NexPoint Diversified Real Estate Trust is moving forward with its $445 million redevelopment of Cityplace Tower in Dallas. The company updated investors on the project’s progress during a call this week, outlining developments in financing, design, and hotel planning for the 42-story tower located along U.S. 75.
NexPoint acquired Cityplace Tower in 2018. Earlier this year, Neiman Marcus announced it would leave its headquarters at the property after two years, which helped accelerate NexPoint’s plans to reposition the building. The redevelopment will convert parts of the office tower into residential units and hotel rooms and add eight six-story apartment buildings on surrounding land at 2711 North Haskell Avenue.
The project is divided into four phases. The first phase, called “The Apron,” will construct 465 apartments on a 5.6-acre site next to the tower. Matt McGraner, Executive Vice President at NexPoint, said, “the company has received ‘accretive financing proposals’ for The Apron and expects to select a lender within 30 to 60 days.” Groundbreaking is expected in six to nine months.
For hospitality elements, NexPoint is working with Marriott International on two lifestyle hotel brands designed to fit with the planned upscale residences. Marriott initially proposed a business-focused concept but changed direction after discussions with NexPoint. The companies previously collaborated on Marriott Dallas Uptown.
McGraner also addressed national multifamily housing trends during the call. He noted that annual completions are expected to reach about 695,000 units across the United States over the next year—approximately 3.5 percent of total inventory—before dropping by 27 percent in 2026 and another 20 percent in 2027, according to CoStar projections. This anticipated decline may lead to a supply-constrained market with renewed rent growth.
NexPoint aims to have new units ready as national housing supply tightens, which it believes will benefit Cityplace Tower’s prospects when completed. Originally built in 1988 as part of a planned two-tower complex joined by a sky bridge, Cityplace remains Dallas’ tallest building outside downtown.
