Fixture of Dallas’ skyline sold for estimated $600M after makeover

Regent Properties bought the 50-story Trammell Crow Center from JPMorgan Asset Management

Regent Properties Eric Fleiss with 2001 Ross Avenue (LoopNet, Regent Properties)
Regent Properties Eric Fleiss with 2001 Ross Avenue (LoopNet, Regent Properties)

JPMorgan Asset Management sold a landmark Dallas office tower to a California investment firm after five years for what local brokers speculate may have been among the highest prices for a commercial property in the city.

The Ross Avenue tower was acquired by Regent Properties, a California-based real estate investor that recently opened a second headquarters in Dallas, according to the Dallas Morning News. The 37-year-old high rise was sold by JPMorgan Asset Management.

While details of the purchase were not disclosed, local brokers contacted by the newspaper estimated the 50-story Trammell Crow Center–plus the retail and garage building across the street– went for more than $600 million. At that price, only last year’s sale of Crescent complex in Uptown for almost $700 million would surpass it.

The Commercial Observer reported in December that Regent Properties was seeking about $424 million in financing for its purchase of the building.

The New York-based company spent upwards of $180 million on upgrades and additions to the property, the paper reported. In partnership with Stream Realty Partners, the management firm oversaw a complete makeover including a renovated lobby, outdoor areas, and an attached parking garage with ground floor retail and restaurant space.

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The cosmetic upgrades to the building apparently helped the 1.2 million-square-foot office attract and maintain tenants over the course of the pandemic, according to Eric Fleiss, CEO of Regent Properties.

“We spent the last year-and-a-half aggressively looking for high-quality assets that institutional owners don’t want to own because of the pandemic,” said Fleiss. “Our strategy has been to buy as many high-quality, well-located Class A urban high-rise buildings as we could.”

The 1.2 million-square-foot office is a “long-standing fixture of the Dallas skyline,” said Fleiss. While the tower needed money for revitalization, he added “there is more work to be done.”

Regent Properties is leaving a considerable footprint in the North Texas real estate market. In 2016, it bought an 84-acre industrial campus between Highway 75 and Legacy Drive that houses tenants like Samsung and Peloton.

The Dallas-Fort Worth area finished right behind New York City in terms of investment property purchases in 2021 with almost $47 billion in properties sold.

[Dallas Morning News] – Maddy Sperling

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