Far North Dallas Office Tower to be Auctioned
A mostly-empty office tower on what’s being touted as one of Far North Dallas’ largest redevelopment sites will head to auction in the coming weeks.
Bidding for Preston Plaza, a 10-story office tower at 17950 Preston Road, will take place Nov. 10-12 with bids starting at $2.25 million.
Commercial real estate firm Cushman & Wakefield is serving as the auction adviser. The nearly 260,000-square-foot building is 35% leased. The site offers multiple redevelopment opportunities.
Preston Plaza Overview
The nearly 6.3-acre parcel has “strategic in-place zoning to minimize entitlement risk” and can be redeveloped for different uses. The property’s structured parking garage could support current and future uses such as multifamily, hotel or retail, according to the listing.
“Preston Plaza offers an opportunity for a new buyer to lease up the property at a reset basis. Surrounding, comparable buildings are (roughly 90%) leased and there are significant barriers to entry for new office development today,” Cushman & Wakefield Director Matt Murphy said in a statement. “There is additional optionality as a potential multifamily redevelopment in one of Dallas’s top residential corridors, leveraging the recent Senate Bill 840 that went into effect on Sept. 1.”
Property History
The North Dallas tower was built in the late 1980s and renovated in 2015, according to the listing. Current tenants include Republic Title, Veritex Bank and Texas Health Surgery Center.
The Collin County Central Appraisal District most recently valued the property at $35 million for tax purposes. Such valuations are typically below market value.
The auction comes after years of financial struggles and tenant exodus.
The property was purchased in an April foreclosure auction for $13.85 million by JPMBD 2017 C7 17950 Preston Road LLC, according to Collin County records. An address for the corporation matches real estate credit service firm K-Star Asset Management.
Houston-based Tanglewood Property Group previously owned the property before it fell into receivership in 2024.
Current Market Trends
The tower is the latest Dallas office property to head to auction. The 36-floor Harwood Center, at 1999 Bryan St. in downtown Dallas, was up for auction earlier this month. Bids for the property are being evaluated.
Vacancies in Dallas’ office market recently saw their first drop in five years, driven by Uptown’s strong performance. Nearly three-quarters of the metropolitan area’s 2.7-million-square-foot construction pipeline is in Uptown as it becomes the nucleus of Dallas’ financial industry.
The area continues to siphon business away from markets like downtown.
The Fortune 500 company is one of Dallas’ largest employers, and it is weighing its future in downtown Dallas.
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Conclusion
The upcoming auction of Preston Plaza presents a unique opportunity for investors and developers to acquire a significant property in Far North Dallas. With its strategic location, existing infrastructure, and potential for redevelopment, this property has the potential to be transformed into a thriving hub of commercial activity.
Frequently Asked Questions
Q: What is the location of Preston Plaza?
A: Preston Plaza is located at 17950 Preston Road in Far North Dallas.
Q: What is the size of the property?
A: The property consists of a 10-story office tower with approximately 260,000 square feet of space, situated on a 6.3-acre parcel of land.
Q: What is the current occupancy rate of the property?
A: The property is currently 35% leased.
Q: What are the potential redevelopment opportunities for the property?
A: The property has the potential to be redeveloped for various uses, including multifamily, hotel, or retail, due to its strategic in-place zoning and existing structured parking garage.
