The Crescent

Dallas, TX

Overview

  • Parking income increased significantly, creating approximately $30 million of additional value.
  • The property sold in early 2021 for the highest square foot price in Dallas history.
  • The property achieved the highest net parking income in its history in June 2021, despite COVID-19 negatively impacting parking demand.
Baseline 2018 Actual 2019 Actual 2020 Projected 2021 Projected 2025
Net Parking Revenue $3,702 $3,808 $3,703 $5,099 $6,598
Operating Expenses ($928) ($770) ($660) ($616) ($703)
Net Parking Income $2,774 $3,038 $3,043 $4,483 $5,895
Cash Flow Increase $264 $269 $1,709 $3,121
Valuation Increase $4,800 $4,891 $31,073 $56,745

Property Description

The Crescent is a landmark office, hotel, and retail complex located in the Uptown submarket of Dallas, TX. The property was completed in 1986 and is considered to be one of the top properties in Dallas.

  • Office Buildings – 1.13 million square feet of Class “A+” office space located in three towers
  • The Atrium – A four-story, 165,000 square foot retail and office building
  • Hotel Crescent Court – A 5-star hotel with 220 guest rooms, event space, and restaurants

Parking Advisors Scope

Parking Advisors was engaged by the property owner over a period of two years and multiple phases, including:

  • Analysis of operations and strategy development
  • Parking operator re-bid and contract negotiation
  • Asset management services and strategy implementation
  • Financial modeling and disposition support

Financial Impact

Parking Advisors significantly improved financial performance and customer service levels. Notably, the property generated its highest cash flow in the property’s history in June 2020, at the height of the COVID-19 pandemic.

Revenue Enhancements

  • Increased parking rates to align with the submarket
  • Enforced tenant validation processes
  • Corrected hotel guest billing processes
  • Identified and enforced tenant lease “must take” language

Operating Cost Reductions

  • Reduced operator contract costs
  • Right-sized garage staffing levels
  • Reduced technology R&M costs