Dallas Local News

Dallas developer plans to purchase and redevelop the historically notable Cabana Hotel into budget-friendly apartments

Photo of Lillie Fuller Lillie FullerMay 29, 2023

Dallas, Texas – Local developer Zachary Krochtengel has revealed plans to purchase and redevelop the historically notable Cabana Hotel into budget-friendly apartments. This news follows his recent bid to construct a mixed-income housing project, Cypress Creek at Forest Lane, in the Lake Highlands area. Despite encountering resistance due to existing deed restrictions, this venture has been repeatedly reworked, finally landing a spot for a council vote in June.

The anticipated conversion of the Cabana Hotel is expected to meet less resistance compared to the Cypress Creek project. This iconic 10-story edifice, located on Stemmons Freeway, has been unoccupied and stripped bare for several years.

In an exclusive conversation with CandysDirt.com, Krochtengel shared his enthusiasm about breathing new life into the significant structure while simultaneously contributing to the mixed-income housing demand in the Design District. He hinted at the distinct design elements of the Cabana Hotel which he believes will bring forth unique apartments offering an unrivaled view of downtown Dallas.

Krochtengel also revealed his intention to seek Low-Income Housing Tax Credits to fund this venture. A proposal unveiled last Friday to the Urban Design Peer Review Panel envisages demolishing the existing parking garage, constructing new additions, and enhancing the pedestrian connection along Slocum Street at the rear of the property.

Constructed in 1962 by Jay Sarno, a notable figure in the world of Caesar’s Palace, the Cabana Hotel is known for its vibrant past, filled with celebrity-filled parties featuring The Beatles and Led Zeppelin. It was later repurposed into a county jail before being purchased by Mehrdad Moayedi’s Centurion American Development Group in 2017 for a reported $8.1 million.

While Sycamore Strategies is in contract to buy the property, the final acquisition price remains undisclosed.

Photo of Lillie Fuller Lillie FullerMay 29, 2023
Photo of Lillie Fuller

Lillie Fuller

Lillie's love of journalism began at a young age, when she would eagerly devour every newspaper she could get her hands on. As she grew older, her fascination with the power of the press only intensified, and she decided to pursue a career in journalism. Over the years, Lillie has honed her skills and become an expert in her field. She has worked for some of the most respected names in the business, including The New York Times, The Washington Post, and CNN. Her work has been widely recognized and celebrated, earning her numerous accolades and awards.

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