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Texas

Crescent scores with $400M sale of Uptown Dallas tower

The Fort Worth-based firm built the 21-story high-rise for $225M in 2016

McKinney & Olive at 2021 McKinney Avenue in Dallas with Will Hendrickson of Granite Properties and John Goff of Crescent Real Estate (Granite Properties, Crescent Real Estate, McKinney & Olive)
McKinney & Olive at 2021 McKinney Avenue in Dallas with Will Hendrickson of Granite Properties and John Goff of Crescent Real Estate (Granite Properties, Crescent Real Estate, McKinney & Olive)

McKinney & Olive, one of Uptown Dallas’ premiere high-rises, just changed hands.

Plano-based Granite Properties and North Carolina real estate investor Highwoods Properties plunked down more than $700 per square foot to acquire the Uptown Dallas complex, which includes its adjoining retail center and 1-acre plaza.

The partners will own the more than half-million-square-foot property in a 50-50 joint venture, according to the Dallas Morning News. With almost $400 million in total investment, the deal has set a new price point for properties in the area just north of downtown.

The 21-story tower held its grand opening in 2016. It cost Fort Worth-based Crescent Real Estate and partner J.P. Morgan Asset Management $225 million to develop.

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McKinney & Olive is 99 percent leased to tenants including Saatchi & Saatchi, Sidley Austin, Foley & Lardner, McKinsey & Co., Cushman & Wakefield and CrossFirst Bank. Retail tenants in the project include Del Frisco’s Double Eagle Steak House, Starbucks Reserve Roastery, Doc B’s Fresh Kitchen, Roti Modern Mediterranean, Mixt, Drybar and Cycle Bar. The building’s office and retail tenants pay some of the highest rents in the city, according to the DMN.

Uptown Dallas is a favorite of North Texas commercial investors and developers. One of the neighborhood’s most anticipated high-rises, a planned headquarters for CBRE, was set to go up on 2401 McKinney Avenue, just two blocks from McKinney & Olive. However, it’s been almost a year since a planned groundbreaking, and developer Trammell Crow has not begun construction. At this rate, the development is unlikely to meet the deadlines to qualify for the city’s proposed tax incentive agreement.

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— Maddy Sperling

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Commercial Real EstateCrescent Real Estate