| Dallas,
Texas–September 15, 1999–On September 1, The Kirby Building enjoyed her
day in the sun, or rather, in the spotlight, when approximately 750 people joined together
to celebrate her second opening after 86 years. Amid the balloons, the toasts, and the
models dressed in the fashion of the 1910s, The Grand Old Lady made her second debut as
The Kirby Residences on Main. While her exterior was the same, inside she boasted 156 cozy
and comfortable one- and two-bedroom apartments and lofts, as well as state-of-the-art
technology support to help propel residents into the 21st century.
Built by beer magnate Adolphus Busch in 1913 as a companion to his
Adolphus Hotel, The Kirby helped boost the growth of the Akard Street canyon, which at one
point was considered the busiest street in downtown Dallas. By the same token, as the dust
settles from the re-opening celebration, The Kirby's influence on the new downtown Dallas
is starting to be felt. Even while people were celebrating in the lobby below, The Kirby
Residences on Main were already 91 percent leased and 74 percent occupied.
As of September
2, a few of the larger 954- to 2,538-square-foot
apartments were available. Affordable
sizes range from 502 to 976 square
feet, ranging in price from $725 to
$1,090, and market rents range from
$725 to $4,000 for 583- to 2,583-square-foot
units.
Developer Craig Hall isn't surprised that The Kirby has attracted
interest. He, himself, was drawn toward The Kirby's charisma during the early 1980s.
"We bought The Kirby in 1983 because she was unique," said Hall, chairman of
Hall Financial Group, which spearheaded The Kirby's renovation. "We decided to
convert her from an office building into a residential building during the early 1990s
because we believed that would fit well with a downtown revitalization and The Kirby was
no longer viable as an office building. We are very pleased to reach the end of a more
than six-year journey of preserving the soul of The Kirby past while bringing `The Old
Girl’ technology of the future for the use of today," said Hall.
What worked in Hall's favor was when the Dallas city council
approved a resolution establishing guidelines for the Intown Housing Program in 1993. At
that time, the council authorized the city manager to request $25 million in city
Community Development Block Grant funds from HUD. In early 1994, the city approved ten
requests for qualification proposals including that of The Kirby.
In the end, renovating The Old Girl cost $24 million. Of that
amount, approximately $6.4 million came out of Hall Financial's coffers, with $16.5
million coming from debt financing. Financing on the project was very complex. Hall
obtained a first mortgage with Malone Mortgage, backed by HUD insurance, and a second
mortgage from the City of Dallas as part of its Intown housing program. The project also
received funds from the City Center Tax Increment Finance (TIF) District for a façade
easement and surrounding street and sidewalk improvements.
While the city and the private sector were supportive, not all was
smooth sailing during the renovation. A lack of parking meant Hall Financial had to
purchase adjacent land to build a covered parking lot. Ever-increasing construction costs
were also common.
"It's tough to predict what the costs are on
something like this, and what challenges will arise because of The Kirby's age and
historical designation," Hall said. We were presented with dozens of unforeseen
conditions that required decisions regarding additional expenditures. In most instances,
we elected to maintain high quality of the product at greater expense.
Even with the challenges and costs of The Kirby
renovation, Craig Hall wouldn't have traded a minute of it. "This renovation has been
so important for the growth of downtown," he said. "With the trend moving toward
urban living, we seem to have hit the right time and the right place with The Kirby. We're
just glad to give the Grand Old Lady a shot at another 86 years." |
