A historic Dallas listing aims to capture the momentum of upcoming projects meant to revitalize downtown Dallas.
Tanya Ragan’s Wildcat Management is selling the Purse Building, a six-story, 75,000-square-foot landmark at 601 Elm Street that was once home to Purse & Company Wholesale Furniture.
The brick building constructed in 1905 was used by the FBI as an investigative command center after the assassination of President John F. Kennedy in nearby Dealey Plaza. It’s on the National Register of Historic Place and is approved for state and federal historic tax credits as well as the city’s 10-year historic tax abatement.
When Ragan bought it in 2017, it had been vacant for decades. She began rehabbing the Purse Building by removing the outdated carpet and drop ceilings to reveal the building’s original pine floors and timber beams. She originally planned to lease it to an office user, put in a rooftop deck and ground-level retail. At one point, she considered converting the building into a hotel.
The property could be transformed into “multifamily or condo development, creative office, or a flagship destination for a single use,” per the marketing materials.
The property is “an irreplaceable piece of Dallas history,” Ragan said.
Ragan, an advocate for the revitalization of downtown Dallas, got her start in oil and gas leasing. She specializes in adaptive reuse and helped with the redevelopment of the Dallas Farmers Market from a collection of old warehouses into a vibrant mixed-use district with a daily market.
The Purse Building listing reflects the challenges real estate operators are facing downtown Dallas, which has lost much of its luster to Uptown. Following the “flight-to-quality” office trend, countless companies have relocated from downtown to new trophy buildings across Klyde Warren Park.
Downtown is also at risk of losing AT&T headquarters, with the telecommunications giant scouting a new location in the suburbs. AT&T currently occupies Whitacre Tower, also known as One AT&T Plaza. In addition, the Neiman Marcus flagship store, a downtown landmark, hangs in the balance after a groundswell of support delayed the closure of the beloved store this spring.
Dallas’ central business district struggled under the weight of excess older office space, which brings the area’s office vacancy to nearly 35 percent, compared to the overall market, where vacancy is 25.3 percent, according to a recent report from Partners Real Estate.
Converting obsolete buildings to other uses provided a much-hyped solution to the glut of office space, but making those projects pencil is a challenge.
Despite the area’s office market woes, the city is embarking on a $3.5 billion revamp of the Kay Bailey Hutchinson Convention Center. Meanwhile, Hunt Realty is planning a $5 billion redevelopment of Reunion Tower. Both projects would unfold within blocks of the Purse Building.
