Robert Bass, Larkspur Investing $850M in Central Fort Worth

An $850 million development from a group of some of Dallas-Fort Worth’s biggest developers could add office, residential and a hotel to Fort Worth’s Cultural District.

Westside Real Estate Investors, a partnership between Dallas-based Larkspur Capital and billionaire Robert Bass’ Keystone Group, have requested to rezone over 11 acres across five parcels near Cullen Street, the Dallas Business Journal reported.

They want a zoning change from industrial to “high-intensity mixed-use” to build up to 2 million square feet of residential, retail, office and hospitality developments. Details weren’t disclosed in the request, which the city’s zoning commission is expected to hear next week. Austin-based Michael Hsu Office of Architecture is listed as the project’s architect.

Part of the development is planned for the former Fort Worth Independent School District administration building at 100 North University Drive, which an LLC tied to Keystone bought for a little under $5 million in 2022. The other addresses are 2808 Tillar Street, 2901 Shotts Street, 2720 Cullen Street and 2801-2809 Cullen. The land is owned by Westside Real Estate Investors and Autobahn Realty Partners, the outlet reported.

The developers contend that the development would serve the future needs of fast-growing Fort Worth. The city’s population grew 5.3 percent between 2020 and 2023 to about 968,000, according to the Texas Demographics Center. The city’s urban core “is projected to grow exponentially by 2045,” the request states.

“New office space will accommodate continued growth of existing local businesses as well as companies moving to Fort Worth,” it states.

Downtown Fort Worth’s office vacancy sits at just 11.5 percent, well below that of downtown Dallas, where vacancy is over 26 percent. Office rent in downtown Fort Worth grew about 10 percent year-over-year in the first quarter. Much of that is because of low inventory, but that could be about to change.

This proposal would add to the list of high-profile developments planned near downtown Fort Worth.

For example, Nebraska-based Goldenrod Companies is planning two mixed-use projects in the city’s Cultural District, One University and the Van Zandt, which will add 218,000 square feet of office space to the market by the end of 2026.

—Rachel Stone