One of Dallas' biggest developers is retooling its identity.

Koll Development Co., which will now be known as KDC, is shifting its focus to buying properties.

The commercial builder anticipates that more than half of its business will be purchasing distressed properties and making investments in commercial real estate.

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Steve Van Amburgh

"I don't think you are going to see a lot of new development," said KDC chief executive Steve Van Amburgh.

"I can't imagine who would underwrite it right now."

KDC is building about $600 million in projects across the country, including a new headquarters for Blue Cross Blue Shield of Texas in Richardson.

But with the recession and credit crunch, the big developer expects fewer groundbreakings in the year ahead.

"We have been about 80 percent development," Van Amburgh said. "We are a company that has significant capital.

"But we realize that development will probably be 30 to 40 percent of our revenue."

Instead, KDC will look for properties at bargain prices and troubled deals it can turn around.

KDC plans to add acquisition specialists to its operations and open offices in Chicago and the Northeast.

Two of the areas it plans to focus on are medical developments and the sale and lease-back of corporate facilities.

"We are in a great position to take advantage of today's market," Van Amburgh said.

During the last three years, KDC has begun making acquisitions – including buying three buildings from Electronic Data Systems in Plano.

And in 2008, the company formed partnerships with Harbert Management Corp., E2M Partners and Sammons Enterprises to build and invest in properties.

The company also launched a green office-building program in markets across the country.

KDC has offices in Atlanta; Charlotte, N.C.; and Detroit.

The company was originally an affiliate of California-based Koll Cos. but has been independent since 2004.

Van Amburgh said not to look for KDC to make a bunch of quick acquisitions.

"We don't really anticipate any big transactions for at least six months," he said.

"It's a little too early."

And, he said, it's hard to evaluate market prices for distressed real estate "since nothing has sold yet."