A Dallas-based private equity real estate firm plans to break ground on a new trophy office building in Uptown Dallas next month.
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Stonelake Capital Partners procured construction financing for a 17-story speculative office tower at 2626 McKinney Ave. The firm is engaged with multiple prospective tenants for the nearly 181K SF building, the Dallas Business Journal reported.
The 2626 McKinney tower will feature nearly 174K SF of trophy office space and just over 7K SF of ground-floor retail, with Stonelake set to provide 100% of the project's equity. Work is slated to start in July and conclude in early 2028.
Bank OZK provided the construction loan, though financing details weren’t disclosed.
Stonelake purchased the site for the tower in 2021 and announced plans for a tower of similar specifications two years later. That $68.7M project was supposed to be completed in 2025, but construction never began.
The firm tore down the existing office building at the site in 2024.
Plans for the new tower call for a hospitality-style valet area for the McKinney Avenue entrance and an 11th-floor amenity level with views of the Dallas skyline.
The general contractor for the project will be Alabama-based Brasfield & Gorrie. HPI's Ben Cuzen and Ward Eastman are overseeing office leasing for the project.
McKinney Avenue could soon be a busy street for construction, as the Dallas City Council approved an $18.5M incentive package for a proposed tower for Morgan Stanley on the road this week.
The financial services firm is mulling a $684M investment in a new high-rise at 2401 McKinney Ave. to consolidate its local operations. However, Morgan Stanley is also considering Alpharetta, Georgia, for the project.
Trophy office buildings have recorded record-high rents in Uptown as Dallas-Fort Worth’s reputation as a financial hub has grown with the rise of Y'all Street and the planned launch of the Texas Stock Exchange this year.
Planned office construction is good news for Dallas’ central business district, which has made headlines this year for big names moving out of the city.
In January, AT&T announced plans to move its global headquarters to Plano in 2028. The telecommunications titan’s new $1.35B global headquarters will have more than double the space of its 1M SF building in Downtown Dallas.
Then, in June, the Dallas Mavericks announced plans to leave the American Airlines Center and purchase 104 acres of the former Valley View Center mall site in North Dallas to build a mixed-use district anchored by a new arena.
The Dallas Stars followed the Mavs’ news with plans to move from the American Airlines Center to Plano. The team signed a letter of intent to build a more than $1B mixed-use district with a new arena at The Shops at Willow Bend mall site in the city.
CORRECTION, JUNE 26, 10:05 A.M. CT: A previous version of this story misidentified the firm marketing the project's offices. This story has been updated to include HPI.
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