Investors eyeing the Dallas real estate market now have the opportunity to acquire a significant portion of a Dallas landmark, potentially paving the way for a transformative residential conversion.

JLL Capital Markets has recently listed a condominium interest in 22 stories of downtown Dallas’ renowned 33-story One Main Place for sale. This offering includes the ground-floor retail spaces but excludes the hotel component. Spearheading the marketing efforts for this property are Andrew Levy and Todd Savage of JLL.

Property Details and Valuation

The offering encompasses 652,560 square feet of office space, with a current occupancy rate of 36%, as per the listing. However, clarification is needed regarding whether this figure incorporates the retail portion. According to the Dallas Central Appraisal District, the total value of the building exceeds $68 million, with the office and retail segment valued at approximately $17 million.

One Main Place, located at 1201 Main St., stands as a prominent fixture of the Dallas skyline since its construction in 1968, undergoing significant renovations in 2015. The building comprises two condominium interests, one dedicated to the office floors and the other housing the Westin Hotel on the upper and lower levels, managed by JLL.

Conversion Potential

JLL is presenting this listing as an enticing opportunity for prospective buyers to consider converting up to 10 floors, totaling 234,000 square feet, into residential units. Such a conversion could potentially increase the occupancy of the remaining office space to 63%.

Previous Ownership and Renovation Efforts

In 2014, the downtown tower was acquired by New Orleans-based KFK Group under undisclosed terms, rescuing it from foreclosure. Following the acquisition, substantial renovations were undertaken, culminating in the opening of the Westin hotel within the premises in 2016. Despite attempts to contact the current owner and brokers, communications remained unsuccessful.

Market Trends and Redevelopment Initiatives

The Dallas real estate landscape has witnessed a growing interest in repurposing older office buildings, especially those grappling with higher vacancy rates. Notably, Trammell Crow Center’s successful tenant acquisitions post-major renovations serve as a testament to the viability of such initiatives. Russell Reynolds Associates Inc., a global executive search firm, relocated its headquarters to the tower earlier this year.

Residential conversions have also gained traction, with developers and investors exploring opportunities in downtown and adjacent areas. Thistle Creek Capital, which acquired the 211 N. Ervay St. tower through foreclosure, expresses continued interest in redevelopment, aiming to convert it into apartments or a hotel. Similarly, Sava Holdings, based in Irving, recently acquired the Stemmons Towers complex along Interstate 35E with plans to convert the offices into residential units.

Conclusion: A Promising Prospect in Dallas Real Estate

The listing of a significant portion of One Main Place presents a promising opportunity for investors to delve into the Dallas real estate market. With the potential for residential conversion and strategic location within downtown Dallas, this offering aligns with the ongoing trend of revitalizing and repurposing aging office buildings. As interest in urban living continues to grow, such initiatives contribute to the vibrancy and sustainability of Dallas’s urban landscape.

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