DALLAS-Keeping to its mission to acquire "highly opportunistic and value-add investments" on behalf of its Hangover Opportunity Fund LLC, SkyWalker Property Partners acquired the 110-year-old Hughes Brothers Candy Factory on Dallas' south side. The Arlington, TX buyer negotiated a quick, off-market deal with seller Frieda Bosh, mother of Miami Heat basketball star Chris Bosh, for the asset.
SkyWalker plans to invest $3.2 million in the building at 1401 S. Ervay to convert the former candy factory into residential units. The five-story building is situated in the Cedars, one of the city's oldest neighborhoods, an area currently is going through regentrification.
"We just love the area, its growth and momentum," says Clint Holland, acquisitions director for SkyWalker Property. "It's got phenomenal views of Downtown Dallas that will always be unobstructed."
The building, or rather, the building's owner, also has somewhat of a tarnished history. During June 2013, the City of Dallas filed a lawsuit against Frieda Bosh and son Joel, to shut down a proposed party that would have included everything from DJs on all five floors, to a lot of booze. The reason for the injunction against the ownership was that the property, which has been shuttered, was considered unsafe for any kind of use because of various health and safety violations. Furthermore, the location has been known to be the scene of other parties and even violence. According to the Dallas Morning News, Joel Bosch was beaten up at the location during July 2012.
The Dallas Morning News also noted that Frieda Bosh acquired the now-shuttered asset in 2008 and attempted to turn it into a storage warehouse and office showroom. It failed inspection twice, however.
At one time, the building housed Hughes Brothers Candy Factory; the original owner's name, Hughes, is still embedded above the building's main entrance. The factory was built in 1902 for $50,000. The Cedars had transitioned to light industrial uses during the 1920s and in 1940, following Hughes Brothers' demise from the Great Depression, Gulf Cone Products bought the building.
Ice cream cones were produced at the site until 1997 when Illinois-based Sweetheart Cup Co. sold its bakery line to Ace Baking Co. of Green Bay, WI, which filed Chapter 11 bankruptcy three years later. Keebler Co. acquired the bankrupt firm's assets in March 2000, including the factory.
Theron Bryant, principal for SCM Real Estate Services, a SkyWalker Property affiliate, brokered the off-market deal.
Despite years of dormancy, the building is structurally sound, but its mechanical system, wiring and plumbing must be replaced to bring it up to code. The interior is in shell condition, with timber framing that's as aesthetically appealing as it is sturdy.
"It's a value-add play. We believe we bought this at a discount to market value and replacement cost," Holland says. "Our goal will be to create the best value for the property and the city."
Representatives from SkyWalker Property were not immediately available for comment.
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