Construction work will cost around $90 million and work is expected to begin in February 2026.
DALLAS — This article was originally published by our content partners at the Dallas Business Journal. You can read the original article here.
A Dallas firm plans to redevelop the historic 29-story Magnolia Building into a mixed-use space, dividing it between affordable housing and upscale hotel lodging.
Sycamore Development plans to spend $200 million, including property acquisition costs, to buy and redevelop the landmark property at 1401 Commerce St., the developer told the Dallas Morning News.
Sycamore plans to add 130 mixed-income apartments to the property and reduce the hotel room count of the Magnolia from more than 320 to 160, according to the DMN. The apartments will include studio, one- and two-bedroom units, and more than half of the units will be income restricted, meaning their price will be based on a percentage of the tenant’s income rather than market value, to ensure affordability for low-to-moderate-income households.
The Magnolia Building, known for its iconic red neon Pegasus sign atop the roof, was originally built in the 1920s as the headquarters for the Magnolia Petroleum Co. It’s considered Dallas’ first skyscraper and was the tallest building west of the Mississippi River when it opened in 1922. It was redeveloped into the Magnolia Hotel in 1999.