DALLAS — Read this story and more North Texas business news from our partners at the Dallas Business Journal
Investors now have the chance to buy the majority of a Dallas icon, which could open up the concrete building to partial conversion into apartments.
JLL Capital Markets has listed a condominium interest in 22 stories of downtown Dallas' 33-story One Main Place for sale. The listing includes the ground-floor retail but does not include the hotel. Andrew Levy and Todd Savage of JLL are marketing the property.
The sale would include 652,560 square feet of office space that is 36% leased, the listing says, but it's unclear whether this figure factors in the retail space. The total building is valued at more than $68 million by Dallas Central Appraisal District, which pegs the office and retail portion at about $17 million.
The building at 1201 Main St. was built in 1968 and renovated in 2015. It is broken up between two condominium interests — one for the office floors and another for the Westin Hotel on the top 10 floors and most of the bottom floors — according to JLL. Global architecture firm Skidmore Owings & Merrill designed the iconic building.
JLL presents the listing as an opportunity to convert up to 10 floors of office space, or 234,000 square feet, to residential — which would bring the occupancy of the remaining office space to 63%.
New Orleans-based KFK Group bought the downtown tower for an undisclosed price in 2014 after it was repeatedly posted for foreclosure. It then pursued renovations and the Westin hotel opened in the building in 2016. Attempts to reach the current owner and brokers were unsuccessful.
Local real estate brokers, developers and investors have been looking for ways to repurpose older office buildings with higher-than-desired vacancy rates.
Trammell Crow Center has proven it can still win over tenants after major renovations a few years ago. Russell Reynolds Associates Inc., a global executive search firm based in New York City, moved its offices to the tower in March.
Residential conversions have also been popular downtown and in nearby areas in recent years. Thistle Creek Capital, the lender that bought the 211 N. Ervay St. tower downtown out of foreclosure earlier this year, has said it still wants to continue redevelopment of the building into apartments or hotel rooms as was previously planned. In December, Irving-based Sava Holdings bought the 12-story Stemmons Towers complex along Interstate 35E to turn the buildings from offices into apartments.
