Redevelopment of Ambassador Hotel site into Dallas apartments begins
Progress is being made on the former Ambassador Hotel, the historic property southeast of downtown Dallas, which is being transformed into an upscale apartment community.
Located in the Cedars neighborhood at 1312 S. Ervay St., the building, which was previously owned by Oak Cliff developer Jim Lake Companies, was destroyed by fire in 2019.
In 2022, OHT Partners, a Texas-based multifamily development, construction, and investment firm that builds luxury apartment communities throughout the state, bought the site with a plan to build apartments.
Founded in 2010, OHT Partners focuses on Class A properties in the Austin, Dallas-Fort Worth, Houston, and San Antonio markets. Hey, that's all of the markets where CultureMap has bureaus! In the DFW area, OHT has built properties in Oak Lawn, East Dallas, Arlington, Garland and Fort Worth.
According to a release, OHT Partners has now begun site work for a 299-unit luxury apartment community on approximately 2.5 acres. The project is set to be complete in 2027, although the first units could open as early as the third quarter of 2026.
Ambassador will offer a mix of units, ranging from 502-square-foot studios to 2-bedroom homes with 1,539 square feet. An "amenity level" in the center of the structure will include a pool that overlooks downtown, an indoor/outdoor club with kitchen, dining spaces, and TVs, plus co-working spaces, a micromarket, dog park & grooming stations, package lockers, and fitness center.
To address the historical significance of the site, OHT Partners and Dallas-based architect firm Corgan worked with the city of Dallas, the Historic Landmark Commission, and local advocacy groups, to create historic preservation guidelines "that adhere to the design language of the original building in a new and elegant form."
Thus, the new building will use architectural details that sync with the original hotel including matching the footprint of one of the two buildings, plus a heightened base, windows, and accent side porch -- all reminiscent of the hotel's design.
Built in 1904, The Ambassador was first The Majestic, and considered to be the oldest luxury hotel still standing in Dallas, luring famous guests like Theodore Roosevelt, William Taft, and Woodrow Wilson.
QOZ
Ambassador is in a Qualified Opportunity Zone (QOZ), a federal program that incentivizes development in designated areas with federal tax incentives under the Tax Cuts and Jobs Act of 2017 - so long as certain conditions are met.
Ambassador marks the fourth QOZ investment for OHT Partners, which previously developed Cactus Rose, Lenox 7th, and EastPoint in Austin. It's also the third investment BluePrint Local, a private equity firm that manages QOZ funds, has facilitated for an OHT project.
BluePrint Local's founder and CEO is Ross Baird, the founder of Village Capital, a venture capital firm that has been a pioneer in supporting entrepreneurs worldwide, and the author of the best-selling book The Innovation Blind Spot.
Baird said he considers OHT Partners a "best in class" multifamily developer and lauds the low-leveraged financial structure for the project combined with the tax benefits of being in an Opportunity Zone -- creating "a unique opportunity for investors that will ultimately bring long-term financial stability to both the project and area."
"Ambassador is exactly why the Opportunity Zone program was designed. It will provide high quality housing in Dallas, a city that has a shortage of 100,000 housing units, and it's part of a much broader plan to reshape the Cedars and downtown Dallas," Baird says, referring to the upgrade of the Kay Bailey Hutchinson Convention Center and potential deck park adjacent to the Ambassador site.
OHT Partners' sister company OHT Partners Construction, will serve as general contractor. Additional players include Spiars Engineering, Inc., United Structural Consultants, Inc., V3 Consulting Engineers, Ink + ORO, Bud Creative, and IBC Bank.
"This is an exciting time for the Cedars neighborhood, and we're honored to contribute to its growth. Ambassador will stand as a cornerstone in the area's continued momentum, and we look forward to what the future holds for the Cedars," says Howell Beaver, OHT Partner's managing director of the Dallas-Fort Worth market.