Transwestern’s Preston Northwest Highway Return Focuses on Lower Density and Community Engagement

Transwestern Returns to Preston Hollow: A New Vision for Luxury Living at Preston & Northwest Highway

The prestigious intersection of Preston Road and Northwest Highway in Dallas has long been a focal point for high-stakes real estate development. Residents of Preston Hollow, particularly those dwelling “Behind the Pink Wall,” vividly remember the intense debates surrounding Transwestern’s initial proposal for luxury apartments on this iconic corner last year. What began as an ambitious plan to acquire properties like Town House Row and Preston Center Apartments quickly escalated into a significant neighborhood battle, marked by legal action and political intervention.

Indeed, the controversy surrounding the initial Transwestern project resonated deeply within the community. Homeowners, represented by seasoned attorney P. Michael Jung, rallied against the perceived over-densification and potential impact on their cherished neighborhood character. The situation even prompted City Councilwoman Jennifer Staubach Gates to recuse herself due to a potential conflict of interest, with Councilman Lee Kleinman stepping in to navigate the complex local politics. The initial proposal, which aimed to transform a glorious slab of real estate dirt into a sprawling luxury complex, faced insurmountable opposition, leading many to believe the project was permanently off the table.

A Shift in Strategy: Transwestern Listens to the Neighborhood

Against all expectations, Transwestern is back, but with a dramatically different approach. After months of extensive dialogue, numerous community meetings, and widespread media coverage detailing the neighborhood’s concerns, Transwestern has demonstrated a remarkable willingness to listen and adapt. This renewed engagement signals a significant shift from their previous stance, emphasizing collaboration and a genuine desire to integrate community feedback into their plans. Mark Culwell, a key figure at Transwestern, wasted no time reconnecting with prominent community stakeholders, including Ashley Parks, a resident living at the intersection of Del Norte and Preston Road, underscoring their commitment to a neighborhood-first strategy.

The developer’s enduring interest in this prime piece of real estate is understandable. It represents a unique opportunity for high-end residential development in one of Dallas’s most sought-after areas. However, instead of pushing a maximalist vision, Transwestern has scaled down its plans considerably, now seeking only one zoning change for approximately half of the property. This revised approach marks a pivotal moment, signaling a potential path forward that respects both development aspirations and neighborhood preservation.

The Historical Context: Behind the Pink Wall and Initial Opposition

To fully appreciate the significance of Transwestern’s revised proposal, it’s crucial to recall the intricate history of this development saga. The owners of Town House Row, a collection of 12 distinctive 1950s-era townhomes, had collectively marketed their properties to developers. Transwestern emerged as an interested buyer, eventually consolidating a deal that included the Preston Center Apartments, strategically located at the corner of Preston Road and Northwest Highway. Reports circulated that Transwestern was prepared to pay premium prices, potentially close to a million dollars per townhome, significantly above their assessed DCAD values of around $380,000.

Despite the initial promise, the deal faltered in the spring, leading many to assume Transwestern had walked away for good. The termination of the initial agreement, while a victory for some residents, was a disappointment for others who recognized the potential for fresh, high-quality housing and the highest and best use of this valuable land. Proponents of the project believed such development would contribute positively to neighborhood values and urban growth, much like Luke Crosland’s vision for a luxury high-rise in the heart of Preston Center. However, powerful single-family homeowners “Behind the Pink Wall” remained staunch in their desire to preserve the existing three-story structures and were vocal about legitimate concerns regarding increased traffic, a persistent challenge in Dallas’s growing urban landscape.

Transwestern’s New Proposal: Reduced Density, Thoughtful Design

Returning to the drawing board, Transwestern proactively re-engaged with the neighborhood, presenting their refined vision at a Preston Tower condo HOA meeting last Thursday evening. This gathering, attended by 60 representatives from all 35 homeowners associations “Behind the Pink Wall,” was a critical step in building consensus. The developer laid out a fresh proposal characterized by fewer units and significantly reduced density, a direct result of extensive community feedback. The new plan calls for 164 luxury units, a considerable reduction from the 220 units proposed last year, and a stark contrast to the original 296 units initially envisioned.

