Developers have completed the purchase of an historic hotel on the edge of downtown Dallas.

Centurion American Development Group paid $8.1 million for the 55-year-old former Cabana Motor Hotel on Stemmons Freeway.

The 10-story hotel across the highway from Victory Park has been vacant for years. The building - once one of Dallas' most fashionable accommodations - was constructed by Las Vegas developer Jay Sarno, who also built Caesar's Palace and Circus Circus.

Centurion American plans to renovate the hotel and build a high-rise apartment building next door.

"I'm going to start cleaning it up next week," said Centurion American CEO Mehrdad Moayedi. Real construction will start in May or June of next year."

Centurion American just finished a $250 million renovation of the historic Statler Hotel on Commerce Street. The 19-story hotel has been converted into a mix of apartments, retail and hotel rooms.

CBRE's John Alvarado, Peter Jansen, Stan McClure and Lawrence Gardner brokered the Cabana sale with Scott Lake and Jake Milner of Davidson & Bogel Real Estate LLC.