New low-income housing units are coming to Dallas’ Design District.
On Wednesday, Dallas City Council unanimously approved up to $41 million in taxpayer spending on economic incentives to help redevelop a vacant hotel along Stemmons Freeway into a low-income high-rise with more than 150 apartment units.
The Cabana Hotel, located at 899 N Stemmons Fwy, will be converted into a low-income housing development with approximately 160 apartment units — 64 income-restricted units and 96 market-rate units, according to the development proposal presented to the City.
Cabana Sycamore Development is the builder behind the $116 million project. Shortly after acquiring the 10-story hotel in 2022, the Dallas-based builder said it would pursue an adaptive reuse strategy that would breathe new life into the vacant building, according to Zachary Krochtengel of Sycamore Strategies.
“We are excited about the opportunity to revitalize such an important part of Dallas’ architectural history while providing much-needed mixed-income housing in the Design District,” Krochtengel told CandysDirt.com back in May. “The unique design elements of the Cabana Hotel will make for one-of-a-kind units with unparalleled views of downtown Dallas.”
As previously reported by The Dallas Express, adaptive reuse projects in Dallas have been identified by researchers as unlikely to turn a profit for investors and builders. According to a recent report by RentCafe, Dallas did not complete any new adaptive reuse projects last year despite having more than 1,900 units in the development pipeline.
Of the 1,900 units in the pipeline in 2022, fewer than 20% are under construction, with the remaining projects still in the planning stage, according to information provided to The Dallas Express by RentCafe. Dallas has also seen its “projected conversions backlog” grow by 60% since 2021, partly due to the City’s slow permitting process.
Built in 1962, the Cabana Hotel was a go-to destination for many musicians and celebrities back in its heyday. However, the hotel eventually ceased operations in the 1970s, later transforming into a minimum-security county jail.
Centurion American Development Group eventually acquired the high-rise in 2017 before selling it to Cabana Sycamore Development after struggling to develop a plan for the site. According to the new builder, redevelopment of the Cabana Hotel will begin sometime in early 2024.
This is a “huge victory for this area, especially with all the new housing coming in,” said Dallas City Council Member Omar Narvaez (District 6) during an Economic Development Committee meeting on September 5. “As much as I would have loved to see the old Cabana Hotel come back, housing is much more important to us, especially in the Design District.”
The Dallas Express reached out to Cabana Sycamore Development for more information on the conversion but did not hear back by press time.