Nine months after opening its Y’all Street regional hub in Dallas, Scotiabank has purchased the 15-story office tower in which it resides.
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An affiliate of the Canadian financial institution purchased the more than 350K SF Victory Commons One building in the Victory Park district, according to The Dallas Morning News. Scotiabank, the operating name of the Bank of Nova Scotia, signed a 100K SF lease in the tower at 2601 Victory Ave. late last year and announced plans to invest $60M into it over the next three years.
The building’s seller was a partnership of Hillwood and Affinius Capital. Scotiabank did not disclose the price it paid for the property, but the Dallas Central Appraisal District lists a $150M taxable value for the tower.
JLL represented the sellers after Hillwood Urban hired the firm this summer to advise on a possible sale or refinancing of the trophy office building.
The June listing for the 4-year-old tower stated that the building was 93% leased with a 12.2-year weighted average lease term. Insurance brokerage Lockton also occupies three floors.
Scotiabank received nearly $14M in grants from Dallas and the state, as well as a 10-year city property tax abatement, to choose North Texas for its regional hub.
The Victory Commons One tower is adjacent to the American Airlines Center and near Goldman Sachs’ huge new office campus.
Goldman Sachs and Scotiabank are just two of the banking giants that have turned the metro into a major financial hub.
The latest financial titan to come to the region is Morgan Stanley, which is set to invest nearly $700M to establish a new regional hub in Dallas. The financial services company signed a temporary lease this summer for 255K SF at Fountain Place in Downtown Dallas, which it will use while it awaits construction of a new 700K SF high-rise at 2401 McKinney Ave. in Uptown.
Y'all Street has also turned Uptown Dallas into a premier office market in the region, commanding North Texas’ highest rents and accounting for more than 90% of its development pipeline. Rents for the newest trophy office space in Uptown have grown by more than 30% over the last two years as companies seek the highest-quality product available in the submarket.
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