Vacant North Texas hospital could become $60M housing, retail hub
A sale could turn the vacant hospital into a mixed-use private development.
Written by Molly Wilhelm, Trending Reporter
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A long-vacant North Texas hospital once slated for homeless housing now looks to have a future in retail and housing.
Dallas officials confirmed to Chron that a deal is in the works to sell the Oak Cliff hospital at 2929 S. Hampton Road, located about 8 miles southwest of downtown. The city plans to sell the 14-acre property to Duncanville-based developer Options Real Estate.
Roughly $60 million could be spent to construct a "mixed-use, multigenerational village," on-site, Monte Anderson, president and CEO of Options Real Estate, told Chron on Tuesday.
"I like to call it gentlefication, I describe that as…the locals get the wealth," Anderson said, calling himself an opportunist who looks to redevelop properties that can fill in neighborhood gaps.
From hospital to homes
Anderson said he's been eyeing the property since roughly 2018, drawn in by the existing hospital structures and its location between two parks.
"We plan to retrofit and use all existing buildings. The buildings are in good condition," Anderson said, adding that the hospital's layout, with bathrooms already in each room, could make conversion into apartments easier.
Four buildings onsite would be transformed into a mix of apartments, for-sale townhomes and small retail and office buildings.
"That is the current plan, though it is subject to change (but unlikely)," Anderson wrote. "We hope to build affordable units that will not require any subsidies, though I can't guarantee anything at this point."
Initial plans were part of the public submittal process and will evolve over the next 90 days. The CEO of Options Real Estate said his company would not proceed with anything the overall community opposes.
"We have worked closely with (the community) from day one and intend to continue that collaboration until the end," he added.
Details of the sale
City Council declared the property surplus and entered into a purchase and sale agreement with Options Real Estate Investments Inc., effective Friday, the city told Chron in a statement.
"The agreed purchase price is $6,875,000," a City of Dallas spokesperson said. "Under the agreement, the buyer has a 90-day due diligence period to inspect the property and conduct any necessary evaluations."
The buyer also has the option of extending the due diligence period by 60 days for a fee.
"Closing must occur on or before 120 days from the expiration of the inspection period, but no later than April 30, 2027," the city spokesperson said.
Options Real Estate may opt to extend the due diligence period based on their findings.
"We need to thoroughly inspect the underground utilities and easements," Anderson said.
What happened to the homeless housing plan?
The Oak Cliff hospital closed in 2014 and has largely remained vacant ever since. The City of Dallas purchased the property in January 2022 for $6.5 million, according to NBC 5.
Officials planned to use the site as permanent supportive housing for the homeless—a proposal met with significant backlash. Some residents raised concerns about the shelter's proximity to a school, a public library and the nearby Kiest Park, according to WFAA.Ultimately, plans for that project were dropped.
However, it appears funds from the sale will still be invested into alternative homelessness housing solutions.
At an April Housing and Homelessness Solutions Committee meeting, officials said they were working to sell the 2929 S. Hampton Rd. property "with the intent to reinvest any proceeds into additional housing for residents experiencing homelessness."
