Dallas Approves Tax Breaks for Cityplace Redevelopment

One of Dallas’ most ambitious office-to-residential conversions struck a tax-abatement deal.

The Dallas City Council unanimously approved nearly $14 million in tax abatements to support NexPoint’s $445 million redevelopment of Cityplace Tower, the Dallas Morning News reported. The developer pitched the redevelopment after the exit of its major tenant Neiman Marcus Group.

The deal gives NexPoint a 90 percent discount on property taxes exceeding the building’s current value for the next 10 years, in exchange for $341 million in investment.

The project is one of Dallas’ largest and most complex office-to-residential conversions to date.

NexPoint acquired the 42-story tower, located at 2711 North Haskell Avenue, in 2018, but plans accelerated after Neiman Marcus terminated its lease earlier this year. The brand had moved its 85,000-square-foot headquarters into Cityplace in early 2023 before reversing course, opening the door for NexPoint to rethink the site.

The redevelopment will unfold in two phases. First is a ground-up apartment complex on 5.3 acres of surrounding land, featuring at least 465 mixed-income units and 22,000 square feet of retail.

Construction is expected to begin later this year, with a delivery deadline of December 2028.

The second phase centers on converting the tower itself, transforming vacant office floors into 240 mixed-income residential units, a gym, a swimming pool and 50,000 square feet of event space, including an upper-floor event venue.

Another 115 units are slated to deliver by 2029, with the final 150 units set for completion by 2030.

The project also includes plans for a 221-key luxury hotel with a restaurant and pool deck, plus eight stories of underground parking across six garages. At least 20 percent of all residential units will be reserved for households earning at or below 80 percent of the area median income, which is $93,850 for a family of four.

The Cityplace redevelopment is part of a broader trend in Dallas and other Sun Belt markets, where landlords are repositioning aging office assets into housing as remote work reshapes urban demand. NexPoint’s plan mirrors similar efforts underway in Atlanta, Miami and elsewhere as developers seek to pull ahead of office value erosion.

— Judah Duke