Crucially, the current zoning for the entire property allows for approximately 125 units without any need for City Hall intervention, highlighting the developer’s significant concessions.

The proposed apartments themselves are designed to be spacious and luxurious. The smallest units will now measure 1080 square feet, with pricing estimated at $2.50 per square foot. The average unit size will be a generous 1400 square feet, predominantly featuring two to three bedrooms, catering to a discerning clientele seeking high-end rental living in a prime Dallas location.

The Economics of Re-engagement: Why Transwestern Came Back

One might wonder what prompted Transwestern to revisit a project that seemed so fraught with opposition. Mark Culwell succinctly put it: “It’s a great piece of real estate. As developers, we have a responsibility to this iconic corner. We need to do what’s right here, and we still think it will work and we will have an end result everyone can be proud of.” This commitment, however, likely comes with some financial adjustments for the sellers – the Town House Row owners and the owners of Preston Center Apartments.

Culwell noted that Dallas’s real estate dynamics have evolved significantly in the 18 months since Transwestern first engaged with neighbors. The rental market, in particular, has seen unprecedented strength. This robust demand for high-end rental units now makes a lower-density project economically viable. Additionally, by reducing the building’s size and scope, Transwestern anticipates lower construction costs and a quicker construction period, which directly improves project economics. “The faster they get it going, the quicker the construction period, the lower the carry and the better those economies will be,” he emphasized.

This development underscores three critical factors for successful real estate ventures in Dallas:

• Location: The corner of Preston & Northwest Highway remains an unrivaled address.
• Timing: The current economic recovery and strong rental market provide an ideal window.
• Concept: Demand for high-end, luxury rental units is robust and growing.

Navigating the Preston Center Master Plan: A Timely Decision

The revised Transwestern proposal also brings into focus the ongoing efforts of the Preston Center Task Force, which is investigating a “masterplan” for the entire Preston Center area. For Transwestern and many residents, waiting for the committee’s recommendations could introduce significant delays, potentially jeopardizing the project’s favorable economics given looming interest rate changes. As Culwell highlighted, the real estate business is highly contingent on timing.

A particular concern voiced at the recent Thursday night meeting was whether this area truly wants to be subject to the Tsk Force Master Plan Study. Urban planners often advocate for higher-density, compact living as a solution for population growth in land-limited areas like Dallas. Therefore, there’s a real possibility that the Master Plan committee might suggest even higher density for this prime location, contrary to the neighborhood’s hard-won concessions. This prospect led at least one person at the meeting to suggest pulling out of the Master Plan process entirely.

A Model of Collaboration: Working With the Neighborhood

Throughout this complex process, Transwestern’s handling of the situation has been exemplary. Their approach could serve as a textbook example for developers aiming to secure community support for real estate projects. They initiated dialogue with residents, attentively listened to concerns, meticulously tweaked plans, engaged stakeholders, further refined their proposals, and ultimately returned with a compromise. Critically, they never circumvented the community by going directly to the plan commission. Instead, their message remains clear and humble: Transwestern is presenting this project directly to the neighborhood, seeking their blessings before proceeding.

The developer aims to bring approximately $80 million in improvements to the area, a substantial investment that promises to enhance the vitality and prestige of Preston Hollow. However, this investment is contingent upon securing the community’s endorsement. Should they fail to gain this crucial support, Transwestern has indicated they will move on, leaving this iconic corner to potentially face an uncertain future. This collaborative spirit ensures that the final outcome will truly reflect the aspirations of both the developer and the residents.

Preston Center Apartments & Town House Row

We are dedicated to creating a development that is worthy of this exclusive address at the gateway to Preston Hollow. We look forward to continuing to work closely with you as we move forward on amending our zoning request.

Sincerely,

Mark Culwell, Transwestern