**Famed Dallas Landmark, Magnolia Building, to Undergo $200 Million Redevelopment**
The historic Magnolia Building in downtown Dallas, known for its iconic red neon Pegasus sign, is set to undergo a major transformation. Originally completed in 1922 as the headquarters for the Magnolia Petroleum Company, the building was once the tallest structure west of the Mississippi River and is widely recognized as Dallas’ first skyscraper. It was converted into the Magnolia Hotel in 1999.
In a new chapter for the historic building, Sycamore Development has announced plans to acquire and redevelop the property at 1401 Commerce Street, with a total investment of $200 million, including the cost of acquiring the site. The seller is NewcrestImage, a hospitality investment firm.
Under the redevelopment plan, floors four through 16 of the building will be transformed into residential apartments, while hotel rooms will occupy floors 17 and above. The first and second floors will house the hotel lobby and amenities, and a dedicated lobby and amenity space for apartment residents will be located on the third floor. Additionally, a new main lobby and guest room tower will be constructed as part of the renovation.
Construction is scheduled to begin in February 2026 and is expected to be completed by February 2028.
The Pegasus sign, a beloved Dallas landmark, underwent $360,000 in repairs in 2022 to ensure its structural stability and protect it from potential collapse.
