Café Madrid, the low-slung tapas bar that has quietly held down the Knox-Henderson strip for decades, is not going anywhere, no matter how many cranes pop up around it. Owner Donica Jimenez says she has no intention of selling to developers, even as a multi-acre makeover rises all around her. The small white building now sits surrounded by steel and glass, overshadowed by a massive redevelopment that will bring towers, hotel rooms and new retail to the neighborhood.
Developers have tried to change her mind. As WFAA reported, they have repeatedly approached Jimenez about buying the parcel and have literally knocked on her door with offers. Jimenez told reporters she bought the building years ago so she would not be priced out, and that so far "no one has made an offer I can't refuse." Owning the storefront, she said, is what allows her to weather rising rents.
The larger redevelopment is a joint venture that includes Dallas-based Trammell Crow Company and other partners and is expected to deliver roughly one million square feet of mixed-use space that will combine residences, offices, retail and a hotel backing up to the Katy Trail, according to The Dallas Morning News. Plans call for a 27-story apartment tower and new public green space that connects directly to the trail. Developers say portions of the project will open in phases.
Jimenez opened Café Madrid in 1990 and, when investment groups began assembling the block years later, she exercised a right of first refusal and bought her building, a move that, according to the Dallas Observer, kept the restaurant from being displaced. The Observer notes that longtime staff, regulars and Jimenez’s community work all factored into her determination to stay. The cafe’s mix of tapas, live music and sidewalk seating has helped make it a neighborhood fixture.
Why One Storefront Matters
Preservationists and diners argue that independent spots like Café Madrid give Knox Street its personality, while developers counter that the new plan will boost pedestrian traffic and attract more high-end retail, The Real Deal reported. Supporters of the redevelopment say the park and trail connection built into the project could send new customers straight to street-level restaurants, even as larger chains move in around them.
Timeline And What’s Next
The development's main tower reportedly topped out in February, and developers say they expect to begin delivering portions of the project in summer 2026, per WFAA. The buildout is set to open in phases, with retail and office spaces arriving after the first residential units. City approvals and leases still need to be nailed down for many of the ground-floor tenants.
The shift has already pushed some longtime operators out. Chuy’s closed in 2025 ahead of the redevelopment, a reminder that owning the property, not just renting it, can be the deciding factor for small operators, The Dallas Morning News reported. For businesses that do not own their buildings, rising rents and land assemblage can shrink options fast.
For now, Jimenez says she is genuinely excited about new businesses coming into the area while she keeps serving the neighborhood from the same address, according to the Dallas Observer. Café Madrid’s long-term future will likely depend on whether other independent operators can find similar ways to buy in or secure long-term leases as Knox Street continues to transform.
