DALLAS—Vacant office building 1401 Elm in downtown Dallas will become the epicenter of a new, urban downtown.

Olympic 1401 Elm Associates LLC, joint venture between Seth G. Weinstein principal of Olympic Property Partners, a New York-based commercial real estate company, and Bryan Dorsey of Texas-based BDRC, has purchased 1401 Elm.

The 1.5 million-square foot office tower in downtown Dallas will be converted to a mixed-used development to be named Olympic Tower.  The $170 million dollar transformation will begin this spring with the demolition of interior space and heavy construction commences in the fall of 2014.

The City of Dallas awarded the project up to $50 million dollars of Tax Increment Financing (TIF), as it will be a catalyst for accelerated growth in the downtown area.

"This iconic property was ideal to create the opportunity for a unique collaboration between our development group and the City of Dallas," says Dorsey, principal of BDRC.  "The City of Dallas clearly recognizes the impact this dynamic revitalization will have on the downtown Dallas lifestyle by awarding such a significant TIF agreement to the project.  Together we will create something truly great that will bring new life to the area."

The building is unique in that it is well suited for residential due to its design and allows for laying out apartments with lots of light, Weinstein tells GlobeSt.com. Plans for the 52-story Olympic Tower include 500 "open plan" residential units, 70,000-square-foot office component below the ninth floor, ground floor retail and boasts 950 indoor parking spaces.

"The trend toward creating a 24/7 residential and retail environment in downtown Dallas has begun but is moving forward slowly.  This building will represent a quantum leap forward by not only providing over 500 residential apartments, but the addition of retail, beautiful public access areas and restaurants that will cater to the resident's needs not only of this building but for the whole of downtown," adds Weinstein.

Scot Farber of Cushman & Wakefield of Texas represented the seller, 1401 Elm Street Holdings LLC, in the transaction, and assisted in arranging the TIF for the project.