Biggest Dallas Office Sale Since 2022, Market briefs

In Dallas, Crescent Real Estate, a Fort Worth-based firm led by John Goff, has purchased the 21-story Texas Capital Center in the largest office deal in Dallas in years.

Crescent paid about $292 million or $639 per SF for the 457,000-SF tower, a price that makes it the biggest deal in Dallas since 2022, as stated by the Real Estate Alert.

The seller was Germany-based Union Investment, which bought the building in 2016 for $236 million.

“The landmark transaction demonstrates the high quality of our global real estate portfolio,” Union Investment said in a press release.

The building is 83 percent occupied with Texas Capital Bank as lead tenant. Built in 2008, the tower is located at 2000 McKinney Avenue in the Uptown area near Klyde Warren Park.

Goff was a leader in the development of Klyde Warren Park, a deck park over the depressed Woodall Rogers freeway. The park spawned lots of new upscale development including a building that houses the global headquarters of CBRE.

The main tenant, Texas Capital, reaffirmed its commitment to the building by extending its lease early (adding 16 years) until 2040.

The Surge in Office Investment Deals

The sale of the building highlights a surge in investor activity in Texas.

In Houston, the 801 Travis building, a 222,192-SF office tower in downtown Houston, was recently sold to an investor represented by Morris Chen.

“Recent Houston office buyers have found success by acquiring properties at reset values, giving them flexibility to invest in amenities, tenant improvements, and leasing costs that will drive a higher exit,” said Rick Goings of JLL Capital Markets.

JLL also handled the sale of a 15-story office building at 3555 Timmons in the Greenway Plaza area in Houston’s Inner Loop. DML Capital bought that 227,000-SF building from Novel Office of Dallas.

Last week, Colliers reported another office purchase by Texas Jewelry District LP, which purchased Westheimer Central Plaza, a 182,506-SF office building in the Westchase area. The 10-story building is located at 11200 Westheimer Road, one block west of Beltway 8. The seller was Silver Star CRE LLC.

“This purchase reflects the long-term confidence in the Westchase area,” said James Kadlick of Colliers.