Renovated Ross Tower Tests Investor Demand for Downtown Dallas Offices

Ross Tower, a 45-story office building just outside the Dallas Arts District, officially hit the market Thursday following a $14 million renovation. It’s the latest major downtown office property to hit the market as investors continue to weigh opportunities in older but renovated office buildings.

Cushman & Wakefield is marketing the 500 N Akard St. property, owned by Austin-based HPI Real Estate Services & Investments, Dallas-based Bandera Ventures, and Vancouver-based Second City Real Estate. Recent renovations include adding a porte-cochère, outdoor patio and pedestrian plaza, a tenant lounge, and Wi-Fi-enabled collaboration spaces. The tower’s elevators were modernized, the cooling system replaced, and exterior lighting updated. They also opened up the lobby to bring in more natural light and create a more modern, hospitality-focused environment for tenants.

The ownership group did not disclose an asking price for the 1.1 million square foot building. The Dallas Central Appraisal District values the property at approximately $99.1 million.

The listing comes as Dallas’ office market remains divided between newer, premium properties that continue to attract tenants and aging buildings struggling with higher vacancy rates.

“Ross Tower is exceptionally well-positioned to capture two converging sources of tenant demand,” said Cushman & Wakefield’s Matthew Murphy in a LinkedIn post. “The first is pricing driven with occupiers seeking Class A space at a significant discount to Uptown’s premium rents. The second is stability with existing Downtown tenants migrating out of undercapitalized buildings in search of the safety and stability that only a [fully] renovated, well-capitalized asset can offer.”

Uptown has offered stiff competition to the central business district in recent years, attracting numerous corporate relocations driven by a flight-to-quality in the office sector. The neighborhood commands a direct asking rent of $64.50 per square foot on average, roughly double that of downtown’s, according to Avison Young’s latest quarterly office sector report for D-FW.

“With occupancy at 60% offering secure in-place cash flow and in-place rents 15% below market, [Ross Tower] offers a clear and immediate path to value creation through lease-up execution, mark-to-market rent growth, and continued activation of its upgraded amenity platform,” said Murphy.

Originally opened in 1984 with the moniker Lincoln Plaza, the property was renamed in 2013 following its acquisition by Lionstone Investments and PegasusAblon. The current ownership group bought the building two years later. HPI and its partners implemented a capital improvement program to reposition the building as a premier downtown office property.

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The property features multiple conference centers, three adjacent parking garages with valet service, and on-site dining that includes 45 Oaks Café, Dakota’s Steakhouse, and the street-level Starbucks with outdoor seating. Additional amenities include concierge services, 24-hour security, on-site management, access to the adjacent Fairmont Dallas hotel via a pedestrian tunnel, and a partnership with the T. Boone Pickens YMCA across the street that provides tenants with workout options.

Current tenants include Dallas Regional Chamber, CoStar Group, the law firm Munsch Hardt Kopf & Harr, engineering firm Walter P Moore, and the architecture and design firm Gresham Smith.