Dallas is finally trying to unload one of its biggest real estate embarrassments after years of dysfunction.
The city listed 7800 North Stemmons Freeway, an 11-story 228,300-square-foot office building that has cost at least $29 million in taxpayer funds after an initial purchase price of $14.1 million. CBRE is marketing the site as an “outstanding redevelopment or owner-user opportunity,” the Dallas Morning News reported.
The property, built in 1981 and renovated about a decade ago, was supposed to house the city’s beleaguered permitting office.
But according to an April after-action report from City Manager Kimberly Tolbert, the building was so structurally unsound that the city couldn’t even secure a certificate of occupancy. Despite sinking another $15 million into repairs, the site remains uninhabitable, forcing staff back to their old digs on East Jefferson Boulevard.
Fallout from Tolbert’s report included the short-term suspension of any public real estate purchases unless previously approved by the City Council, as well as a review of the city’s working agreement with CBRE going forward and to finalize a request for proposal for a comprehensive citywide real estate master plan.
It’s also been a costly blunder to maintain: Dallas is spending roughly $73,000 a month on security and upkeep. The city recently pulled permits — totaling nearly $650,000 — to install a new fire alarm system, even as it moves to offload the property. CBRE’s marketing materials highlight the building’s 5-acre site, flexible zoning and proximity to the Medical District, but the listing is unpriced and being sold strictly “as-is, where-is.”
The city’s decision to buy the building in 2022 was made under then–City Manager T.C. Broadnax, following what Tolbert later called “only a surface-level review” by JLL.
Dallas officials, including Council Member Chad West, confirmed they only learned the property had quietly hit the market after inquiries from the media. CBRE broker Patrick Benoist, who worked on the deal, declined to comment to the outlet, citing instructions from his client — the city. Offers are due in about three weeks, after which the council will review its options privately.
Commercial brokers said the property is likely a teardown, given its condition and location along the moribund Stemmons Corridor. City Hall is hoping to cut its losses and turn a costly cautionary tale into someone else’s redevelopment play.
— Eric Weilbacher
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