Renovations to convert the Cabana Hotel into apartments are scheduled to begin in June, according to a state filing.

Cabana Sycamore Development is the builder behind the $116 million mixed-income multifamily housing project that involves 64 income-restricted units and 96 market-rate units, The Dallas Express previously reported. The redevelopment includes 420,000 square feet, and the renovations are expected to be completed by the end of next year.

In September, Dallas City Council members unanimously approved up to $41 million in economic development incentives to help rehabilitate the vacant property in the Design District on Stemmons Freeway. Just after acquiring the 10-story hotel in 2022, Dallas-based Cabana Sycamore Development said it would pursue adaptive reuse for the hotel, according to Zachary Krochtengel of Sycamore Strategies.

However, as previously reported by The Dallas Express, adaptive reuse projects in Dallas have been identified by researchers as unlikely to be profitable for builders and investors. According to RentCafe, of the 1,900 units in the development pipeline in 2022, less than 20% are under construction, with the remaining projects still in the planning stage. Furthermore, in Dallas, the “projected conversions backlog” increased by 60% since 2021, thanks in part to the City’s slow permitting process.

Built in 1962, the Cabana Hotel was frequented by several famed musicians, including Jimi Hendrix, Led Zeppelin, and The Beatles, and other notable guests such as President Richard Nixon and Norman Mailer. By the 1970s, the hotel ceased operations, and the property was used as a minimum-security 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.