Sixth Street Partners with Pacific Elm on Dallas Office Tower Recapitalization in Uptown Submarket

Global investment firm Sixth Street has provided a structured equity investment to recapitalize the Bank of America Tower at Parkside, a Class-AA office real estate development in Uptown Dallas, through a joint venture with Pacific Elm Properties, a Dallas-based real estate development and investment firm. The transaction was announced March 24, 2026.

The 30-story tower, located at 1919 Woodall Rodgers Fwy adjacent to Klyde Warren Park, comprises approximately 500,000 rentable square feet of office space and roughly 6,500 square feet of ground-floor retail real estate. Currently under construction, the property is expected to reach completion in the first quarter of 2027. Pacific Elm Properties will continue to lead the project's development under the terms of the joint venture.

Transaction Structure and Office Real Estate Strategy

Through the real estate acquisition and recapitalization, Sixth Street provided structured equity capital to support the ongoing development of the tower. Financial terms of the transaction, including the equity check size, total capitalization, and any debt details, were not publicly disclosed.

"Bank of America Tower at Parkside reflects our conviction in trophy office located in highly desirable submarkets with limited availability," said Adam Rapport, Managing Director at Sixth Street. "Uptown Dallas is a notably active office submarket which benefits from one of the lowest Class-AA office vacancy rates in the country outside of New York. We are proud to partner with Pacific Elm Properties to help deliver a premier workplace destination in Dallas, combining an exceptional location and best-in-class hospitality amenities."

Sixth Street, which manages more than $130 billion in assets under management and committed capital, invests across a range of real estate asset classes including office, hospitality real estate, industrial real estate, retail, residential, and data centers. The firm was founded in 2009 and employs more than 700 team members, including over 300 investment professionals globally.

Uptown Dallas Office Market Context

The Bank of America Tower at Parkside is positioned in the Uptown submarket of Dallas, which Sixth Street characterized as having one of the lowest Class-AA office vacancy rates in the country outside of New York. The property sits adjacent to Klyde Warren Park, a pedestrian-oriented green space that serves as a connector between Uptown and the Dallas Arts District.

"The Klyde Warren Park corridor is Dallas' cultural center of gravity and the heart of North America's fastest growing finance hub," said Billy Prewitt, Chief Executive Officer at Pacific Elm Properties. "Bank of America Tower at Parkside sits at the center of the park and will be the tallest tower ever built in Uptown Dallas. Many people are already referring to it as Y'all Street's flagship tower. We're proud to be partnering with Sixth Street to deliver this landmark to the Dallas skyline."

The tower is partially pre-leased to Bank of America on a long-term lease, providing an anchor tenant for the development. Research indicates the bank's lease covers more than 238,000 square feet of the building's approximately 500,000 rentable square feet.

Real Estate Development Details and Amenities

The Class-AA tower was designed by Kohn Pedersen Fox and features a 12th-floor Sky Lobby, outdoor terraces, a fitness center, meeting and event space, valet parking, dry cleaning services, and 24/7 security. The ground-floor retail component adds a mixed-use dimension to the real estate development.

The property's location along Woodall Rodgers Freeway at the corner of N Harwood Street provides access to the broader Dallas-Fort Worth metroplex. Construction on the tower began in 2023, with upper-floor availability targeted for mid-2027 following the Q1 2027 delivery.

Pacific Elm Properties, which has completed more than $6 billion in real estate transactions over more than 30 years, focuses on the acquisition, development, and management of office and mixed-use properties in the Dallas area. The firm's portfolio spans office, residential, hospitality, and retail assets, primarily in the Dallas Central Business District and Uptown submarket.

Broader Implications for Office Real Estate Investment

The recapitalization comes as the broader U.S. office market continues to navigate elevated vacancy rates, while select high-amenity submarkets in growth metros such as Dallas-Fort Worth have demonstrated more resilient demand. Sixth Street's structured equity investment reflects a strategy focused on supply-constrained, trophy-quality office assets with strong anchor tenancy — a profile that has attracted institutional capital even as other segments of the office sector face headwinds.

The joint venture structure, with Sixth Street providing capital and Pacific Elm retaining development management responsibilities, is consistent with recapitalization transactions in which an institutional equity partner supports a developer through the construction and lease-up phases of a project.

Upon completion, Bank of America Tower at Parkside will stand as the tallest tower built in Uptown Dallas, according to Pacific Elm Properties. The project's Q1 2027 delivery timeline positions it to enter the market as return-to-office trends continue to evolve in major U.S. metropolitan areas.