The 10,075-square-foot building, at 7925 S. Broadway Ave., across from Buffalo Wild Wings, could be filled with retail, restaurants and offices by next summer.
CHB Interests LLC, a group out of Henderson, bought the building in March and is nearly completed with reconstructing the shell.
The first tenant, Sprint, opened a corporate store in a 3,200-square-foot space at the center on Oct. 26, relocating from Olde English Village, Matthew Marshall said.
Marshall, 32, and Casey Hymer, 29, are founding partners in Drake Real Estate & Investments and are the leasing brokers and developers of Broadway Hills Plaza.
The development, which includes different property owners and will include about a dozen commercial buildings when completed, is the first project for Marshall's and Hymer's new business. Marshall was a founding partner of Landbridge Commercial Properties in 2008 and Hymer began working there in 2010.
Hymer said they wanted to expand their brokerage to offer development services so they left Landbridge to start their own business. Investors hire the men to work with the contractors in the development of a property and broker its lease or sale.
Marshall said Broadway Hills Plaza, which sits on 6.63 acres and consists of several buildings owned by different groups, is in a growing area of Tyler.
“South Broadway is an established retail corridor,” Marshall said.
He said there were problems with the title between lien holders. Once the banks foreclosed on the development and the title was cleaned up, it took CHB Interests to come in and buy it and complete the development, Marshall said.
The development is the first in Tyler for CHB Interests, which has properties across East Texas, Marshall said.
Hymer said they essentially tore down everything but the roof and the steel structure and started over, with a new architectural rendering by Ken Killian, of Dallas. “This was his design,” he said pointing to the blue and bronze colored modern-looking building.
They knew the bones to the structure were good, but it had been such an eyesore for so long that they wanted something more modern, grabbing people's attention, Hymer said.
Marshall said the infrastructure and the original site plan approved by the city in 2005 have been improved. They have been working with the city on the new plans.
CHB Interests also owns the pad to the north of the center, which will soon see construction of a building to house restaurants that would complement the tenants in the existing building, Marshall said.
He said it could be a 6,500-square-foot building to house one or two restaurants, but it also could end up being as large as the retail center, depending on what tenants are found. Marshall said that if the large restaurant chain they are talking to finalizes the lease deal, they could get city permits and start construction within 60 days of the deal. He said it could be constructed by the spring.
“We have three or four deals working right now,” he said of possible tenants to the two buildings.
Crews on Wednesday were working to finish the trim and lights on the outside of the building, and Marshall said it should be completed in about two weeks.
The remaining spaces of the inside of the building are unfinished shells to be built out to suit tenants that come into lease space.
The building includes a 5,200-square-foot space that can be leased out to one tenant or can be broken up into as many as three lease spaces, Marshall said.
There also is a 1,600-square-foot lease space available in the L-shaped building.
Marshall said they hope to have the buildings leased by next summer and filled with retail, office and “maybe a dash of medical.” They have had a lot of regional and national retailers and restaurants inquire about the site, he said.
Daniel Kessinger and Jay Schulz, who have worked together for years developing residential and commercial properties, are developing their part of Broadway Hills Plaza to house mostly professional office tenants.
Kessinger said Friday that they bought the already developed property in the spring and started construction three weeks ago on the first of four 4,600-square-foot office condos that will be for sale or lease. He said the first structure being built in phase one of their plans will be a building shell that could be built out to suit one to three office users.
They bought an additional 2.26 acres of raw land, where they have five more pad sites for future office buildings. Kessinger believes the nine-building development will be about a three-year project. As soon as they start selling lots in phase one of the project, they will start the infrastructure in phase two, he said.
Kessinger said he and Schulz were looking for another project to work on when the property came onto the market. “We do see a lot of raw opportunity,” he said of the area, adding that the infrastructure was already in and they could start construction on the property immediately.
Kessinger said they also liked the property because it has a turn lane off the South Broadway Avenue and there are no medians in the area, offering easy access and east exit.
He said they also liked the opportunity for mixed use potential in providing a professional work environment. Offices could be located in the back of the development, with small restaurants and retail in the front of the development, he added.
'A GOOD PLACE TO BE'
Marshall said to the south of the Broadway Hills Plaza development is the renovation of the former Rose City Baptist Church, a 4,900-square-foot facility at 8101 S. Broadway Ave., bought by Texas Spine and Joint Hospital for $2.5 million.
Texas Spine & Joint Hospital filed a building permit with the city in October to renovate the former church for an urgent care facility.
Marshall said American State Bank also is building a new bank branch on 2 acres of land in the area, at Cumberland Road and South Broadway Avenue.
A 77-acre property south of Broadway Hills Plaza also could be developed into the Village at Cumberland Park, a shopping center made up of 12 large buildings offering mixed retail, restaurants and entertainment businesses.
On Oct. 24, the Tyler City Council approved a site plan for the proposed development, which sits between Academy Sports + Outdoors and Gander Mountain.
The Retail Connection L.P., a Dallas-based company, is still in a feasibility period, conducting inspections and engineering work for the property it plans to purchase.
Construction could begin next year and potentially wrap up by 2014, city officials said. Marshall said with all of the developments and construction going on near his project on South Broadway Avenue, along with the nearby Loop 49 and the planned extension of Cumberland Road, “It's a good place to be.”
For more information on Broadway Hills Plaza, call Drake Real Estate & Development at 903-581-3737.