D&A Companies to move forward on office redevelopment

October 2021
By Joshua Mann, Birmingham Business Journal
D&A Companies is looking to redevelop 2222 Arlington into a new office building. The structure, which formerly was the headquarters of Bayer Properties, has sat vacant since the end of 2020.

A New York-based development company is moving ahead on the redevelopment of the former headquarters of Bayer Properties near Southside.

D&A has secured Austin-based Shipshape as an anchor tenant. Once it moves into the space, Shipshape will have a dual-headquarters setup; one in Birmingham and one in Austin.

“It’s our network operations center; we want our home assistants close to our customers,” said Shipshape CEO Alexander Linn. “We want hubs in the communities we serve, so we can recruit people who know our customers.”

D&A also has another anchor tenant in Birmingham-based Atlas Senior Living. With

both tenants secure, the developer is looking to close on its construction loan in November, and work should begin at the site near the start of 2022, said Evan Watts, partner and co-founder of D&A.

D&A plans to renovate the entire building, keeping only the basic structural elements; things like the slabs, columns and steel trusses, said JJ McCormick, partner and director of construction for the company. That’s important from a timing perspective, because it means the project is less exposed to the fluctuating prices of heavy construction materials right now, said Evan Watts, partner and co-founder of D&A.

“We were fortunate to be able to utilize the existing core and structure of the building,” Watts said. “The slabs, the infrastructure, the site work — all of the things that have experienced the most costly inflationary rise, like steel and concrete, we’ve got in our project already baked in.”

The developer is extending the windows to be floor-to-ceiling and wrap around the entire structure. It’s also building two lobbies, which means they can be individually branded for different tenants.

“It can be a statement entrance for multiple tenants,” McCormick said.

The whole structure will be about 55,000 square feet. D&A plans to spend about $20 million on the redevelopment. It acquired the property for $5 million back in March.

The property was vacated by its prior tenants at the end of 2020. It was previously the

headquarters of Bayer Properties, which was one of the initial developers that worked on the building in the 1970s.

Long-term plans

Part of the site will eventually also house a residential project, which is set to come in a future phase after the company completes the initial office construction.

“It’s part of what we’re calling the larger redevelopment of this campus. It will be a separate project, but it’s a related project that will share certain amenities,” Watts said.

The project has been through some changes over the course of the Covid-19 pandemic.

Back in 2019, the developer was looking at building a boutique hotel and a spa and wellness concept on the mixed-use campus. But the project pivoted in 2020 to focus on an office and high-end condominium development.

Now, D&A is confident about its timing. Many companies have made only short extensions to leases in the past year as they face choices about what the future of office work looks like, McCormick said.

“Now the future is coming into more focus for these folks,” McCormick said. “The nature of office space in general has changed. To respond to that, the physical space needs to change, too.”

D&A is looking to offer the flexibility to meet those demands to its tenants with the new building. Already, the pre-leased tenants have set aside a lot of their space for recreational and collaborative uses, McCormick said.

“We can work with tenants who are looking to change the way their space functions for them,” McCormick said. “I think it’s a great opportunity.”

D&A is partnering with Birmingham-based FiveStone Group, which is a partner and investor in the project.

