Sycamore Development Starts Reuse of Dallas’ Cabana Hotel

Developer Zach Krochtengel has set out to revive rock royalty’s old haunt in the Dallas Design District.

Sycamore Development, a branch of Sycamore Strategies, started construction this week on a $55 million adaptive reuse of the former Cabana Hotel, famous as a stopover for luminaries of the mid-20th Century, Bisnow reported.

The redevelopment will bring nearly 158,000 square feet of residential space to 899 Stemmons Freeway, offering 175 apartments with market-rate and subsidized options. Hunt Capital Partners has joined Sycamore as a development partner on the project, while Andres Construction is the general contractor.

“When we found out this was available, we saw the makings of a great project,” Krochtengel said.

The estimated cost comes to $314,000 per unit, but the development is backed by $41 million in tax increment financing. At least 70 of the units will be reserved to tenants earning 30 to 80 percent of the area median income for 45 years, according to a city of Dallas news release.

Plans include restoring historic elements like the facade, terrazzo flooring and pool deck. Construction is expected to conclude in early 2026.

The developers plan to incorporate photography from the hotel’s heyday, capturing its colorful history. Built in 1962 by famed hotelier Jay Sarno, the Cabana Hotel became famous for hosting icons like The Beatles, Jimi Hendrix and Richard Nixon.

Krochtengel has experience building mixed-income housing in Dallas, having faced community opposition with its Cypress Creek at Forest Lane project before securing city council approval.

“Transformative projects don’t happen without a tremendous amount of buy-in,” Krochtengel said. “The city of Dallas has bought into affordable housing. They bought into putting it in high-opportunity areas.”

Dallas voters approved an $82 million affordable housing bond earlier this year, the city’s biggest ever. At least $36 million of that will go to helping developers finance housing projects that include affordable units. The city needs about 33,600 additional affordable rental homes for lower-income residents.

— Andrew Terrell