The property developer who purchased The Dallas Morning News’ old headquarters is selling it to a data center provider, all but foreclosing on his original vision of transforming the property into a modern hotel and entertainment complex.

Ray Washburne, a local developer and co-owner of Highland Park Village, told The News in an interview that he had a buyer in contract for the landmark building, located at 508 Young Street — a stone’s throw from the Kay Bailey Hutchison Convention Center, which is slated to undergo a massive overhaul.

Citing confidentiality, Washburne declined to provide a sale price, or the name of the buyer, but said it was “one of the major data companies.” The deal is expected to close in April, he added.

According to Washburne, the new buyer intends to preserve the original News edifice, including the three-story “Rock of Truth” stone facade inscribed with a credo about journalism, but will build a new addition on the back end of the building for its data needs.

Back in 2019, A. H. Belo Corporation sold the downtown campus to Washburne for $28 million, whose original idea was to turn it into a linchpin of the area’s revitalization.

“My intention was to turn in into an entertainment district, and I was waiting to see what would happen, but I couldn’t get anything out of the city,” Washburne said.

In a statement provided to The News, newly appointed Dallas City Manager Kimberly Bizor Tolbert said, “[The city] remains committed to the delivery of the Kay Bailey Hutchison Convention Center (KBHCC) master plan. With that in mind, we will continue to work with all stakeholders to ensure strong collaboration to the benefit of all.”

Washburne originally planned to turn the old newspaper campus into a hotel, entertainment and apartment development, but those ideas were upended by Dallas’ plan to spend at least $3.5 billion on a sprawling new convention center.

A lack of explanation from city officials about that plan prompted him to abandon his aspiration of turning it into Dallas’ analogue of San Antonio’s Pearl District, he told The News.

“My preference was to sell it to the city, or develop an entertainment district, but I never got clarity on what they wanted to do,” Washburne said, citing a lack of understanding about the new convention center’s layout.

“I wanted to do a joint venture, and I spent millions on plans, but I can’t go ahead without a firm understanding of what the city wants to do,” he added.

“Communication has been basically zero… [and] I’m not going to wait another 5 years.”

The convention center reboot “is critical to the long term economic growth of the City,” Bizor Tolbert said.

“We have worked in good faith… but we will not negotiate something as critical as this in the press. We are scheduled to brief City Council on Wednesday during executive session, and will provide additional details as it appropriate,” she stated.

— Staff writer Devyani Chhetri contributed to this report