- NexPoint is set to redevelop the 42-story Cityplace Tower in Dallas with a $445M investment, starting by the end of 2026.
- The redevelopment features six new retail-focused buildings and will convert much of the tower into 970 apartments and a 221-key hotel.
- This shift follows the departure of Neiman Marcus Group’s headquarters and reflects broader pressures on aging office properties in key US cities.
Office Exodus Spurs Mixed-Use Strategy
NexPoint’s decision to redevelop Cityplace Tower comes on the heels of a major tenant loss and mounting office vacancy across legacy assets. According to The Real Deal, Neiman Marcus Group exited the tower, a move driven by cost-saving measures adopted by its new parent, Saks Global. This high-profile departure left a significant hole in the leasing roster, underscoring a trend seen throughout the Dallas-Fort Worth office market where large occupiers are scaling back downtown footprints and shifting to newer or suburban locations. As a result, legacy office towers face increasing pressure to reinvent themselves, with mixed-use conversions emerging as a survival strategy for older, underutilized assets.
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The Details
Filings with the Texas Department of Licensing and Regulation and past city presentations outline NexPoint’s plan for Cityplace Tower at 2711 North Haskell Avenue. The first phase, called The Apron, includes a $100M investment in six eight-story buildings around the tower’s base. The project will add 469 apartments by 2029.
The second phase will remake the tower from the top down. Developers will convert 27 floors into 970 apartments, including 194 income-restricted units. They will also turn eight floors into a 221-room hotel. NexPoint bought the property in 2018. The firm continues talks with Marriott International about branding the hotel. However, it has not chosen a partner.
Dallas Office Conversion Momentum Builds
Cityplace Tower is among Dallas’ largest office-to-residential projects. It exceeds many local conversions in size and cost. The $445M project is $145M higher than the tower’s original $300M construction cost in the 1980s. The North Central Expressway corridor has long featured office-only buildings. Now, owners are repositioning aging towers to capture housing and hotel demand.
CBRE reported Dallas-Fort Worth office vacancy stayed above 24% in Q1 2026. As a result, more owners are considering alternative uses.
Why It Matters
Cityplace Tower’s redevelopment could reshape Dallas’ commercial market. It also tests whether large office conversions work in Sun Belt cities. NexPoint plans to add nearly 1,000 apartments, along with retail and hotel space. The firm expects mixed-use amenities to restore value lost in a weaker Class A office market. According to the Dallas Morning News, the project could stabilize the neighborhood and expand housing supply. Notably, 194 apartments will remain income-restricted for workforce residents.
Investors may see this as a practical shift. Instead of holding vacant offices, owners are funding costly conversions. This comes as multifamily investment activity has slowed in several markets amid weaker rent growth expectations. CBRE reported negative office absorption in Dallas during Q1 2026. If Cityplace succeeds, it could encourage more tower conversions and support neighborhood revitalization across Texas metros.
What’s Next
NexPoint plans to start construction on The Apron before the end of 2026. It expects to finish the first phase by 2029. The company has not selected a hotel partner yet. It plans to finalize development schedules next year. Market participants will track leasing activity and local zoning decisions. These factors could shape future conversions in Dallas and other Sun Belt markets facing office distress.
