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City staff, CBRE brief committee on priority real estate inventory and market study for 2929 Southampton
Summary
City staff and outside advisors briefed the Government Performance and Financial Management Committee on April 22 on a prioritized inventory of city real estate and a CBRE market study for 2929 Southampton that recommended testing market interest and technical due diligence before any redevelopment or sale.
City staff and outside advisors briefed the Government Performance and Financial Management Committee on April 22 on a prioritized inventory of city real estate, next steps on several parcels and a market study for the former medical facility at 2929 Southampton.
Donzel Gibson of the City Manager's Office reviewed a phased approach staff will use to evaluate about 1,000 city properties and highlighted several high-priority parcels that are the focus of near-term due diligence: 1000 Bellevue (property-condition assessment by CBRE in progress), 4150 Independence (fire-department due diligence to evaluate potential new station), and 2929 Southampton (market study completed by CBRE). Gibson told the committee other properties remain on a phase-2 list while staff concentrate resources on the priority group.
CBRE's representative (Peter) presented the firm's assessment of 2929 Southampton and described what a market participant would need to know before deciding whether to operate the site or repurpose it. Peter told the committee, "there's a significant amount of deferred maintenance that's obvious to anybody who walks or tours the facility," and warned that "getting up to a CO could be quite cost prohibitive." He added that capital-market conditions have changed since 2021'22 and "equity investors today need much higher returns on their capital than they did just 24 or 36 months ago," which affects what product types are financeable.
CBRE's high-level conclusion for 2929 Southampton: given the facility condition and current capital-market requirements, the most financeable near-term development strategy would be production of single-family product (for sale or rent) rather than immediate rehabilitation of the existing hospital building. CBRE advised the city to obtain actionable, market-tested proposals (offers from developers/operators) and perform standard technical due diligence (facility condition assessment, environmental site assessment, utility and entitlement reviews) before final decisions.
Why it matters: the parcel was acquired with public-interest purposes in mind; committee members and staff noted the need to reconcile acquisition intent with market reality and community needs (including homelessness and permanent supportive housing). Several council members urged that any market test or sale pathway be coordinated with district representatives and with sufficient community and housing-policy analysis.
Other inventory notes and near-term steps
- 1000 Bellevue: staff said a CBRE property-condition assessment is underway to inform sale or repurposing decisions. - 4150 Independence: the fire department requested due diligence to evaluate the site for a potential new fire station; staff said that effort is exploratory and would not by itself declare the property surplus. - 7800 Stemmons and other larger assets: staff said it will recommend surplus declarations where appropriate, but emphasized additional due diligence is required for complex sites (for example, Dallas Executive Airport non-aviation parcels are subject to federal grant-assurance rules). - Bullington Truck Terminal: negotiations with a potential operator were described as near conclusion; staff expects future briefings and executive-session discussion.
Committee direction and next steps
Committee members pressed staff to coordinate closely with the council member representing the affected district, to present baseline checklists and internal due-diligence guardrails before additional acquisitions, and to bring expert-reviewed procurement specifications for the larger strategic real-estate plan. Gibson said staff is preparing procurement specifications for a third-party real-estate strategic plan and has engaged peers and potential partners to QC the scope; staff aims to solicit third-party quality-control input this summer.
Ending
Staff will return with the CBRE-driven technical assessments as due diligence completes, with recommended next steps (market test, disposition or redevelopment) and with the larger strategic real-estate procurement timeline.
