A mostly empty office tower in Far North Dallas is headed for the auction block, setting the stage for a potential redevelopment play.
Preston Plaza, a 10-story, 260,000-square-foot building at 17950 Preston Road, will be auctioned between Nov. 10 and 12 with opening bids starting at $2.25 million, or $8.65 per square foot, the Dallas Morning News reported.
Cushman & Wakefield is advising on the sale. The 35 percent-leased property sits on a 6.3-acre parcel that brokers are marketing as a rare chance to reposition a struggling office asset or reimagine it entirely.
The site, which includes a structured parking garage, offers “strategic in-place zoning to minimize entitlement risk,” Cushman’s listing states, allowing redevelopment for multifamily, hotel or retail uses.
Cushman Director Matt Murphy told the outlet that the building presents a chance for investors to “lease up the property at a reset basis” in a corridor with tight supply and strong fundamentals. Murphy said that comparable buildings in the vicinity are roughly 90 percent leased, and that the recently passed Senate Bill 840 — which took effect Sept. 1 throughout Texas — could streamline residential conversions.
Built in the late 1980s and renovated in 2015, the building counts Republic Title, Veritex Bank and Texas Health Surgery Center among its tenants.
The building has been recently plagued by financial distress. After falling into receivership in 2024, the property changed hands in April when an entity tied to real estate credit firm K-Star Asset Management picked it up at a foreclosure auction for $13.85 million. The Collin County Appraisal District most recently valued it at $35 million for tax purposes.
While Uptown continues to absorb tenants and attract new development — capturing nearly three-quarters of the metro’s 2.7 million-square-foot construction pipeline — older suburban properties such as Preston Plaza in Far North Dallas are fighting to stay relevant amid high vacancies and shifting tenant preferences.
— Eric Weilbacher
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