3L Real Estate Plans 300-unit Office-to-Resi Conversion in Downtown Fort Worth

A Chicago-based developer, 3L Real Estate, is embarking on an ambitious project to repurpose a notable building in downtown Fort Worth. The structure at 115 West Seventh Street, previously housing Fort Worth National Bank and Oncor Electric, is set to be converted into over 300 residential units.

Project Details

The planned transformation of the 330,000-square-foot building is expected to cost around $30 million, averaging less than $100,000 per apartment. The development will begin in August and is anticipated to take just over a year to complete. The ground-floor retail spaces will be preserved in this conversion.

Market Trends in Office-to-Residential Conversions

Office-to-residential conversions have become increasingly popular as remote work has diminished the demand for office spaces. This trend also addresses the growing need for urban housing. Older office buildings with high vacancy rates are particularly suitable for such redevelopment projects.

Fort Worth vs. Dallas: Conversion Trends

In Fort Worth, office-to-residential conversions are relatively rare due to the city's strong office occupancy rate of approximately 90 percent. In contrast, Dallas has seen a significant rise in these projects, driven by a 26 percent office vacancy rate. Dallas is set to add over 3,000 new apartments through office conversions, ranking it third in the nation for such projects.

Other Conversion Projects in Fort Worth

Despite the lower frequency, some developers are still pursuing office conversions in Fort Worth. Icon Lodging is converting the former XTO Energy Building into a Residence Inn at a cost of $33 million. Additionally, buildings like the Sandman Signature Hotel and The Sinclair have been successfully transformed from office spaces.

3L Real Estate's Broader Portfolio

3L Real Estate is actively involved in several adaptive reuse projects beyond Fort Worth. In Dallas' West End district, the firm is converting an office building at 501 West Elm Street into apartments. The company is also transforming an office building in downtown Milwaukee into a mixed-use residential complex, highlighting its expertise and commitment to revitalizing outdated office properties.