Granite’s Historic Dallas Building: Houston Investor Buys

In Dallas, Granite Properties has sold its historic West End Dallas office building to DealCo, a Houston-based investment firm.

Cushman & Wakefield represented Granite Properties in the sale of Factory Six03, a 215,111-SF creative office building that was redeveloped by Granite.

Originally constructed in 1903 as the headquarters of the Brown Cracker and Candy Company, Factory Six03 is listed on the National Register of Historic Places and designated a City of Dallas Landmark. Granite Properties led a comprehensive redevelopment of the property between 2015 and 2017, preserving the building’s original brick, timber and rooftop water tanks while modernizing its systems and adding amenities including a rooftop lounge, outdoor plaza, large conference center and coworking space operated by The Common Desk.

Cushman & Wakefield’s Todd Savage, Russell Ingrum, Jared Chua, Kelsey Shebay, Matt Murphy, Cole Sutter, and Kiana Nemati represented Plano-based Granite in its transaction with DealCo, a Houston-based investment firm.

“The sale of Factory Six03 closes against a backdrop of accelerating momentum in the Dallas/Fort Worth office market,” said Savage, Cushman & Wakefield Executive Managing Director. “DFW posted its sixth consecutive quarter of positive net absorption at mid-year, and average asking rents climbed to a new all-time high. Dallas also led all U.S. markets in Class A absorption growth over the past year, outside of Midtown Manhattan, and the metro continues to be ranked the nation’s top corporate relocation market and the fastest-growing metro in the country. That combination of tightening supply, record pricing and sustained demand underscores what a compelling investment Factory Six03 is.”

Located at 603 Munger Ave. the property is 78% leased to a roster of high-credit tenants, anchored by Sam’s Club and Blue Cross Blue Shield.

40 Restaurants Nearby

The building is in one of Dallas’ most walkable submarkets with more than 40 dining options within a one-mile radius. Factory Six03 is positioned near significant near-term growth in the surrounding Uptown market, including the $700 million Goldman Sachs NorthEnd campus and the emergence of Y’all Street.

The buyer, DealCo, is led by Jon Deal. The firm specializes in adaptive re-use of older buildings in the urban core. Deal, co-developer of the Sawyer Yards redevelopment, has won four Good Brick Awards from the Greater Houston Preservation Alliance.

Granite Properties recently sold off its Eldridge Place, a three-building office campus totaling 829,000 SF in Houston’s Energy Corridor. The sales price was $155 million or $187 per SF, as stated by Real Estate Alert. Cross Ocean Partners and Houston-based Fuller Realty purchased Eldridge Place, which is located on North Eldridge Parkway at Memorial Drive.

Last year, Granite Properties sold its 2925 Briarpark, a 134,000-SF office building in Houston’s Westchase District.