The building is best known by its iconic red neon Pegasus sign atop the roof. It was originally built in the 1920s as the headquarters for Magnolia Petroleum Co. It’s considered Dallas’ first skyscraper and was the tallest building west of the Mississippi River when it opened in 1922. It was redeveloped into the Magnolia Hotel in 1999. In 2022, the Pegasus sign underwent a $360,000 repair to prevent it from toppling over.

The Dallas Morning News reports Sycamore Development plans to spend $200 million, including property acquisition costs, to buy and redevelop the landmark property at 1401 Commerce St.. Hospitality investor Newcrestimage is the seller.

When the redevelopment is complete, floors four through 16 will be apartments and floors 17 and above will be hotel rooms. The hotel lobby and amenities will be on the first and second floors, and the apartment amenities and lobby will be on the third floor. A new main lobby and guest room tower will be built.

Work is expected to begin in February 2026 and be completed by February 2028.

Curious how Texas’ surging economy, escalating costs, population growth, and shifting demand are shaping multifamily development and investment in 2025? Be there for the Texas Market Outlook discussion at Connect Texas Multifamily, when the industry’s experts break down regional trends, key indicators, and actionable strategies—Register now to gain the edge: www.ConnectTXMF2025.com | EVENT DATE: Thursday, August 28th | VENUE: The Joule, Dallas