Headline: The National Building Heads to Foreclosure: Fate of Six Dallas Restaurants Confirmed
Despite the impending foreclosure of The National, the 52-story luxury tower in downtown Dallas, its six resident restaurants are set to remain open without interruption.
Todd Interests, the developer behind the $460 million renovation of the historic skyscraper at 1401 Elm Street, confirmed it will not contest the foreclosure initiated by lender Starwood Capital Group. The foreclosure process, expected to finalize next month, stems from approximately $230 million in outstanding debt, exacerbated by elevated interest rates and a dip in apartment occupancy below 80%.
While changes in building ownership often spark concerns regarding tenant stability, the hospitality venues within The National have issued assurances that operations will continue as usual. The leases for the dining establishments are expected to be honored by the incoming ownership.
Restaurants Continuing Operations
The building houses six distinct dining concepts, ranging from quick-service to high-end dining, all of which remain open:
- Monarch: The wood-fired Italian steakhouse on the 49th floor.
- Kessaku: A Japanese sushi and cocktail lounge located on the 50th floor.
- Catbird: A cocktail bar and small-plates venue on the 10th floor.
- Little Daisy: A French-American bistro situated on the 9th floor.
- White Rhino Coffee: A coffee shop on the ground floor.
- Chick-fil-A: A quick-service restaurant on the ground floor.
Maple Hospitality Group, which operates the tower’s crown jewel venues, Monarch and Kessaku, addressed the situation directly. “There is no impact to day-to-day operations, and our team remains committed to delivering the elevated dining experience our guests have come to expect,” stated managing partners Danny Grant and Jim Lasky. “As we mark five years in Dallas, our commitment to the community remains steadfast.”
Financial Background and Context
The foreclosure marks a significant shift for one of Dallas’s largest adaptive reuse projects. The National, formerly the First National Bank Tower, sat vacant for a decade before reopening in 2020 following the largest urban restoration in the city’s history. The project utilized $100 million in historic tax credits and $50 million in tax increment financing.
Shawn Todd of Todd Interests cited the current economic climate—specifically high interest rates and softening downtown property values—as the primary drivers for the default. “With our debt balance, the interest rate environment, and property values downtown… we don’t see a path to us recouping our remaining equity,” Todd stated, noting that this is the first time his firm has lost money on a project in its 35-year history.
Starwood Capital Group is expected to assume control of the property in February. Industry analysts note that in commercial foreclosures of this scale, lenders typically prioritize maintaining high-value tenants to preserve the asset’s value, making the eviction of successful restaurants unlikely.
