Irving has given a green light to the lease sale of its centerpiece Toyota Music Factory entertainment and restaurant complex.
The $180 million Music Factory opened in 2018 in Las Colinas with a 4,000-seat indoor concert hall, an 8,000-seat outdoor amphitheater, 206,756 square feet of retail and restaurant space, and a 100,000-square-foot office building. There’s also a movie theater.
Developed by North Carolina-based Ark Group with millions of dollars in incentives from the city, the mixed-use project on Carpenter Freeway was part of an ambitious plan to energize the area. The Music Factory is next door to the city’s new Westin Hotel and convention center.
After a slow start, the project has gained a major office tenant — health care staffing agency Curative Talent — and increased restaurant leasing.
Last week, Irving City Council OK’d transfer of ownership of the Music Factory lease from developer Ark Group to New York-based investor Brookfield Properties.
“The City Council hereby consents to the assignment of the entertainment center lease and the economic development incentive agreement from ARK Group of Irving Inc. to Music Factory Portfolio LP, upon the closing of sale,” Irving officials said. Music Factory Portfolio is the company Brookfield Properties formed to acquire the Irving property.
What’s actually selling is the long-term leasehold on the development. Irving will retain ownership of the underlying property.
Executives with Ark Group and Brookfield have not responded to requests for details about the pending transaction.
Brookfield is one of North America’s biggest real estate investors and developers. The property firm has more than 50 million square feet of projects under development worldwide.
In North Texas, Brookfield’s holdings include more than two dozen properties, including Frisco’s Stonebriar Centre mall, downtown Dallas apartments and millions of square feet of industrial space.
Note: This story was updated Monday to clarify that what’s selling is the long-term leasehold on the development.