Trammell Crow adds historic heft to office-to-resi trend in Dallas

Eyeing conversion of north Dallas office building; could raze two adjacent structures

Trammell Crow’s Danny Queenan; 5550 Lyndon B. Johnson Fwy (Getty, Trammell Crow, Loopnet)
Trammell Crow’s Danny Queenan; 5550 Lyndon B. Johnson Fwy (Getty, Trammell Crow, Loopnet)

The office-to-resi craze in Dallas has attracted one of the city’s real estate titans.

Trammell Crow Company is eyeing a 10-story office building, at 5550 Lyndon B. Johnson Freeway, in North Dallas for a conversion into apartments, the Dallas Morning News reported

The big move on an office-to-residential conversion by the well-known Dallas firm marks a ramp-up of a trend pushed along in recent years by a beleaguered office sector, which has been hammered by remote-work trends since the pandemic. Dallas’ office vacancy rate hit 26 percent in the first quarter, while net absorption — the amount of space leased minus the amount of space vacated — stood at negative 1.1 million square feet.

Among Texas cities, Dallas appears to be at the forefront of the office-to-resi movement. Repurposed office buildings in Dallas  are expected to yield 2,000 multifamily units, according to Downtown Dallas Inc.

The bulk of office-to-resi projects are concentrated in the downtown area. Part of the 50-story Santander Tower, for instance, was converted into 228 apartments by an affiliate of Woods Capital. Firms such as Dallas-based Todd Interests are embarking on a similar path by adapting the Renaissance Tower and Energy Plaza.

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Trammel Crow could push beyond the office tower along the LBJ Freeway,  too. It is considering demolition of two adjacent six-story office buildings to make way for a pair of five-story apartment buildings. The parking garage on site would remain mostly intact, with the addition of screening being the only proposed change. 

Trammell Crow could invest upwards of $300 million on the redevelopment, which also calls for enhanced landscaping and walkways. Dallas City Council is set to review the project this week; a zoning change has been requested.

The property, valued at $10.75 million for tax purposes, is considered a prime candidate for a residential conversion.

—Quinn Donoghue 

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