2GR Equity, a real estate investment firm based in Grapevine, has made an equity investment into a joint venture with Dallas-based SHOP Development. On Aug. 15, the newly-formed JV acquired the 147,000 square foot retail center at the northwest quadrant of Hillcrest and Arapaho in Far North Dallas.
As the project’s developer, SHOP will be responsible for overseeing and managing the extensive exterior and interior redevelopment of the property, expected to take place over the next 12 – 24 months. Renovations will include substantial landscaping, irrigation, exterior lighting, façade improvements, improved signage and lighting, as well as a number of structural, mechanical and parking lot repairs. In addition, SHOP will be razing one of the six retail buildings to make way for a 1.5 acre City Park. The resolution to purchase this park land was passed though City Council in May 2018.
To help offset the new venture’s redevelopment plans, the City Council passed a second resolution in June 2018 which will reimburse the venture up to $3 million for certain improvements to the property.
2GR Equity Principal and cofounder, David Gregory, believes the density of the surrounding area combined with the investments from the City of Dallas positions the property well for retailers.
“We believe this asset is long overdue for redevelopment given its access, location and visibility,” he said. “When you add the element of a brand new City Park in the middle of the retail center, along with up to $3 million of conditional grants from the City of Dallas, 2GR believed this investment opportunity had a lot of merit. We think this will become a destination for Far North Dallas and the retailers seem to agree given the substantial leasing activity prior to acquisition or redevelopment efforts”.