A prominent 10-story office tower in Far North Dallas, Preston Plaza, is set to go to auction next month. The property, located at 17950 Preston Road, is largely vacant and presents a significant redevelopment opportunity for potential buyers. Bidding will commence on November 10.
The nearly 260,000-square-foot building is currently only 35% leased, signaling its potential for a fresh vision. This auction marks a critical moment for the 6.3-acre site, which has been identified as one of the largest redevelopment opportunities in the region.
Key Takeaways
- Preston Plaza, a 10-story office tower in Far North Dallas, will be auctioned from November 10-12.
- The 260,000-square-foot building is only 35% leased.
- Bids for the property will start at $2.25 million.
- The site offers significant redevelopment potential for multifamily, hotel, or retail uses.
- The property was last valued at $35 million for tax purposes by the Collin County Central Appraisal District.
Auction Details and Starting Bids
The auction for Preston Plaza is scheduled to run from November 10 to November 12. Interested parties will see bids open at a starting price of $2.25 million. Commercial real estate firm Cushman & Wakefield is advising on the auction process, highlighting the strategic importance of this sale.
The tower's current low occupancy rate, at just 35%, makes it an attractive prospect for investors looking to revitalize a major property. This figure stands in stark contrast to comparable buildings in the surrounding area, which typically boast occupancy rates of around 90%.
"Preston Plaza offers an opportunity for a new buyer to lease up the property at a reset basis. Surrounding, comparable buildings are (roughly 90%) leased and there are significant barriers to entry for new office development today."
Matt Murphy, Director at Cushman & Wakefield
Strategic Redevelopment Potential
The nearly 6.3-acre parcel comes with strategic in-place zoning designed to minimize entitlement risk for future development. This flexibility opens the door for various uses beyond traditional office space, including multifamily residences, hotels, or retail establishments.
The property also includes a structured parking garage, a valuable asset that can support both existing and future uses. This infrastructure is a key advantage for any developer considering a large-scale project on the site.
Property Snapshot
- Location: 17950 Preston Road, Far North Dallas
- Size: Nearly 260,000 square feet
- Occupancy: 35% leased
- Land Size: Approximately 6.3 acres
- Built: Late 1980s, renovated in 2015
Background of the Property
Preston Plaza was originally constructed in the late 1980s and underwent renovations in 2015. Despite these updates, the property has faced considerable financial challenges and tenant departures in recent years. This led to its acquisition in an April foreclosure auction.
JPMBD 2017 C7 17950 Preston Road LLC purchased the property for $13.85 million at that time, according to Collin County records. The corporation's address is associated with K-Star Asset Management, a real estate credit service firm. Houston-based Tanglewood Property Group was the previous owner before the property entered receivership in 2024.
Dallas Office Market Trends
The Dallas office market has recently seen a significant shift. After five years of increasing vacancies, the market experienced its first drop, largely driven by the strong performance of the Uptown area. This district is quickly becoming the financial hub of Dallas, attracting new businesses and developments.
Nearly three-quarters of the metropolitan area's 2.7-million-square-foot construction pipeline is concentrated in Uptown. This trend highlights a broader siphoning of business away from older markets like downtown and certain North Dallas corridors.
Valuation and Future Prospects
For tax purposes, the Collin County Central Appraisal District most recently valued Preston Plaza at $35 million. It is important to note that such valuations are typically below actual market value, suggesting the property could fetch a higher price at auction, especially given its redevelopment potential.
The auction comes at a time when Dallas is seeing a renewed interest in strategic urban development. The recent implementation of Senate Bill 840, which went into effect on September 1, could further enhance the property's appeal for multifamily redevelopment, particularly in one of Dallas's top residential corridors.
The sale of Preston Plaza follows other major Dallas office properties heading to auction. Earlier this month, the 36-floor Harwood Center in downtown Dallas was also put up for auction, with bids currently under evaluation. These events underscore a dynamic period for commercial real estate in the Dallas-Fort Worth metroplex.
- Auction Date: November 10-12
- Starting Bid: $2.25 million
- Previous Foreclosure Sale: $13.85 million in April
- Tax Valuation: $35 million
The outcome of the Preston Plaza auction will provide significant insight into the evolving real estate landscape of Far North Dallas. Its strategic location and redevelopment potential make it a key property to watch.
