How does a Wal-Mart/Sam's Club combination sound for Timbercreek?

My commercial real estate guy passed this one along  -- he says it's a solid tip, though it's just that. Nothing has been confirmed yet.

He has been told that Wal-Mart and developer Trammell Crow want to put a Wal-Mart on top of a Sam's Club on the 44-acre apartment complex property. Timbercreek is located at the intersection of Skillman and Northwest Highway, and was the subject of a contentious 2006 zoning battle between Crow and the apartment's residents.

If this is true, it raises several disturbing questions:

• The council, which voted almost unanimously to OK the deal, threw a couple of thousand people out of their homes to build a Wal-Mart. Which would be across the street from a SuperTarget. Which is down the street from another Target. Which is just 10 minutes away from a Sam's Club and Wal-Mart Supercenter at Northwest Highway and Garland Road. Highest and best use is one thing, but how many discount stores do we need around here?

• Crow, according to several real estate types I talked to, had to have an agreement with an anchor tenant when it asked for the zoning change. This is a multi-million dollar deal, too big to do on spec. Which means the developer was at best disingenuous when it told the council it didn't have a retail tenant in hand. If Crow had told the council it wanted to throw a couple of thousand people out of their homes to build a Wal-Mart which would be across the street from a SuperTarget which is down the street from another Target which is just 10 minutes away from a Sam's Club and Wal-Mart Supercenter, the council might have had second thoughts. Or one likes to hope so, anyway.

• Typically, a Sam's Club is 110,000 to 130,000 square feet, and a Wal-Mart is 107,000 square feet. This is a 2 million-square-foot property. So why does it want to build up instead of out? How much development does Crow want to cram on that site? What other zoning changes related to parking and density will it ask for? What will all that development do to traffic there, already a mess during morning and evening rush hours?

• This can't be good news for the proposed Lake Highlands Town Center, especially if Crow plans more than a couple of fast food restaurants and discount shoe stores on pad sites on the property. The original plan OK'd by the council mentioned high-end townhomes. Throw those in there, and this site is directly competing with the town center, with the added bonus of a Wal-Mart anchor.

• What did Wal-Mart -- if this is indeed Wal-Mart going in -- do to deserve such a sweetheart real estate deal? Apparently, it owns the land under its Park Lane Sam's Club. Coincidentally, that part of Greenville Avenue will soon be worth a fortune, courtesy of the forthcoming Park Lane Place development. In other words, Wal-Mart gets to sell its Park Lane land (which has increased in appraised value by almost a third since 1999), pocket the cash, and get a better location, all without breaking a sweat.

Comments

[LSC]

I can't believe these people lost their homes for a Wal-mart. Please say it ain't so!

[Bill Kennedy]

And let's not forget the Wal-mart SuperCenter going up by LBJ and Skillman, too -- saturation!

This whole (unique) thing was discussed at DallasMetropolis last August. It was confirmed as more than a rumor (then) by more than one person there. For that reason alone I believe this to be much more than a "solid tip" now -- I think it's a go.

Wal-mart wants a new building, they can sell the land at Park to a multi-use development and make a fortune. They can get a new Sam's Club and a SuperCenter where they want it -- on a main thoroughfare. I was told way back that the main reason Target kept/refurb'ed their Medallion store, when they built their SuperTarget a mile north, was so that Wal-mart couldn't build a SuperCenter at Medallion (in the Target space).

So, that means the Medallion Target will likely close in order to consolidate a mile north after this happens -- no reason to keep it open after WallyWorld is across the street. It also means all that apartment rebuild, by the Village across NW Hwy, will soon have a lovely box store and parking lot to look at. Can't make LPC too happy.

And you are right -- it does not bode well for attracting tenants to the proposed LHTC.

Trammell Crow has never been above doing sweetheart deals in Dallas. And Dallas has never been above doing sweetheart deals with them. "Good ol' days are back" was something said by the leader of the Dallas Citizen's council a short time ago, was it not?!

[Triple Wildcat]

Not just throwing people out of their homes, but paving over valuable greenspace. Don't forget that the creek where the apartments now sit is a rare wildlife habitat. I'm no tree-hugger, but losing a bit more of the "green" around Dallas for the "green" of Wal-Mart and developer cash just makes me sick. I don't mind losing old apartments as much as losing a pretty creek in the middle of our concrete city.

Is it too late to turn back the clock? Can't Target just sell its Medallion Space to Wal-Mart? Seems like the obvious, easy solution. That way Wal-Mart gets its Skillman-NW Hwy location, we get to keep the creek, and there's no empty store at Medallion. Makes too much sense - and doesn't make money for the right people.

[MG]

If Trammel Crow wants to bring yet another big box into the mix at that particular location, why not try to lure Costco into Dallas? Costco is superior to Sams/Walmart in product quality and customer service. I won't drive to North Plano, Costco's closest warehous location. It seems to me Costco is losing a huge customer base by not locating within Dallas. I don't think they have a store within Dallas County and I wonder why.

[Pete Oppel]

What happens to the Sam's Club right next door, at Park and Greenville?

[Jeff Siegel]

As noted, Wal-Mart apparently owns the Park Lane land. So they get to sell it just in time for the mega-development of the Park Lane area.

[Brian]

I just had plans for Timbercreek Crossing sent to me. I don't see a ton of discussion on the project on this blog, but there are several tenants that appear to be committed:

1) Wal-mart
2) JC Penny
3) Bank of America
4) Chik-fil-a

The plan has 4 smaller unleased buildings/spaces and at least one undeveloped lot which is room for expansion. No plans or room for a Sam's.

I'm not thrilled about the tenants committed, but they don't appear to be competition for the Town Center. Hopefully those unleased buildings will be restaurants. One looks tiny - no bigger than a sonic.

If the blog manager wants, I can email the plans I received.

[wanting the best for Lake Highlands]

Rumor has it that TC has the triangle bounded by Royal, Skillman and Fair Oaks Crossing as well as the eastside corner where our wonderful "Star Market" is under contract too. That is getting close to the LBJ corridor so I can only imagine what they want to build there. Probably Mixed Use, high density including more apartments.

I wonder where we will build the new schools to handle all this influx of kids that will come with "high end" apartments ?????

[Nimo]

Jeff:
Does the site plan show a garage for parking or is it all on the site?