Sycamore Development has announced ambitious plans to renovate the iconic Magnolia Building in downtown Dallas, transforming the 29-story landmark into a mixed-use facility that combines a hotel and residential apartments.
The project will involve renovating the building at 1401 Commerce St. and is expected to cost around $200 million, encompassing the cost of acquiring the property.
Last week, the Dallas-based firm provided updates concerning the project in a formal filing with the Texas Department of Licensing and Regulation.
Managing member of Sycamore Strategies, Jess Krochtengel, expressed enthusiasm about revitalizing the historic hotel, which has been a defining feature of the Dallas skyline for decades.
In a significant shift, the renovation will reduce the number of hotel rooms from over 320 to 160, while also introducing 130 mixed-income apartments to the property.
The apartments will comprise 39 studio units, 52 one-bedroom units, and 39 two-bedroom units. Of these, only 59 units will not have income restrictions per city regulations.
The design of the renovated building will allocate the first and second floors for hotel lobby and amenities, while the third floor will host the apartment lobby and amenities.
Residential units will occupy floors four through 16, with the hotel rooms situated on floors 17 and above. Additionally, separate elevator banks for the hotel and apartments will enhance privacy and accessibility.
Construction work is anticipated to begin in February 2026, with completion projected for February 2028. The firm estimates that approximately $90 million will be dedicated to construction efforts.
To support the development, Sycamore Development will receive $20 million in housing tax credits over the next decade from the Texas Department of Housing and Community Affairs. The initiative will also benefit from federal and state historic tax credits.
The developer is currently seeking additional incentives from the city and funding from the local tax increment financing district.
Currently, Sycamore Development is under contract to purchase the Magnolia Building from NewcrestImage, a Grapevine-based investment firm.
NewcrestImage acquired the building in 2021 and had previously announced a $200 million overhaul that involved a three-story addition and potential rebranding as a Waldorf Astoria, though that plan did not materialize.
First opened in 1922, the Magnolia Building was the tallest skyscraper west of the Mississippi at its completion, designed by British architect Sir Alfred Bossom, who also created the renowned Maple Terrace apartments in Uptown Dallas.
Originally serving as the headquarters for Magnolia Petroleum Company, the building symbolized the economic growth of Dallas in the early 20th century.
A notable feature, the 11-foot-tall, red-neon-outlined Pegasus sign, was installed in 1934, further establishing the Magnolia Building as an integral part of the city’s architecture.
“This redevelopment gives us the 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,” Krochtengel stated.
He also emphasized the intention to create a vibrant hub in downtown Dallas, one that reflects the area’s energy and contributes positively to its future.
image source from：dallasnews
