Stonelake Capital Partners Breaks Ground on $180.8M Office Tower in Dallas Uptown, Secures Bank OZK Financing
Stonelake Capital Partners LLC broke ground July 23 on 2626 McKinney, a 17-story office tower in Dallas' Uptown submarket, marking the official start of construction on a project carrying a total development cost of approximately $180.8 million. Bank OZK provided construction financing for the tower; the loan amount was not disclosed. Stonelake is providing 100% of the equity.
Project Details: 2626 McKinney
Located at 2626 McKinney Avenue in Dallas, TX 75204, the building will total 180,841 square feet, comprising 173,774 square feet of office space and 7,067 square feet of ground-floor retail. At that scale, the project implies a development cost of roughly $1,000 per square foot — in line with current construction and land costs for highly amenitized infill office in prime urban submarkets.
The tower's design includes a hospitality-style valet drop-off area, landscaped outdoor spaces, and an 11th-floor amenity level with a terrace overlooking the Dallas skyline. The site sits adjacent to a Whole Foods grocery store and within walking distance of The Crescent, The Ritz-Carlton, S&D Oyster Bar, and other Uptown retail and dining destinations.
Alabama-based Brasfield & Gorrie will serve as general contractor. The firm previously served as general contractor on both Old Parkland and Omni PGA Frisco in North Texas. Stonelake expects the building to be delivered in early 2028, with tenant occupancy targeted for the fourth quarter of 2028.
Leasing and Financing Timeline
Stonelake announced in June 2026 that it had secured construction financing from Bank OZK. Kenneth Aboussie Jr., Stonelake's managing partner, said the firm is negotiating with "multiple tenants" and expects to announce leases in the coming months.
The path to groundbreaking was not linear. Stonelake acquired the Uptown site in 2021 and in 2023 revealed plans for a tower of roughly the same size, at the time targeting a 2025 opening. Construction did not begin. In 2024, the firm demolished the existing office building on the site. The June 2026 financing commitment from Bank OZK preceded the July 23 groundbreaking by roughly six weeks.
The sequencing tracks with broader conditions in commercial real estate debt markets, where lenders pulled back sharply on speculative office construction in 2023 and 2024 as interest rates rose. By 2026, select lenders have returned to financing well-located, amenity-rich office projects in strong urban submarkets.
Stonelake Capital Partners: Office and Portfolio Track Record
Stonelake Capital Partners, headquartered in Dallas, has developed approximately 1.45 million square feet of office space across Texas. Its Austin portfolio includes the 15-story Domain Tower, fully leased to Indeed; the 24-story Domain Tower 2, leased to PayPal and Samsung; and the 47-story 415 Colorado in downtown Austin.
Beyond office, Stonelake owns, is developing, or has developed more than 34 million square feet of industrial warehouses and 8,155 multifamily units. In 2025, the firm sold an industrial portfolio comprising 91 properties totaling nearly 7.6 million square feet for $920 million.
Uptown Dallas Office Pipeline
2626 McKinney is one of several significant office and mixed-use projects advancing in Dallas' Uptown and Knox Street areas. A few blocks south at 2401 McKinney Avenue, Morgan Stanley is evaluating a site for a high-rise project valued at more than $1 billion. The Dallas City Council recently approved $18.5 million in incentives to support that potential development. The site currently houses a Truluck's seafood restaurant and a closed Gold's Gym.
To the north in the Knox Street area, a joint venture including BDT & MSD Partners, Trammell Crow Co., and The Retail Connection broke ground in April on Knox & McKinney, a 300,000-square-foot office and retail project on the former site of a Chuy's Tex-Mex restaurant. Two blocks west, the same group is developing a 1 million-square-foot mixed-use project featuring multiple towers with office space, a hotel, condominiums, and 20,000 square feet of retail and restaurant space.
Demand for new office space in 2026 has concentrated in high-quality, amenity-rich buildings in well-located urban submarkets, with tenants increasingly prioritizing hospitality-style environments, outdoor space, and wellness features — attributes that Stonelake has incorporated into the 2626 McKinney program. Whether the Uptown submarket can absorb the new speculative supply by 2028 will depend in part on Stonelake's ability to convert its reported tenant negotiations into signed leases in the months ahead.