A Far North Dallas office tower, Preston Plaza, has been purchased at auction by Arthur Zeckendorf and his firm AZ Family Partners. The 10-story building, located at 17950 Preston Road, was auctioned from November 10 to 12 after a period of financial difficulties. Cushman & Wakefield marketed the sale, which began with an opening bid of $2.25 million. Zeckendorf did not reveal the final price but expects the transaction to close within two weeks.
Preston Plaza has faced declining occupancy rates, now around 35 percent, and increasing losses in recent years. In mid-2024, a court-appointed 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, hotel space or retail.
Zeckendorf told the Dallas Business Journal he plans to keep the building as office space: “Dallas — especially areas north of downtown — remains one of the strongest office markets in the country.” He described it as a long-term family investment and highlighted its location near Richardson, Addison and Plano as key strengths.
The last major renovations to Preston Plaza were completed in 2015. Now AZ Family Partners intends to invest between $10 million and $14 million for further upgrades including new office buildouts, elevator equipment, lobby redesign and possibly an on-site restaurant. Garrison Jones will lead efforts to revamp landscaping around the parking area.
Although residential conversion was considered, Zeckendorf’s team determined that focusing on office use is more viable at this time. Forge Commercial will handle leasing operations with a goal of reaching 75–80 percent occupancy. Early interest has reportedly come from family offices and law firms.
Zeckendorf expressed optimism about repositioning the property: “I’ve seen early interest from family offices and law firms,” he said, adding confidence that new ownership with fresh capital can stabilize the asset.
This move aligns with broader trends in Dallas’ commercial real estate sector. The Urban Land Institute recently ranked Dallas–Fort Worth as the nation’s top real estate market to watch for continued growth (https://uli.org/research/real-estate-market-outlook-dallas-fort-worth).
