Zeckendorf Snaps up Auctioned Far North Dallas Tower

A beleaguered Far North Dallas office tower is getting a reset after landing a New York buyer with deep real estate lineage.

Arthur Zeckendorf and his firm, AZ Family Partners, placed the winning all-cash bid for Preston Plaza, a 10-story, 259,000-square-foot building on 6.3 acres at 17950 Preston Road that hit the auction block last month. The Nov. 10–12 auction, marketed by Cushman & Wakefield, began at $2.25 million, or $8.65 per square foot, though Zeckendorf didn’t disclose his final offer. The deal is expected to close within two weeks, according to the Dallas Business Journal. It will mark the firm’s first office acquisition in the city.

Preston Plaza has been stuck in a financial spiral for years. With occupancy down to about 35 percent and losses mounting, a receiver signaled in mid-2024 that the property could be forced into a sale. Significant debt added pressure, and by late October the tower was being pitched as a redevelopment candidate with potential for apartments, a hotel or retail.

Zeckendorf isn’t biting. He told the outlet that he plans to keep the 1980s building as offices, arguing Dallas — especially areas north of downtown — remains one of the strongest office markets in the country. He called the asset a long-term family investment and said the building’s fundamentals, including its Preston Road frontage and proximity to Richardson, Addison and Plano, remain solid.

The tower last saw significant upgrades in 2015, including a refreshed lobby, conference center and fitness area. Now AZ Family Partners plans to inject another $10 million to $14 million into improvements, ranging from new office buildouts and elevator equipment to a redesigned lobby and potentially an on-site restaurant. Zeckendorf hired Garrison Jones to lead a landscaping overhaul aimed at turning the sprawling parking area into something closer to a shaded park.

The firm also studied residential conversion costs, but determined a reset office strategy made more sense at the tower’s current basis. Leasing will be handled by Dallas-based Forge Commercial, with a target occupancy of 75 percent to 80 percent. Zeckendorf told the outlet that he’s seen early interest from family offices and law firms, giving him confidence that a stabilized owner with fresh capital can reposition the tower.

The upbeat posture mirrors broader bullishness around Dallas’ fundamentals, as major employers expand and the Urban Land Institute again ranks Dallas–Fort Worth the nation’s top real estate market to watch.— Eric Weilbacher