Redevelopment Plan for Dallas’ Tallest Tower Gets Key Approval

An ambitious plan to redevelop the city’s tallest tower won a key approval from the Dallas City Council Wednesday. Council members unanimously approved a $103 million payment from the Downtown Connection Tax Increment Financing (TIF) District for Dallas developers Mike Hoque and Mike Ablon’s vision to buy and redesign Main Street’s Bank of America Plaza. The body also expanded the boundaries of the financing district.

The vote came after roughly 12 minutes of public comment and limited discussion. The real estate duo, under 901 Main PAHG Partners LLC, announced plans last year to purchase the light-trimmed, 72-story tower from current owner Metropolis Investment Holdings, a Chicago-based real estate firm that manages assets for a German family investment group.

Project Overview

The newly formed company recently submitted a $409 million redevelopment road map to the city. The estimated purchase of the property is $172 million, and the firm must acquire the tower before the end of September 2026. Ablon pitched the plan at a joint meeting of the boards of the Downtown Connection Tax Increment Financing (TIF) District and Downtown Dallas Development Authority (DDDA) at the end of September.

The plan saw some tweaks following the TIF meeting. Ablon and the boards reached a compromise and an additional $5 million was made available to accommodate requested changes to the plan’s parking garage.

Key Features of the Redevelopment Plan

Plans for the new tower include:

• Reducing office space from 1.8 million square feet to 1.5 million square feet
• Converting and adding 280 new four-star or higher hotel rooms and hotel amenity space. The group has partnered with hospitality exec Dave Johnson of Horizon Capital.
• Building a new adjacent glass and steel structure to house a hotel lobby and ballroom
• A new 1,115-space parking garage on top of what is now a surface lot across the street
• Connecting the new structures with a skybridge across Main Street
• Street-level retail and restaurants

Support for the Project

Those who spoke in favor of the project at Wednesday’s meeting included Jennifer Scripps, president and CEO of Downtown Dallas Inc. “We believe that office conversion projects such as Bank of America Plaza address the critical need for the city to continue to advance downtown’s reinvention and to protect the ongoing viability of downtown as the economic anchor and essential employment center of our city,” she said.

Background of the Project

Hoque previously told The Dallas Morning News that the deal is the realization of a long-held desire. He’s wanted to be in Bank of America Plaza, and the best chance came several years ago when he approached Metropolis about the tower. The ownership group wasn’t interested in selling it then, so Hoque settled on building a hotel.

But Metropolis changed its tune at the beginning of 2023, shortly after Bank of America said it would relocate about 1,000 workers to a new office tower overlooking Klyde Warren Park. The bank is expected to keep employees at the plaza tower through 2027.

Agreement Details

As part of the agreement, the group must invest nearly $395 million and finish construction by the end of September 2032. The project must also hit certain minimum benchmarks for office, retail, hotel and other space.

Conclusion

The approval of the redevelopment plan for the Bank of America Plaza is a significant step forward for the city of Dallas. The project promises to bring new life to the downtown area, with a mix of office, hotel, and retail space. With the support of the city council and the downtown community, the project is poised to become a reality in the coming years.

Frequently Asked Questions

Here are some frequently asked questions about the redevelopment plan for the Bank of America Plaza:

• Q: What is the total cost of the redevelopment project?
  A: The total cost of the project is estimated to be $409 million.
• Q: How much office space will be reduced in the tower?
  A: The office space will be reduced from 1.8 million square feet to 1.5 million square feet.
• Q: How many new hotel rooms will be added to the tower?
  A: 280 new four-star or higher hotel rooms will be added to the tower.
• Q: What is the expected completion date of the project?
  A: The project is expected to be completed by the end of September 2032.