NexPoint Diversified Real Estate Trust is advancing its $445 million plan to transform Dallas’ Cityplace Tower into a large mixed‑use development.
During an investor call on Tuesday, the firm reported significant progress on financing, design and hotel logistics for repositioning the 42‑story, 560‑foot tower along U.S. 75, the Dallas Business Journal reported. NexPoint, based in Dallas, acquired the property in 2018.
The redevelopment gained momentum after Neiman Marcus announced earlier this year that it would vacate its headquarters in the building after only two years. NexPoint ’s plan calls for converting portions of the existing office tower into residential units and hotel rooms, while adding eight six‑story apartment buildings across the largely underdeveloped land surrounding 2711 North Haskell Avenue.
The redevelopment is structured in four phases, with the first major component — known as “The Apron” — focused on building 465 apartments on 5.6 acres adjacent to the tower.
NexPoint Executive Vice President Matt McGraner said the company has received “accretive financing proposals” for The Apron and expects to select a lender within 30 to 60 days.
Groundbreaking is anticipated within six to nine months.
On the hospitality side, NexPoint is working with Marriott International, which has proposed two lifestyle hotel brands aimed at complementing the project’s upscale residences. Marriott previously pitched a business‑oriented hotel concept, but has since shifted direction to better align with the project. NexPoint also worked with the company on the Marriott Dallas Uptown property.
McGraner also discussed broader multifamily market dynamics, noting that the national supply cycle is peaking. CoStar projects annual completions across the U.S. of 695,000 units — about 3.5 percent of inventory — over the next year, followed by sharp declines: a 27 percent year‑over‑year drop in 2026, and a further 20 percent decline in 2027. This slowdown is expected to push the market from today’s competitive lease‑up environment into a supply‑constrained period characterized by renewed rent growth.
NexPoint believes the timing will prove advantageous for Cityplace, positioning the project to have its new units completed as national supply tightens. The building, built in 1988 and originally envisioned as part of a two‑tower complex connected by a sky bridge, remains the tallest building in Dallas outside the Downtown core.
— Joel Russell