Introduction to the Project
A Dallas firm, Sycamore Development, plans to give a historic downtown hotel new life in a first-of-its-kind project. The firm plans to renovate the 29-story Magnolia Building, placing hotel rooms and for-rent, mixed-income apartments within the Dallas landmark. The estimated cost of the project is $200 million, which includes the cost of acquiring the property.
Project Details
New details about the project were revealed in a filing with the Texas Department of Licensing and Regulation. The firm offered additional information regarding the timeline and project scope. Sycamore Development plans to cut the room count of Magnolia’s hotel operations from more than 320 to 160. The Dallas developer will also add 130 mixed-income apartments to the property. The apartments will include 39 studio, 52 one-bedroom, and 39 two-bedroom units. Only 59 of the 130 apartments will not be income-restricted, according to a city resolution.
A rendering of new plans for the Magnolia
Courtesy of Sycamore Development
Layout and Amenities
The hotel lobby and amenities will be located on the first and second floors. The apartment amenities and lobby will occupy the third floor. Floors four through 16 will be apartments. Floors 17 and above will be the hotel rooms. The elevator banks for the hotel and apartments will be separate.
Construction and Timeline
Other work planned at the property includes a new main lobby and guestroom tower. The firm estimates construction work will cost around $90 million. Work is expected to begin in February 2026 and be completed by February 2028.
Funding and Incentives
Sycamore Development will receive $20 million in Texas Department of Housing and Community Affairs housing tax credits over the next 10 years for the project. The firm also has state and federal historic tax credits. Sycamore also plans to seek city incentives and funding from the tax increment financing district.
History of the Magnolia Building
The Magnolia Building was the tallest skyscraper west of the Mississippi when it opened in 1922. The high-rise was designed by British architect Sir Alfred Bossom, who also designed Uptown’s landmark Maple Terrace apartments. The British lord designed the property as a headquarters for Magnolia Petroleum Company, and it became a symbol of Dallas’ booming economy in the early 20th century. The 11-foot-tall, red-neon-outlined Pegasus sign was added in 1934 — cementing its position in the city’s skyline.
The exterior of the Magnolia Hotel at 1401 Commerce St. in downtown Dallas on Tuesday, Aug. 19, 2025.
Juan Figueroa / Staff Photographer
Conclusion
The redevelopment of the Magnolia Building is a unique opportunity to honor the building’s rich history while reimagining it as a place that welcomes a broader community with mixed-income housing and hospitality. The project is expected to create a vibrant hub that reflects the energy of downtown Dallas and strengthens its future.
FAQs
Q: What is the estimated cost of the project?
A: The estimated cost of the project is $200 million, which includes the cost of acquiring the property.
Q: How many hotel rooms and apartments will be included in the project?
A: The project will include 160 hotel rooms and 130 mixed-income apartments.
Q: What is the timeline for the project?
A: Work is expected to begin in February 2026 and be completed by February 2028.
Q: What incentives and funding will the project receive?
A: The project will receive $20 million in Texas Department of Housing and Community Affairs housing tax credits over the next 10 years, as well as state and federal historic tax credits.
Q: What is the history of the Magnolia Building?
A: The Magnolia Building was the tallest skyscraper west of the Mississippi when it opened in 1922 and was designed by British architect Sir Alfred Bossom as a headquarters for Magnolia Petroleum Company.
