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Historic Katy Building in Dallas Up for Acquisition: A Prime Hotel Conversion Opportunity – Image Credit HVS
The Katy Building, a historic Beaux-Arts architectural gem located at 701 Commerce Street in Dallas, is being presented by HVS Brokerage & Advisory for acquisition. The property, which has a rich history and a prime location in Dallas’s West End Historic District, offers immense potential for redevelopment into a hotel.
The Katy Building, a historic property in Dallas’s West End Historic District, is up for acquisition. Built between 1912 and 1914 for Dallas businessman Colonel John M. Simpson, it served as the headquarters for the Missouri-Kansas-Texas (MKT) railroad for over 50 years. The building’s architectural charm, versatile design, and prime location make it an ideal candidate for redevelopment into a hotel.
Property History:
H.A. Overbeck designed the Katy Building in the Beaux-Arts architectural style. Over the years, the building has undergone significant renovations while maintaining its historic character. It served as the headquarters for the MKT railroad, earning the nickname “The Katy.” The current ownership acquired the property in 2014 and has meticulously preserved its historic character.
Redevelopment Opportunities:
The property offers immense redevelopment potential, with its versatile design and zoning making it suitable for various hotel concepts. Developers could explore luxury, lifestyle, upscale, boutique, or micro-hotel models. The building’s spacious floors are well-suited for various facilities, including meeting spaces, guestrooms, restaurants, bars, fitness rooms, and retail outlets.
Tax Incentives:
The property’s historic significance presents an opportunity to leverage both federal and state historic tax credits. These incentives can substantially offset redevelopment costs, improve financial feasibility, and increase investor yield.
Lease Structure and Activation Potential:
The property’s existing lease structure provides a smooth transition for redevelopment. Most tenants are on short-term leases, allowing for easy vacancy. The previous restaurant tenant received city approval to convert the metered parking in front of the building into an outdoor seating area, offering unique potential for adaptive reuse.
Downtown Dallas Hotel Market:
Downtown Dallas continues to show strong lodging demand, supported by corporate presence, tourism, and convention activity. The area attracts millions of visitors annually, sustaining high occupancy levels and supporting the need for premium lodging options.
West End Historic District:
The property is in the vibrant West End Historic District, a prime urban setting for business and leisure travelers. Major employers in the area drive consistent business-travel demand, and the district also draws millions of visitors annually to its iconic sites.
Kay Bailey Hutchison Convention Center Dallas:
The Kay Bailey Hutchison Convention Center Dallas (KBHCCD) contributes significantly to tourism, job creation, and business activity in the city. Starting in Q1 2029, the planned expansion of KBHCCD is expected to generate $1 billion in economic impact from booked conventions.
Dallas–Fort Worth Metroplex:
The Dallas–Fort Worth Metroplex continues to solidify its reputation as one of the most sought-after corporate destinations in the nation. The region consistently ranks among the top markets for new and expanded corporate facilities.
Inquire at HVS.
