The Galleria complex in Far North Dallas is set to transform with the announcement of upgrades to its office towers by the new owner, Piedmont Office Realty Trust Inc.
The Atlanta-based investor acquired the three office towers north of LBJ Freeway in 2020 for $400 million. The purchase was made possible through a $500 million line of credit and the sale of another property in Philadelphia.
Now Piedmont is planning to invest over $9 million in renovating the buildings, which were built back in the 80s and 90s, per The Dallas Morning News.
The 1.4-million-square-foot office towers along Noel Road are connected to the Galleria Dallas shopping mall. Both properties have been the subject of some of the largest building sales in recent years in North Texas.
The towers were previously upgraded by CBRE Global Investors, which bought them for over $300 million in 2015. New light wood and white marble fixtures were put in, an 8,500-square-foot fitness center was placed in the center tower, and common areas like tenant lounges or coffee bars were scattered throughout.
These renovations came out at nearly $27 million, per the DMN.
At the time of Piedmont’s acquisition, the office towers were occupied by significant tenants, including Amazon, with a lease rate of approximately 90%.
The upcoming renovations are set to start in April and will be finished by the end of the year, per the DMN. The project, which includes the construction of new steel and glass entry canopies, will be designed by Dallas’ Omniplan Architects.
The changes planned for the Galleria Towers will bring a fresh and modern look to the complex.
The new design will improve the towers’ aesthetic appeal, create a welcoming atmosphere, and enhance the overall experience for tenants and visitors. Upgrades include new paving, landscape, hardscape, site lighting, and replacement of existing storefronts.
Piedmont owns a number of other properties in Dallas and Las Colinas. The company’s notable holdings in the area include the Park Place on Turtle Creek building in Oak Lawn, One Lincoln Park in North Dallas, and the 6011, 6021, and 6031 Connection Drive buildings in Las Colinas.
The renovation of the Galleria Towers comes as the adjoining mall undergoes significant redevelopment plans.
As The Dallas Express reported in December, Metropolitan Life Insurance took ownership of the 40-year-old shopping center and the hotel, which fronts the Dallas North Tollway. MetLife held $315 million in loans against Galleria Dallas and county records show that its then-owner UBS Realty agreed to relinquish ownership.
“Galleria Dallas and Westin Galleria Hotel are high-quality assets well-positioned in the Dallas market,” said Dave Franecki, a spokesperson for MetLife, at the time of the exchange, per the DMN.
MetLife is considering major redevelopment plans for the 1.9-million-square-foot, three-level shopping mall and the 16-story hotel.
Despite rumors about the mall closing, it recently saw the opening of several new specialty stores, as reported by The Dallas Express.
