet of meeting space. Moayedi said he plans to add a high-end spa and four restaurants in the space. He declined to name the restaurants.
The Statler Hilton will also include a hotel amenity deck with a rooftop bar, a 60-foot long swimming pool, artificial turf and a movie screen.

The remainder of the property will include 229 apartments (11 floors of the building) and 164 hotel rooms (five floors of the building).
Built in 1956 as a flagship for the Statler Hilton chain, it has been closed since 2001. The National Trust for Historic Preservation included the Statler Hilton on its 2008 list of most endangered places, citing its importance in American mid-century design.

The developer plans to apply for historic tax credits. The city of Dallas has kicked in $43.5 million in tax increment financing to help support the $175 million redevelopment.
Construction is slated to start this year, with completion expected in late 2017.

Why it won
The project breathes new life into an historic building vacant since 2001
Project size
669,066 gross square feet
Location
Several locations in downtown Dallas on Commerce, Jackson and Harwood Streets.
Key players
Mehrdad Moayedi, Centurian American Development
Tamara L. Leak, Karl Stundins and Karl Zavitkovsky, City of Dallas Office of Economic Development
Adam Jones, Merriman Architects and Associates
Leobardo Trevino, Ricchi Development Co.
Eric Schmitz, Schmitz Realty Group
Jerry Merriman and Merriman & Associates Architects
Lew Wood, Andrew Doster and Darden Orand of Henry S. Miller
Centurian American Development Group
Fiamma Partners LLC

 

-Candace Carlisle