Costco Wholesale Corp. plans to renovate a 10-story office building and parking garage next to one of its largest Dallas stores after purchasing the office property through the bankruptcy court in a $14.25 million deal.
The members-only shopping club has filed four work permits with the state for construction at the 1980s-vintage office building called North Central Plaza I, at 12655 N. Central Expressway, and its adjacent parking garage. The permits, totaling more than $12.9 million, outline a project scheduled to get underway this month with completion expected by year's end.
The retailer plans to renovate the Dallas office building and parking garage, as well as add a pedestrian path at the property, according to the state work permits. Costco did not immediately respond to interview requests from CoStar News about its plans to upgrade the property. Costco acquired the building in December from Hartman SPE.
This isn't the first time Costco has taken on an office project. In recent years, Costco purchased the former Hertz Corp. office building in Oklahoma City for a new operations center and another office building it later razed in Springfield, Virginia, near one of its retail hubs.
The Dallas office tower is more than 71% leased, according to the latest CoStar data.
Two other office buildings along North Central Expressway also are undergoing major upgrades as a result of being bought or landing a major lease. Dallas-based Triumph Financial plans to transform a 10-story multitenant office building near a top-performing mall into its new headquarters.
Wingstop also recently signed a big lease for its headquarters at an office building being renovated from a single-tenant headquarters to a multitenant office building in the West Village near Uptown Dallas. In both instances, the upcoming tenants in the building said they decided to relocate to North Central Expressway to help recruit and retain talented employees.
For the Record
MG2 Architecture Corp. of Seattle is the project architect for Costco's plans, according to the state work permits.