HFI Capital Management Moving to Dallas Design District

The new owners of a boutique office project in Dallas’ Design District are leaving their sought-after Old Parkland office space to move in, attracting several finance firms to join them.

The 10-story building known as The Capital Design District has reached about 60 percent occupancy after signing three new leases totaling nearly 25,000 square feet. The Dallas Business Journal reported that the deals add momentum for the roughly 125,000-square-foot property at 1333 Oak Lawn Avenue, which was acquired last year by HFI Capital Management and Quadrant Investment Properties.

The latest tenants — Beam Reach, Webs Creek Capital and Ninth Floor Partners — will all be on the building’s eighth floor. Beam Reach signed for 9,685 square feet, while Webs Creek Capital took 6,811 square feet and Ninth Floor Partners leased 8,002 square feet.

The ownership group is also becoming a tenant itself. Dallas-based HFI Capital Management plans to relocate from its offices at Old Parkland later this year into 23,135 square feet at The Capital.

The strategy is deliberate, according to HFI Vice President Daniel Hersh. Hersh told the outlet that the firm is aiming to cultivate a hub for emerging investment firms that doesn’t yet exist elsewhere in Dallas’ office market.

HFI is the family office of Ken Hersh, co-founder and former CEO of NGP Energy Capital Management and former head of the George W. Bush Presidential Center. The company teamed up with Dallas-based Quadrant Investment Properties last year to buy the building — previously known as Thirteen Thirty Three — in a partnership focused on long-term ownership, according to the publication.

Quadrant knows the project well, as the firm originally developed the building alongside Maryland-based Federal Capital Partners, completing it in 2024 with architecture by Dallas-based Merriman Anderson Architects.

Quadrant founder Chad Cook said the project was designed to bring Class A office space into the Design District while feeding off the neighborhood’s creative energy. The building still has about 50,000 square feet available.

The Capital includes more than 8,000 square feet of shared space, including a tenant lounge known as Capital Spot, an executive conference room and a fitness center with locker rooms and a cold plunge, according to the publication. The rooftop features a pickleball court.

Maroma, a Mexican seafood concept from the team for Muchacho’s, is expected to open on the ground floor this spring. The building’s Oak Lawn Avenue site places it within walking distance of the Virgin Hotels Dallas, the Hilton Anatole and the Katy Trail through the Hi Line Connector.— Eric Weilbacher