The owner of a downtown Dallas tower scored a $155 million loan extension, a win against pessimism about the nation’s office market.
Commercial real estate firm HPI Real Estate Services & Investments finalized the loan for the 1.1 million-square-foot Ross Tower, at 500 North Akard Street, according to a news release. The lender wasn’t identified.
Built in 1982, it rises 45 stories in downtown Dallas’ Arts District. In 2023, Dallas Central Appraisal District valued the property at nearly $114 million.
The loan extension will give HPI the funds necessary to pursue leasing, the firm said in a statement.
About 319,000 square feet of Ross Tower are available, according to HPI’s website. That’s a vacancy rate of about 29 percent, which tracks with the third-quarter average for Dallas-Fort Worth, according to Avison Young.
“Tenants are leaving other well-known projects in downtown Dallas that are adding multi-family units to absorb excess space,” said HPI Dallas managing partner Hunter Lee. “We are seeing a significant uptick in tour activity from companies seeking a more stable, well-amenitized environment for their employees.”
Ross Tower’s largest tenant is commercial law firm Munsch Hardt, which occupies 77,000 square feet.
Between the popularization of hybrid work spurred by the pandemic and the unfriendly interest rate environment, office space has fallen out of favor with investors. Developers have been left strapped for cash, especially as rate caps expire for those who purchased at high prices.
Since purchasing Ross Tower in 2015, HPI has spent $20 million upgrading the property. The building features valet parking, a food hall, Dakota’s Steakhouse and an on-site Starbucks. The tower is LEED Gold Certified.
Austin-based HPI also has offices in Dallas, Houston and San Antonio. HPI owns properties throughout the Metroplex and handles leasing for Old Parkland Expansion in Uptown Dallas.
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