COIN’ NORTH

FOR THE PAST decade or so, the “hot” area of the U.S. has been the Sunbelt. Now the Frostbelt is making a comeback. But, oddly enough, this means opportunity for Dallas real estate developers.

During the Dallas development boom, new products, methods of finance and even construction were introduced to the marketplace. Dallas developers, having pioneered these new techniques, were well positioned to move northward to take advantage of shifting market opportunities.

In the vanguard of Texas firms making their mark outside the state are the big four: Trammell Crow, Vantage Companies, Lincoln Properties and Paragon Group. In its latest survey of real estate developers, Corporate Design & Realty magazine placed all but Lincoln in the top 20 nationwide. (The editors concede that Lincoln failed to answer its questionnaire and, along with most industry analysts, believe Lincoln remains in the top 10.) A fifth Dallas firm, Criswell Development, was a newcomer to the top 20.

These firms have long had a nationwide reach, and that reach is increasing: Trammell Crow Co. is busy redeveloping New York City’s Times Square. Crow and Lincoln are becoming major players in the U.S. hotel market, and Vantage continues to be a leading national developer of warehouses.

But smaller, newer Dallas companies are also moving north in search of opportunity. Formed one year ago, Prism Hotel Development Co. is moving aggressively in northern climes. According to Prism chairman Steve Van, “We are not about to abandon Dallas- we recently purchased the Melrose in Oak Lawn and we’re building a Doubletree at the intersection of Luna Road and LBJ. But we will be taking Doubletree’s new hotel concept, the Compri, to Chicago, Pittsburgh, Detroit and, hopefully, elsewhere.”

Van says the Frostbelt opportunity will allow firms like his to play catch-up. “For the past 10 years most of the available development money has come south or gone west. No one was interested in projects in most northern cities. So they missed out on new hotels, the latest retail concepts and modern office buildings.”

If Dallas has evolved into the nation’s development capital it may be because of the thousands of young men and women who have been trained within the ranks of Dallas’ megadevelopers-men and women in love with the development game and lusting after the riches it can bring. And if they can’t make it here, they will likely look elsewhere to make their fortune.