Will Hillwood Urban Sell Dallas’ Victory Commons One

Hillwood Urban is mulling over “monetization solutions” for Victory Commons One, its 15-story high-rise in the middle of Dallas’ financial district.

The Dallas Business Journal reported that JLL senior managing director Michael McDonald said that they’ve been hired by Hillwood Urban to advise on potential refinancing or simply finding a new owner or partner for the office building at 2601 Victory Avenue. Victory Commons One is 93 percent leased across its 364,428 square feet of space, and was developed by Hillwood and San Antonio-based Affinius Capital. McDonald said the property was recently listed.

Dallas-based Hillwood earmarked $20 million to renovate 100,000 square feet of Victory Commons One to accommodate Scotiabank, one of Canada’s largest banks. Scotiabank is also investing $60 million into the building and will move in when the renovations are complete in January 2027.

The building, which opened in 2022, is dripping with amenities: a 4,000-square-foot private lounge, a 5,000-square-foot sky garden with downtown views and a fitness center are all major tenant perks. It’s walking distance from Victory Place Apartments, and tenants can still catch Mavericks and Stars games at the American Airlines Center, though both professional sports teams are planning to move out of the downtown area by the time their leases are up in 2031.

Downtown Dallas’s problems are well documented, but the building could be insulated because of its banking tenant and its proximity to Y’all Street, the burgeoning financial district in Uptown. The newly minted Texas Stock Exchange is coming to Uptown, and the area is looking internationally for new financial tenants.

In 2024, there was $1 billion in the pipeline for Uptown developments, including areas for Deloitte, Goldman Sachs, and Bank of America. Morgan Stanley is reportedly planning a $700 million investment in an Uptown Tower, and just secured tax incentives for the potential redevelopment at 1445 Ross Avenue.

— Hunter Cooke