Stemmons Towers in Dallas sold to Sava Holdings for luxury apartment conversion
Dallas, Texas – Stemmons Towers, an office campus near Central Dallas, is set to undergo a significant transformation. Sava Holdings, Ltd., a Dallas-based boutique hotel developer, has acquired the property and plans to redevelop it into Lumiére, an upscale 394-unit apartment community.
From Office Space to Luxury Living
The 14-acre, four-building office campus, encompassing 285,312 square feet, was previously owned by 2700 Stemmons LP. The sale amount remains undisclosed. The transaction was facilitated by Younger Partners, with Executive Managing Director John St. Clair and Managing Principal Trae Anderson representing the seller.
Built in three phases between 1963 and 1968 by a joint venture between John Stemmons and Trammel Crow, Stemmons Towers was once at the forefront of modernist office design. However, by the time of its sale, the buildings struggled to attract and retain tenants, reflecting the broader challenges faced by the city’s office market, which has been experiencing rising vacancy rates and an increasing number of distressed properties.
Sava Holdings plans to start renovations in mid- to late 2024, though the completion date is yet to be determined. This redevelopment marks the company’s first venture into multifamily properties, building on its experience in converting hospitality properties in the area.
Preserving Architectural Heritage
The firm intends to maintain the original exterior facades of the buildings while adding a 13th floor to each of the 12-story towers. The four buildings, positioned to the East, South, North, and West, will house 60, 96, 98, and 140 units, respectively. These units will cater to the upper-tier market rate to luxury rentals.
Suhas Naik, Principal at Sava Holdings, highlighted the architectural significance of Stemmons Towers. “The original design of the four 12-story tall mid-century modern Stemmons Towers office buildings in the 1960s was at the forefront of modernist design at the time, and the linear landscape zone that connects all buildings is a unique feature that enhanced the lives of the occupants,” said Naik. He added, “The renovation and rehabilitation planned will return this architectural composition to its former appearance with a transformation into multifamily use.”
Enhancing the Surrounding Area
Around Lumiére, Sava Holdings aims to upgrade the landscaping to resemble a park and add an outdoor pool with cabana areas, alongside a spa. The building will also feature distinctive lighting similar to many high-rises in Downtown Dallas. This lighting feature inspired the redevelopment’s name, Lumiére, and was part of the original campus design.
Lumiére’s location is strategic, lying across from the Medical District of Dallas, close to many of the city’s largest employers. The community is conveniently situated between the Dallas Area Rapid Transit’s Medical/Market Center rail station and Stemmons Freeway, providing direct access to The City Center District.
A Growing Trend in Real Estate
The conversion of older, underused office spaces into multifamily units is a growing trend in the U.S. A report from February 2023 by the Urban Land Institute and the National Multifamily Housing Council noted the median age of office stock at 40 years, with a significant portion potentially obsolete. Similar transformations are occurring nationwide, such as in Oklahoma City and New York City, where vacant office spaces are being repurposed into residential units.
The Lumiére project in Dallas is a testament to this evolving real estate landscape, blending historical preservation with modern living to meet the changing needs and preferences of urban dwellers.
