A New York-based real estate firm led by Arthur Zeckendorf has acquired Preston Plaza, a distressed office tower in Far North Dallas. The 10-story building, located at 17950 Preston Road, was auctioned last month after facing financial difficulties and low occupancy rates.
Zeckendorf’s company, AZ Family Partners, submitted the winning all-cash bid during the Nov. 10–12 auction that started at $2.25 million. While the final price was not disclosed, the acquisition is expected to be completed within two weeks. This marks AZ Family Partners’ first office purchase in Dallas.
Preston Plaza has experienced declining occupancy, now at approximately 35 percent, and mounting financial losses. In mid-2024, a receiver indicated that a sale might be necessary due to significant debt pressures. By late October, the property was being considered for potential redevelopment into apartments, a hotel or retail space.
Despite these options, Zeckendorf stated his intention to maintain Preston Plaza as an office building. “Dallas — especially areas north of downtown — remains one of the strongest office markets in the country,” he told the Dallas Business Journal. He described the acquisition as a long-term family investment and cited factors such as Preston Road frontage and proximity to Richardson, Addison and Plano as key advantages.
The building last underwent major renovations in 2015 with upgrades to its lobby, conference center and fitness area. AZ Family Partners now plans an additional investment of $10 million to $14 million for further improvements including new office buildouts, elevator equipment upgrades and a redesigned lobby with a possible on-site restaurant. Garrison Jones has been hired to oversee landscaping changes intended to transform much of the parking area into shaded green space.
Although residential conversion costs were evaluated by AZ Family Partners, Zeckendorf said keeping it as offices is more feasible given current conditions. Leasing will be managed by Forge Commercial based in Dallas with a goal of reaching 75–80 percent occupancy. Zeckendorf noted early interest from family offices and law firms: “I’ve seen early interest from family offices and law firms,” he said.
The decision comes amid positive trends for Dallas’ commercial real estate market. Major employers are expanding in the region and recent reports have named Dallas–Fort Worth among the top U.S. real estate markets to watch (https://uli.org/research/real-estate-economic-forecast/).
