Struggling Dallas has been hit with another blow as an iconic skyscraper has been foreclosed with its owner owing $230 million.
The National, a 52-story, 1.5 million-square-foot building in the heart of the city’s business district, was used for a combination of apartments, hotel rooms, retail and office spaces.
However its owner, Shawn Todd, blamed interest rates and downtown property values as he handed it over to lender Starwood Capital Group.
‘With our debt balance, the interest rate environment and property values downtown… we don’t see a path to us recouping our remaining equity,’ he told the Dallas Morning News.
‘The values aren’t there. That’s the main reason. The loan is due, and we’re not going to continue to pay.’
Todd added that this was the first year his firm Todd Interests had lost money in 35 years.
His firm invested $460 million into a renovation of the building, formerly known as the First National Bank Tower and opened in 1965.
It had been empty for ten years until it underwent Dallas’s biggest urban restoration project ever.
In 2019, Todd called the project the ‘largest historic tax credit deal in Texas’ – however just seven years later he has been forced to pull out.
The developers were given $100 million in tax credits.
The National is being foreclosed upon with $230 million in loans from Starwood Capital Group
The National is a 52–story structure in Dallas’ financial district which holds apartments, hotel rooms and office spaces
Todd Interests invested $460 million to redo The National Bank Tower into the esteemed The National
Owner Shawn Todd said his company Todd Interests said his company would no longer pay the $230 million loan on the National
The foreclosure comes hot on the heels of AT&T’s announcement that it will slowly abandon its Downtown Dallas campus to move to a new complex roughly 30 minutes away in Plano by 2028.
The internet company has been a fixture of the city since 2008 and its departure will affect roughly 6,000 employees.
AT&T helped fuel a thriving economy for the Southern city, but now many local businesses are worried about the future of the downtown once it leaves for good.
An AT&T spokesperson told the Daily Mail that the decision to move offices came after a year of planning and consideration.
‘The nature of the company and our work have both evolved significantly since we moved our headquarters to Dallas in 2008, but what hasn’t changed is our belief and confidence in the Dallas-Fort Worth Metroplex as the right place to operate a thriving multinational corporation. We are targeting partial occupancy in the new space as early as the second half of 2028,’ they said.
AT&T announced on January 5that it would be slowly abandoning its Downtown Dallas campus to move to a new complex roughly 30 minutes away in Plano, Texas, by 2028
Locals blame AT&T’s pullout on City Hall, including Mayor Eric Johnson, as local officials failed to correctly manage the downtown area
Dallas’s downtown has been left with declining property value and increasingly vacated buildings
Locals blame AT&T’s pullout on City Hall, as officials failed to correctly manage the downtown area, leading to public safety and quality of life issues, the Dallas Morning News Editorial Board wrote in an op-ed.
‘In short, downtown felt neither safe nor inviting to office workers, visitors or residents and city staff and elected officials were unpardonably slow to respond to the challenge,’ the board said.
The Wall Street Journal reported companies are abandoning the district due to aging office towers, the homeless population and rising crime.
Left behind are declining property values and increasingly vacated offices, apartments and hotels.
Dallas has around 3,700 homeless people and while violent crime rates are down, murder is up nine percent and shoplifting up nearly 22 percent, according to police statistics.
The city reportedly has the second-highest office vacancy rates in the country, with a whopping 27 percent left empty, the Journal wrote.
