Stonelake Capital Partners Revives 17-Story Uptown Dallas Office Tower Near Whole Foods, Secures Construction Financing

Stonelake Capital Partners has secured construction financing for a 17-story office tower in Uptown Dallas, with groundbreaking planned for July 2026, the firm announced. The project, located on McKinney Avenue adjacent to the Whole Foods Market in Uptown, marks a revival of development plans the firm first disclosed in 2023 before putting on hold.

Project Details and Site History

The proposed tower is a ground-up Class A office development situated in the Uptown submarket of Dallas, Texas. Stonelake Capital Partners originally acquired the site in 2021 and unveiled an initial concept for the tower in 2023 before pausing the project amid higher interest rates, construction cost volatility, and broader uncertainty in the office market. Specific details including rentable square footage, projected delivery date, and loan size have not been publicly disclosed.

The site sits immediately adjacent to the Whole Foods Market on McKinney Avenue, one of Uptown Dallas's primary commercial corridors. The location places the development within a walkable, amenity-rich urban environment that has historically attracted financial, legal, and professional services tenants.

Stonelake Capital Partners' Development Platform

Founded in 2007 and headquartered in Austin, Stonelake Capital Partners is a privately owned real estate investment firm with offices in Dallas, Austin, and Houston. The firm's strategy centers on urban infill development and acquisitions in Texas and Sunbelt markets.

The Uptown Dallas tower is consistent with Stonelake's broader Texas office development activity. The firm is also developing 415 Colorado in Downtown Austin, a project that includes approximately 465,000 rentable square feet of office space on a site at the corner of 5th and Colorado streets. In Austin, the firm also owns IBM Domain 45, a 481,050-square-foot office building fully leased to IBM, which it acquired along with approximately 31 acres of land at an 8.0% cap rate. Additional Stonelake-developed assets include 200 Park Place, a Class A office tower at 4200 Westheimer Road in Houston, and 7East in Austin.

Market Context: Uptown Dallas Office Conditions

The decision to move forward in mid-2026 comes as the broader office market continues to bifurcate between older commodity space and newer, highly amenitized Class A product. Uptown Dallas has maintained above-average occupancy and rent levels relative to the wider Dallas-Fort Worth market, supported by proximity to executive housing, walkable retail, and a concentration of corporate relocations and professional services firms.

While Dallas overall carries significant office vacancy, the supply of new, best-in-class space in prime walkable locations such as Uptown is more constrained than the broader market inventory. Projects shelved during the 2022–2024 period of elevated interest rates and construction cost uncertainty have reduced the pipeline of new deliveries, potentially creating a supply gap into which the Stonelake tower could deliver.

Starting construction in July 2026 also reflects some stabilization in capital markets conditions that had made construction financing difficult to secure for office projects in prior years. Stonelake's ability to close construction financing for a speculative office tower in the current environment signals continued lender confidence in the firm's track record and the Uptown submarket's fundamentals.

Outlook

Stonelake Capital Partners has not announced a projected delivery date, anchor tenants, or total project cost for the Uptown Dallas tower. The firm's announcement, published July 7, 2026, confirmed financing had been secured and construction was set to begin that month. Further details are expected as the project advances through the construction phase.