Two long-struggling office towers in Arlington are inching closer to the sale block, offering an example of older suburban office buildings experiencing distress across North Texas.
Copeland Tower and Stadium Place, adjacent properties at 1250 and 1200 East Copeland Road totaling just over 210,000 square feet, are now expected to be marketed for sale in early 2026, according to a Nov. 15 notice tied to their commercial mortgage-backed securities loan. The Dallas Business Journal reported that the update comes as the buildings’ appraised value keeps sinking and leasing momentum remains elusive.
The 12-story Copeland Tower at 1250 East Copeland Road spans 126,628 square feet, while the neighboring five-story Stadium Place at 1200 East Copeland totals 84,653 square feet. Built in 1987 and renovated in 2017, the towers sit just over a mile from Arlington’s Entertainment District and are familiar fixtures to drivers along I-30.
In 2022, a commercial mortgage-backed securities trust arranged by Swiss bank UBS took title to both buildings from Houston-based Aqua Investment Group following a foreclosure auction. Since then, the trust has focused on stabilizing the properties through leasing and renewals, while weighing longer-term options.
Earlier notices indicated plans to market the buildings this year. The latest filing pushes that timeline out, stating the “note holder anticipates marketing the collateral for sale” in the first quarter of 2026. Chris Hamilton was recently appointed as substitute trustee to oversee the properties on behalf of the loan servicer.
Leasing conditions have done little to bolster the outlook. According to recent CMBS investor reports, Copeland Tower’s occupancy has been stuck at 40 percent since the start of the year. Stadium Place slipped to 68 percent occupied, down from 77 percent in February.
Major tenants include the Texas Department of Family & Protective Services and Meyer Distributing. Northstar Energy Services’ roughly 10,900-square-foot lease expired in November. The state agency’s 46,239-square-foot lease at Stadium Place runs through 2027.
Valuations tell a harsher story. The combined appraised value of the towers fell to $9.4 million as of Sept. 24, down roughly 67 percent from a $29 million valuation in 2018. The properties are saddled with at least $18.6 million in outstanding mortgage debt, according to servicer reports.
The decline marks a sharp reversal from pre-pandemic highs. After years of stagnant leasing, occupancy climbed to about 92 percent in 2018 and 2019 following a push by Bradford Commercial. That progress unraveled during the pandemic, as tenants downsized and ownership sought repeated loan relief. Several large leases rolled in 2023 and 2024, including health care firm Multiplan’s 59,153 square feet.
The Arlington-Mansfield Class B office market totals about 3.8 million square feet, according to JLL, and has logged negative absorption this year with vacancy hovering above 13 percent.
— Eric Weilbacher
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