State Farm adds fourth building to Richardson campus project


State Farm adds fourth building to Richardson campus statefarmproject

Tom Fox/Staff Photographer
Construction is underway on the State Farm Insurance complex in Richardson. Developer KDC said Friday that it’s adding a 500,000-square-foot office tower, increasing the project’s size to 2 million square feet.

State Farm Insurance’s 1.5 million-square-foot campus under construction in Richardson is already the biggest office development underway in North Texas.

But apparently it’s still not big enough.

Developer KDC said Friday that it’s adding a fourth, 500,000-square-foot office tower, which will also be leased to the insurance giant.

The 12-story office building will include a five-level parking garage and 30,000 square feet of ground floor retail space. It will be across Plano Road from where the first three buildings are going up.

“With this fourth building, the project will jump Plano Road and open up the whole development for other office, retail and apartment construction,” KDC president Toby Grove said Friday. “For the overall development, this is obviously a big deal for us and State Farm.”

Back in July KDC and State Farm kicked off the huge mixed-use development with construction of 13-story, 15-story and 21-story buildings on the west side of Plano Road at Bush Turnpike.

The entire 186-acre project KDC is building around State Farm’s office towers is called CityLine.

The CityLine development in the first phase will also include more than 90,000 square feet of retail, a 150-room hotel, 532 apartments, a 17,000-square-foot wellness and fitness facility and a 41,000-square-foot boutique office building just east of North Central Expressway.

Construction on the next State Farm building will start this summer. And the insurance company begins moving into the campus at the end of this year.

East-west connection

The fourth State Farm building won’t open until 2016, Grove said.

“We are in the design phase of that building right now,” he said. “The exteriors will be a little different but complementary of each other — we didn’t want to make them identical.”

KDC is also looking at ways to connect the east and western portions of the CityLine development across Plano Road. That might include a pedestrian bridge over the roadway.

“We are trying to tie both sides of the development,” Grove said. “The idea is to continue what we have done on the east side with more of an urban environment.

“We’ve talked with our apartment partner on the first phase, and they are looking at expanding on the other side of Plano Road,” he said. “We are actually looking at another hotel and talking to some other office users about sites over there.”

KDC has been working with Irving-based apartment builder JLB Partners on the first phase of its development.

And it’s been in talks with tech company Raytheon Corp. about leasing a big block of office space in the Richardson project, too, real estate brokers say.

Shopping space

When completed, CityLine is expected to have about 6 million square feet of office space, almost 4,000 apartments and more than 300,000 square feet of shopping space. Whole Foods Market has been mentioned as a possible grocery anchor for the shopping center.

Randy Cooper and Craig Wilson with Cassidy Turley negotiated the new State Farm office lease expansion. Corgan is the project architect on the entire State Farm complex, and JPMorgan Chase provided financing.

State Farm Insurance’s new Richardson office campus project is part of a nationwide consolidation of the Illinois-based company’s business facilities.

State Farm is building another sprawling office campus outside Phoenix.

And in Atlanta, State Farm is leasing a new 585,000-square-foot office building with plans for two more.

The Atlanta project is also being built by Dallas-based KDC.

KDC said Friday that it will break ground this summer on the building in the Atlanta suburb of Dunwoody. The offices will be located adjacent to a mass transit station, just like the project in Richardson.

Old center sold

State Farm also said Friday that after the new Richardson buildings are open, it will be selling its old Dallas operations center on Preston Road.

Custom builder Hawkins-Welwood is purchasing the State Farm operations center at 17301 Preston north of Campbell Road, which State Farm has occupied for more than 30 years.

Hawkins-Welwood will build a retail and residential community on the property located near Preston Trails Golf Club.

“We are pleased to add the State Farm property to our portfolio of luxury development properties in the Dallas area,” Hawkins-Welwood president John Hawkins said in a statement.

“While the property was not for sale, we began discussing a purchase with State Farm when the company first announced plans to occupy new, long-term space in the CityLine development in Richardson.”

Hawkins-Welwood says it will build retail space along Preston Road. And there will be sites for more than 100 luxury homes behind the retail on the west side of the property.

The Preston Road development will be completed in 2017.

Follow Steve Brown on Twitter at @SteveBrownDMN.

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