Pacific Elm Properties has secured a $132.5 million loan from CIM Group to support the ongoing conversion of Santander Tower in downtown Dallas from office space to residential units, according to the Dallas Business Journal. The recapitalization comes after Pacific Elm recently faced foreclosure on another downtown property and lost its stake in Comerica Bank Tower last year.
The new financing will fund the second phase of the Peridot Residences project within Santander Tower at 1601 Elm Street. This phase will add 105 apartments to the building, following the completion of 291 units delivered last year as part of the first phase. When finished, Santander Tower will feature a mix of residential rentals, 858,000 square feet of office space, a two-story Mint House hotel, the private Tower Club, and ground-floor retail.
Since redevelopment began at Santander Tower, about 350,000 square feet of office leases have been signed. Notable tenants include Wilson Elser, a New York-based law firm that downsized into 19,000 square feet on the 26th floor late last year. Santander Consumer USA occupies more than 200,000 square feet as well.
The conversion reflects a broader trend in downtown Dallas where landlords are increasingly repurposing office buildings for residential use to meet growing demand. Pacific Elm Properties is led by Jonas Woods and backed by billionaire Tom Dundon. The company owns six Class A towers totaling 4.4 million square feet and is planning additional conversions at other properties such as Bryan Tower at 2001 Bryan Street.
Santander Tower was one of North Texas’ largest office properties with 1.4 million square feet before its repositioning toward mixed-use development.
“Santander Tower’s resi conversion moves forward”
