Residential conversion is coming for the first downtown highrise built by legendary Dallas developer Trammell Crow.
Missouri-based developers Lotus Holdings and O’Reilly Hospitality plan to convert the 14-story Hartford Building at 400 North Saint Paul Street into apartments, the Dallas Morning News reported.
The developers aim to bring 217 apartments, with construction expected to begin in September and wrap up by January 2027, according to filings with the state. The estimated renovation cost is $41 million, though total investment is expected to range between $60 million and $70 million, which is $276,500 to $322,600 per unit.
The 175,000-square-foot building was constructed in 1959 for Hartford Fire Insurance Group. The developers intend to pursue federal and state historic preservation tax credits to support the conversion.
Lotus CEO Mihir Patel said the group originally planned a hotel for the site upon its acquisition in December 2021 but shifted to apartments after construction costs and financing terms made hospitality less feasible.
The property previously received more than $1 million in incentives from the City of Dallas under a prior owner, local office building investor Ken Good Jr., to restore the brick façade and make streetscape improvements like outdoor dining and a pocket park.
The building will offer workforce housing, with units expected to range between 500 and 900 square feet. Floors 2 through 13 will house the apartments, while the top floor will serve as amenity space. The site’s location near the St. Paul DART station was a factor in the city’s support for the plan.
Downtown Dallas has emerged as one of the most active metros for office-to-apartment conversions, with an estimated 2,725 units in the pipeline this year, the fifth most in the U.S., according to RentCafe.
The Dallas apartment market is facing a vacancy rate of 11.2 percent due to an oversupply of units. However, strong demand driven by population growth and economic development is expected to stabilize supply and lead to future rent increases. Despite the current oversupply, the market is showing signs of recovery, with predictions of modest rent growth as the pipeline of new units begins to clear.
— Judah Duke
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