Read moreDownloadSee project

More news

Full-service NYC-style condos slated for Birmingham
January 2024
A new boutique condo development in Birmingham’s Redmont Park that will offer a bit of Upper East Side living — albeit, with a slightly lower price tag — is now in the presale stage.
Employees seek home amenities while at work
November 2023
[T]he 55,000-square-foot building at 2222 Arlington is a good example of the changes taking place within the CRE world. Constructed in 1976, the building’s former design was “labyrinthian,” Watts says, with limited natural light and “cubicle after cubicle after cubicle.”
Not the Only Player: Future-Focused Collaboration
November 2022
When Desai founded D&A Companies in 2018, it was an opportunity to do a hybrid of real estate development and architectural design while leveraging the talent, skills, and cohesion of his longtime team of colleagues and friends.
Midtown office market boasting high occupancy rates
September 2022
The Midtown office sector continues to see high occupancy rates and one of the highest rental rates per square foot in the greater Birmingham area.
Sneak Chic Peek: Preview The Tramont and Meet the Visionary Behind It
September 2022
As one part of the D&A Companies design-and-build team behind the landmark Tramont project coming to the historic Redmont-Highland Park neighborhood, Watts has a vision for the next chapter of elevated residential living.
Kartik Desai's Zen Hamptons Home Is Full of Cost-Cutting Secrets
July 2022
From the road, it looked like an abandoned mobile home. But architect and designer Kartik Desai of D&A Companies and his husband Zane Philstrom, who is the costume and scenery designer for Company XIV in Brooklyn, had a hunch that there was more to it.
New major tenant named for 2222 Arlington Avenue office building
June 2022
Gresham Smith joins Austin, Texas-based tech company Shipshape and Atlas Senior Living as anchor tenants.
Birmingham developer honed in on alternative materials for local projects
June 2022
The demand and need for completed buildings have caused developers to seek out alternatives to get the jobs done in the most effective way.
Women Leaders Of Real Estate: Van-Tuong Nguyen Of D&A Companies On The 5 Things You Need To Succeed In The Real Estate Industry
June 2022
As a part of my series about strong women leaders of the Real Estate industry, I had the pleasure of interviewing Van-Tuong Nguyen.
Real Estate Matters: Kartik Desai, Evan Watts & James McCormick
February 2022
Kartik Desai, Evan Watts & James McCormick of D&A Companies join the podcast to discuss recent projects in Birmingham.
Mountain Brook seen as ‘huge draw’ for potential residents at development near English Village
May 2022
The charming villages of Mountain Brook promise to be “a huge draw” to potential residents at a new luxury residential development planned for Highland Park in Birmingham.
Developers say The Tramont in Highland Park will draw people seeking ‘urban lifestyle’
May 2022
A lot of people want to live in the city of Birmingham, according to one of the developers behind a new luxury condominium project, The Tramont, which is being planned for Highland Park.
The Tramont, a Collection of Birmingham Residences that See Life Beyond
April 2022
Located at 1236 22nd Street South, The Tramont is a boutique collection of luxury condominiums meticulously designed to reflect the craftsmanship and beauty of Birmingham’s architectural heritage.
Condos Return to the Real Estate Spotlight
April 2022
Good news for homeowners planning to downsize, young people looking to jump into the housing market for the first time, or anyone looking for shared amenities and ease of building maintenance: Condos are back.
Luxury condos coming soon to the Highland-Redmont Park Districts
November 2021
Located in the historic Highland-Redmont Park districts, The Tramont, part of D&A Companies, will be the neighborhood’s newest and most elegant condos.
$20M 2222 Arlington office building Redevelopment in Birmingham
November 2021
The New-York based D&A Companies is moving ahead with its plans to break ground on the new office building sometime this month.
D&A Companies to build condo project near Southside
November 2021
D&A Companies plans to make further additions to a mixed use campus it’s planning near Southside.
Shipshape to anchor building at 2222 Arlington Ave., CEO talks plans for new office
November 2021
A former Techstars company with a Birmingham presence is expanding its commitment to the city.
Austin-based Shipshape to move into renovated building in Birmingham
October 2021
2222 Arlington now has two anchor tenants
Big development proposed in Gardiner
September 2021
A 130-unit Traditional Neighborhood Development called Fall Park received enthusiastic support from the Gardiner Town Board.
Former Bayer Properties HQ to get a major facelift, secures new anchor tenant
March 2021
Remember in the fall of 2019 a red balloon floating on Birmingham’s Southside near Sirote Permutt’s Crescent Building?
Before & After: A Classic NYC Loft Ditches Its ’90s Look for Refined Minimalism
July 2020
D&A, teaming up with RARARA, reimagines a light-filled Chelsea loft.
Reveal: Indiana Technology HQ
D&A's vision for medical tech space: light filled, dual mechanical and manual ventilation, sun shades and ample greenspace.
Hitting the "Magic City": Redmont Park
D&A partners with a veteran Birmingham developer on a mixed-use hotel and residential project in upscale Redmont Park.
© 2024 D&A Development Partners LLC. All rights reserved.