Two downtown Fort Worth buildings in line for transformation
May 1,2025
See full Dallas Business Journal article by Seth Bodine here.
Two real estate companies are closer to converting historic buildings in downtown Fort Worth from office to apartments.
That's after Fort Worth's Tax Increment Finance Zone No. 8, covering the Lancaster corridor, approved a combined total of $7.35 million in infrastructure reimbursements for converting the buildings. Two companies, Chicago-based 3L Real Estate and O-SDA Industries LLC, are each planning to convert old buildings downtown to apartments. The plans fall into a wave of development occurring around downtown, including the renovation and expansion of the Fort Worth Convention Center and the construction of the Texas A&M Fort Worth campus.
Chicago-based 3L Real Estate purchased a 16-story, 300,000 square foot downtown building at 115 W. Seventh St. in downtown Fort Worth in 2023. The company plans to convert the building to 330 apartment units including studios, one- and two-bedroom units with amenities such as a fitness and business center. Construction is expected to land at about $58 million, according to a presentation to the TIF board. Built in 1952, the building was formerly occupied by Oncor and Fort Worth National Bank.
The board previously denied the $4.75 million reimbursement to cover a portion of infrastructure and ensure 20% of the building had below-market rents for five years, but approved on April 30 a deal that would maintain the rents for 10 years. Fort Worth economic development manager Michael Hennig said there would be clawbacks if the company did not meet the requirements of the agreement.
Elizabeth Beck, Fort Worth council member representing District 9 and the chair of the Lancaster TIF board, said the city has a "better deal" and use of taxpayer dollars by extending the requirement to 10 years.
Johnny Campbell, CEO and president of City Center, and a Lancaster TIF board member, said the conversion of older buildings to apartments plays an important role in the downtown area, which has many older buildings.
"This is bringing people downtown," he said. "It has the affordable component, which is the thing we need to be doing for development, and it's solving what they're now calling 'zombie buildings.'"
3L Real Estate did not immediately respond to request for comment. The firm's CEO and founder, Joe Slezak, previously said he saw opportunity in the North Texas market, and was attracted to the plentiful older downtown buildings and the investments being made in the area, such as the renovation of the Fort Worth Convention Center.
Binyon-O'Keefe building to see new life
The board also approved providing O-SDA Industries LLC with a $2.6 million reimbursement for an affordable housing development. The company plans to convert the former Binyon-O'Keefe building at 210 E. 7th St. and 811 Calhoun St. to a 100-unit senior housing development, costing about $26 million.
Alice Cruz, project manager at O-SDA, said the incentive is one of the last pieces in the funding puzzle needed to begin construction on the project. The company also has about $4 million in historic tax credits. She expects the project will be completed by the end of 2026.
The building, built in 1917, was originally used for a storage facility, and was previously owned by XTO Energy until the company left Fort Worth in 2017. The building is near Le Meridien Hotel, at 811 Commerce St., which sat empty for well over a decade until it was opened as a hotel last year.
Location was part of the equation for picking the Binyon-O'Keefe building for the project, which will eventually be called Georgian Oaks when opened, Cruz said.
"We want to build where there are amenities for residents, and also where we would want to live," Cruz said. "I would always want to live downtown Fort Worth, there's great amenities."
Locations Mentioned: Fort Worth Convention Center Expansion, Texas A&M Fort Worth