Dallas is attempting to sell the office building at 7800 North Stemmons Freeway after years of issues and significant public spending. The 11-story, 228,300-square-foot property, purchased by the city for $14.1 million, has required at least $29 million in taxpayer funds. CBRE is marketing the site as a redevelopment or owner-user opportunity.
Originally built in 1981 and renovated about ten years ago, the building was intended to house the city’s permitting office. However, an April report from City Manager Kimberly Tolbert revealed that the building was structurally unsound and could not obtain a certificate of occupancy. Despite an additional $15 million spent on repairs, the building remains uninhabitable, leading staff to return to their previous offices on East Jefferson Boulevard.
The report led to a temporary halt on new public real estate purchases unless previously approved by the City Council. The city also began reviewing its agreement with CBRE and moved to develop a comprehensive citywide real estate master plan.
The property costs the city about $73,000 per month for security and maintenance. Recently, Dallas spent nearly $650,000 on permits to install a new fire alarm system, even as it prepares to sell the building. The listing does not include a price and the property will be sold “as-is, where-is.” CBRE’s marketing materials emphasize the 5-acre site, flexible zoning, and proximity to the Medical District.
The decision to purchase the building in 2022 was made under then–City Manager T.C. Broadnax after what Tolbert described as “only a surface-level review” by JLL.
Council Member Chad West stated that officials only learned of the property’s listing after media inquiries. CBRE broker Patrick Benoist declined to comment due to client instructions. Offers are expected within three weeks, after which the City Council will consider its options privately.
Commercial brokers believe that demolition is likely due to the building’s condition and its location on the Stemmons Corridor. The city aims to minimize its losses by selling the property for potential redevelopment.
