Even as its first three buildings are taking shape at CityLine, KDC’s new transit-oriented development in Richardson, State Farm has signed on for even more space. Last July, the company announced it would lease 1.5 million square feet at the project; now, it has announced plans to add a fourth 500,000-square-foot building, taking the total up to 2 million square feet of office space.
The expansion has quietly been in the works for months.
“This is a significant day as State Farm expands on its commitment to the CityLine project and the community of Richardson,” said Steve Van Amburgh, CEO of KDC.
Randy Cooper and Craig Wilson with Cassidy Turley represented State Farm in the new lease. Corgan is the project architect and Kimley-Horn and Associates is the civil engineer. Financing is provided by a syndicate of lenders, led by JPMorgan Chase.
Access to a growing and talented labor pool has been a huge factor in State Farm’s decision to continue to expand in North Texas.
The company’s newest office building will have 12 floors of office space atop a five-level parking garage and about 30,000 square feet of retail space. It will sit at the northeast corner of State Street and Plano Road, directly across from its three other buildings, which also feature office space on top of parking and retail space.
Construction of the fourth building will kick off this summer, with completion scheduled for mid-2016.
State Farm will begin to take occupancy of its first CityLine buildings later this year, in a phased move-in that will extend through 2014 and beyond. The company will shift some employees from its Dallas operations center, which is under contract to be sold.
Cooper praised the team effort behind the project. “The KDC guys have done a magnificent job of doing what they said they were going to do, on time and on budget,” he said. “This expansion never would have happened without that. Hats off to Richardson, the general contractor and suppliers, too. Everyone is performing.”
Along with the 2 million square feet of office space for State Farm, the first phase of CityLine will feature a central urban plaza, designed by the Office of James Burnett (the landscape architect of Dallas’ signature Klyde Warren Park), and more than 92,000 square feet of retail, restaurant, and entertainment space. A 150-room select-service hotel will also be developed, along with 532 apartments, a 17,000-square-foot wellness and fitness facility, and a 41,000-square-foot boutique office building.
“CityLine is not only unique and special in North Texas, it’s it’s unique and special for the whole country,” Cooper said. “The commitment by State Farm to lease 2 million square feet instantly makes the retail work, the hotel work, and the multifamily work.”
Full plans for the massive project call for about 6 million square feet of office space, two hotels, 3,925 apartments, 300,000 square feet of grocery, restaurant, entertainment, and retail space, and three parks.
Beyond the pure size of State Farm’s campus, Cooper said its decision to expand here brings an added sense of stability to the market.
“State Farm is a great company that has been around for a very long time. Insurance is not an industry that is going away. Mortgage servicers, high-tech, energy services … some of those are hot for a while then fall off. State Farm is the poster child for stability. This is a gift to North Texas.”