Costco Wholesale Corp. plans to overhaul an office building and parking garage beside one of its largest stores in the city.
The bulk retail chain has filed four work permits for construction at the North Central Plaza I tower and adjacent parking garage located at 12655 N. Central Expressway just south of I-635.
Costco purchased the over four-decade-old office tower in 2023 with unclear intentions. While at least one broker speculated that the company might tear down the existing 10-story structure, it appears it is moving forward with extensive renovations instead.
According to the work permit filings with the Texas Department of Licensing and Regulation, MG2 Architecture Corp. and Costco have filed plans for nearly $13 million in renovations across the almost 200,000-square-foot tower and 590-spot parking garage.
- Roughly $7.7 million will be allocated to tenant improvements to over 34,000 square feet of the office tower.
- $3.6 million will be set aside for maintenance, upgrades, and repairs.
- $1.5 million will go towards garage maintenance and security enhancements.
- $80,000 will be used to construct a pedestrian path.
The office building is currently about 71% leased, according to CoStar News.
Last year, The Dallas Express reported that Hartman SPE LLC, a subsidiary of Houston-based Silver Star Properties REIT Inc., filed for bankruptcy. The filing was initiated to help the company cover its debt obligations. As part of the filing, SPE LLC initiated a sale of some of its assets, including North Central Plaza I. Costo acquired the property for $14.25 million, slightly above the market value listed by the Dallas Central Appraisal District.
Costco has acquired multiple properties recently, including a similar building in Oklahoma City and another smaller property in Springfield, Virginia.
The company’s share price is up nearly 10% year to date, slightly higher than the S&P 500 average.
