From sale-leasebacks of corporate campuses to the repositioning of trophy assets, the last year has seen billions of dollars of office acquisitions. Foreign and local capital seems to agree that Texas, specifically the Dallas metro area, is a safe haven for investments.
Here are the six highest-value office transactions in the state over the last 15 months — all in DFW — according to research from Yardi and Commercial Café.
6. 2000 McKinney Ave. in Dallas for $221M
In a joint venture, Lincoln Property and the Abu Dhabi Investment Authority sold 2000 McKinney to Union Investment in August. The 21-story, 448K SF Uptown tower overlooks Klyde Warren Park and was 98% leased at the time of the sale. Germany-based Union Investment bought the property as a part of its strategy to focus on U.S. investments.
5. KPMG Plaza at Hall Arts in Dallas for $250M
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Hall Financial Group sold the newly completed 500K SF KPMG Plaza office building to Civitas Capital Group to raise capital for a forthcoming phase of Hall Arts. At build-out, the five-acre development will have a luxury condo high-rise with an attached boutique hotel. Adding to the renaissance of the Arts District, Hall Arts features the Hall Texas Sculpture Walk with local Texas artwork.
4. Chase Tower in Dallas for $285M
As a part of Hines’ unanimous vote to liquidate and dissolve Hines REIT, the firm sold an iconic Dallas skyscraper, Chase Tower, to Fortis Property Group in August. The sale of the 1.3M SF tower at 2200 Ross Ave. in downtown Dallas was announced shortly after Hines sold nearby One Victory Park. Fortis promised to pump additional capital into the property for increased amenities. As a trophy asset at the helm of the Dallas Arts District, its capital improvements mirror renovations happening throughout the district.
3. 600 and 700 Hidden Ridge in Irving for $344M
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In August, Mesirow Financial spent $344M to buy Verizon’s regional headquarters in a sale-leaseback. Verizon then inked a 20-year lease for the 51-acre property. When Mesirow purchased the asset, CEO and chairman Richard Price said the company has more plans to acquire single-tenant properties nationwide. Verizon has more than 8,000 employees at 600 Hidden Ridge.
2. Campus at Legacy West in Plano for $353M
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In the first few days of 2017, JC Penney completed a sale-leaseback with Dreien Opportunity Partners for the retail giant’s 1.8M SF project now known as Campus at Legacy West. Though the sale likely gave Penney more financial options, the retailer has since said it will close 138 retail stores this year. Dreien is spending $60M to renovate the property and put the surrounding 45 acres back on the market. JC Penney leased back about 65% of the property that it has occupied since 1992.
1. CityLine I, II, III and IV in Dallas for $825M
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In November, Corporate Properties Trust I bought State Farm’s campus at CityLine in Richardson in Texas’ highest-dollar office transaction for 2016. Transwestern Investment Group and Seoul-based Mirae Asset Global Investments partnered to buy the 2.2M SF campus from developer KDC as a long-term investment with a stable yield. More than 8,000 employees work out of the insurance giant’s four-building campus.
