Dallas, Texas, February 6, 2026
The National, a 52-story mixed-use tower in downtown Dallas, has been repossessed by Starwood Property Trust after a foreclosure auction. The building’s owner defaulted on a $245 million loan, highlighting the struggles of commercial real estate in Texas. While this may seem disheartening, Dallas continues to show resilience with many local businesses thriving despite the challenges. This foreclosure signifies broader trends in distressed properties across the state but presents opportunities for community engagement and revitalization.
National Skyscraper in Dallas Faces Foreclosure
Financial Struggles Amidst a Resilient Dallas Economy
Dallas, Texas – A significant event unfolded in the heart of downtown Dallas as The National, a prominent 52-story mixed-use tower, was repossessed by its lender, Starwood Property Trust, following a foreclosure auction held on February 3, 2026. This foreclosure signifies not just a setback for the building’s owner, Todd Interests, which defaulted on a $245 million loan, but also highlights the broader challenges facing commercial real estate in Texas.
This situation may seem disheartening, but it is essential to consider the resilience of local entrepreneurs and businesses. While The National struggles, many small businesses in Dallas continue to innovate and thrive, demonstrating the determined spirit of the city’s economic landscape. Dallas has a reputation for fostering entrepreneurship, and with reduced regulation and support for private investment, there remains significant potential for business growth in various sectors.
Background on The National Skyscraper
The National, formerly known as the First National Bank Tower, has been a landmark in Dallas since its completion in 1965. After undergoing a substantial $460 million redevelopment finished in 2020, the building was transformed into a mixed-use complex. It features the luxury Thompson Dallas Hotel, 324 apartments, 37,000 square feet of office space, and 43,000 square feet of retail space. Despite these extensive renovations and expectations for success, the financial viability of The National has proven elusive.
The Signs of Distress in Texas Commercial Real Estate
The foreclosure of The National is not an isolated incident; it fits into a broader narrative of distressed properties across Texas. The commercial real estate landscape in the state has experienced significant turmoil, with total commercial real estate debt reaching over $800 million. The increase in distressed properties underscores growing pressures property owners and stakeholders are facing, forcing them to navigate challenging economic waters.
Implications for the Dallas Economy
This foreclosure has implications beyond the building itself. It serves as a reminder of the risks associated with substantial real estate investments, particularly in volatile economic conditions. However, it also presents an opportunity for new ownership to implement innovative solutions that could revamp the space. The potential revitalization of The National could mirror the broader trend of recovery seen in the Dallas economy, where many entrepreneurs are finding creative ways to adapt and thrive.
Future Prospects for Commercial Real Estate
While the closure of The National is certainly a setback, all is not lost for Dallas’s commercial real estate market. With ongoing investments in infrastructure and community support for small businesses, the potential for rebound exists. Stakeholders can learn valuable lessons from such foreclosures to better plan future developments and avoid similar pitfalls.
A Call for Community Engagement
Conclusion
The recent foreclosure of The National skyscraper points to significant challenges within Texas’s commercial real estate sector but also highlights the drive and resilience of local businesses and entrepreneurs. As stakeholders reassess strategies to foster sustainability and growth in the Dallas economy, engagement from the community will be crucial. Let us remain committed to supporting our local businesses and initiatives that promote economic development.
Frequently Asked Questions
- What is The National skyscraper?
- The National is a 52-story mixed-use tower in downtown Dallas, formerly known as the First National Bank Tower. It was redeveloped into a luxury hotel, apartments, office spaces, and retail outlets, completing in 2020.
- Why was The National foreclosed?
- The building’s owner, Todd Interests, defaulted on a $245 million loan, leading to the foreclosure auction on February 3, 2026.
- What is the significance of this foreclosure?
- The foreclosure of The National is part of a broader trend of distressed properties in Texas, with commercial real estate debt reaching over $800 million, indicating mounting financial pressures on property owners and stakeholders across the state.
| Feature | Details |
|---|---|
| Building Name | The National (formerly First National Bank Tower) |
| Location | Downtown Dallas, Texas |
| Height | 52 stories |
| Completion Year | 1965 (original); 2020 (redevelopment) |
| Redevelopment Cost | $460 million |
| Current Owner | Starwood Property Trust |
| Foreclosure Auction Date | February 3, 2026 |
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Author: STAFF HERE DALLAS WRITER
The DALLAS STAFF WRITER represents the experienced team at HEREDallas.com, your go-to source for actionable local news and information in Dallas, Dallas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the State Fair of Texas, Deep Ellum Arts Festival, and Dallas International Film Festival. Our coverage extends to key organizations like the Dallas Regional Chamber and United Way of Metropolitan Dallas, plus leading businesses in telecommunications, aviation, and semiconductors that power the local economy such as AT&T, Southwest Airlines, and Texas Instruments. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
