Cawley Partners and Alamo Manhattan plan demolition to build 140–150 key boutique hotel
Two Dallas-based real estate firms have expanded their footprint in Uptown Dallas with the purchase of an older office property that is set to be redeveloped into a boutique select-service hotel, a project expected to cost as much as $55 million.
Cawley Partners, in partnership with Alamo Manhattan, acquired the three-story, 27,456-square-foot office building located at 2909 Cole Ave. The property, originally constructed in the early 1980s, was purchased for an undisclosed amount.
According to Cawley Partners Chairman and CEO Bill Cawley, the primary value of the acquisition lies in the land itself. He told CoStar News that the firm plans to pursue rezoning approval while continuing to operate the building in the interim. Discussions are already underway with multiple hotel brands to develop a boutique, select-service hotel on the site.
Cawley stated that the redevelopment budget is estimated between $50 million and $55 million, with plans for approximately 140 to 150 hotel rooms.
Once rezoning is approved, construction could commence within the next 18 months. In the meantime, Cawley Partners intends to generate income by offering short-term office leases. CoStar data shows the building is currently 73% occupied.
“We will continue managing the property to produce revenue during this period,” Cawley said.
For tax purposes, the Dallas County appraisal district last valued the property at nearly $3.8 million.
Cawley Partners and Alamo Manhattan have previously collaborated on similar projects. The two firms also acquired 3400 Carlisle St., another aging Uptown office asset that is expected to be redeveloped into a multifamily residential project when market conditions align.
Alamo Manhattan President Matt Segrest expressed confidence in the Uptown Dallas market, highlighting strong demand for hospitality offerings in the area.
“We believe there is a significant opportunity to address a gap in the Uptown hospitality sector with a high-quality select-service and extended-stay hotel,” Segrest said.
The newly purchased site is located roughly half a mile from the Marriott Uptown Dallas hotel, which was developed and is owned by Alamo Manhattan. The company brings more than 15 years of experience in apartment and hospitality development.
This transaction follows Cawley Partners’ recent acquisition of the former Rolex office building near Uptown Dallas. The property, now known as Harwood No. 1, is expected to undergo a major renovation aimed at attracting new office tenants.
Cawley noted that he remains optimistic about Uptown Dallas, citing its continued growth as a hub for business activity, hospitality development and urban living.
Source: Original reporting by Candace Carlisle, CoStar News.
