A Far North Dallas office tower, Preston Plaza, has been acquired by Arthur Zeckendorf and his firm AZ Family Partners following a recent auction. The 10-story, 259,000-square-foot property at 17950 Preston Road was marketed by Cushman & Wakefield and attracted a starting bid of $2.25 million. While the final purchase price was not disclosed, the transaction is expected to close within two weeks.
Preston Plaza has experienced financial challenges for several years, with occupancy dropping to about 35 percent and significant debt accumulating. In mid-2024, a receiver indicated that the property might need to be sold. By late October, it was being considered for redevelopment into apartments, a hotel, or retail space.
Despite these pressures, Zeckendorf stated he intends to maintain the building as office space. “Dallas — especially areas north of downtown — remains one of the strongest office markets in the country,” he told the Dallas Business Journal. He described Preston Plaza as a long-term family investment and cited its location near Richardson, Addison, and Plano as positive factors.
The building last underwent major renovations in 2015. AZ Family Partners now plans an additional investment of $10 million to $14 million for improvements such as new office buildouts, upgraded elevator equipment, a redesigned lobby, and potentially an on-site restaurant. Garrison Jones has been hired to oversee landscaping changes aimed at transforming the parking area into a shaded park.
Although residential conversion costs were evaluated by AZ Family Partners, they concluded that focusing on office use was more practical given current conditions. Leasing responsibilities will go to Forge Commercial with an aim to reach occupancy levels between 75 percent and 80 percent. Zeckendorf reported early leasing interest from family offices and law firms.
This acquisition reflects ongoing optimism about Dallas’ commercial real estate market as major employers continue expanding in the region.
