Here’s what tenants pay at the Crescent mixed-use tower in Dallas

Crescent Real Estate reacquired 1.3M sf complex for third time

National /
Jun.June 17, 2021 04:30 PM
Crescent Real Estate chairman John Goff and Crescent Court (Crescent)

Crescent Real Estate chairman John Goff and Crescent Court (Crescent)

The following is a preview of one of the hundreds of data sets that will be available on TRD Pro, the one-stop real estate terminal that provides you with all the data and market information you need.

Crescent Real Estate took its name from one of the Texas-based firm’s earliest acquisitions — a mixed-use office complex in Dallas named the Crescent.

The company has managed the 1.3 million-square-foot property in Uptown for decades, but ownership of the three office towers and retail building has changed hands a few times. In March, Crescent Real Estate bought back its 19-story namesake property for the third time, from a group led by JPMorgan Chase.

The $655 million reacquisition was financed with a $465 million senior CMBS loan and $60 million in mezzanine debt from Goldman Sachs and Deutsche Bank, along with an additional equity contribution of $172 million from Crescent.

Rating reports provide an inside look at the complex’s finances and rent roll.

At the time of the latest financing, the Crescent was 87 percent leased to law, financial and technology firms, with no single tenant taking up more than 8 percent of the rentable space, according to a DBRS Morningstar report.

The largest tenant at the complex with 77,000 square feet, law firm McKool Smith, was founded in Dallas in 1991 and moved to the Crescent soon after. The second and third largest office tenants are also law firms — New York-based Weil, Gotshal & Manges and Miami-based Holland & Knight.

Stephens Real Estate, which has 37,000 square feet, pays among the highest gross rents per square foot at $58.24, according to the report.

Sitting on one of the larger parcels in the submarket, the Crescent is “an iconic property and the focal point of the Uptown district,” DBRS analysts wrote in their rating of the associated CMBS securitization.

The three-story retail building at the north end of the complex, known as the Courtyard Building, is anchored by upscale bridal salon Stanley Korshak, which pays 6.5 percent of sales in lieu of base rent. The salon “typically performs well because of the adjacent Crescent Court Hotel, which includes luxury wedding and event space,” according to DBRS.

The three 18- and 19-story interconnected office towers, known as the Crescent Towers, feature ground-level retail as well. The five-story, 226-room Crescent Court Hotel is also owned by Crescent Real Estate but is not part of the loan collateral.

The complex has weathered the pandemic well, with rent collections standing at 98 percent as of March. Fewer than 5 percent of tenants, mostly retailers, have requested rent relief, which accounts for less than one percent of revenue.

With $3.5 billion in assets under management and $5 billion in purchasing power in its two Invitation Funds, Crescent Real Estate is an active player in the Uptown area.

Fort Worth-based Crescent Real Estate completed the 530,000-square-foot, 20-story office tower at McKinney & Olive in 2016, and last year wrapped up the redevelopment of 200,000 square feet of office space at 2401 Cedar Springs.





    Related Articles

    arrow_forward_ios
    Liz Nunan, chief executive officer, Houlihan Lawrence (Houlihan Lawrence, iStock)
    These are Westchester’s biggest brokerages
    These are Westchester’s biggest brokerages
    Douglas Elliman Executive Chairman Howard Lorber (Elliman)
    These are Long Island’s top brokerages by agent headcount
    These are Long Island’s top brokerages by agent headcount
    Here’s what tenants pay (and make) at the Westchester mall in White Plains
    Here’s what tenants pay (and make) at the Westchester mall in White Plains
    Here’s what tenants pay (and make) at the Westchester mall in White Plains
    Long Island’s office market has slumped as businesses change workplace strategies, an Avison Young report finds.
    Long Island office market on pace for dreadful year: report
    Long Island office market on pace for dreadful year: report
    Josh Baumgarten (left) and Adam Schwartz, co-CEOs and co-Chief Investment Officers of Angelo Gordon with 2 Huntington Quadrangle, Melville, 6 and 8 Corporate Center Drive in Melville (Angelo Gordon, We’re Group)
    Here’s what tenants pay in Angelo Gordon’s Long Island office portfolio
    Here’s what tenants pay in Angelo Gordon’s Long Island office portfolio
    In Greenwich, CT, office demand has popped, lifting rents and spurring bidding wars for choice spaces. (iStock)
    Greenwich targets NYC’s office workers as leasing surges 312%
    Greenwich targets NYC’s office workers as leasing surges 312%
    Mack-Cali’s CEO Mahbod Nia with 99 Wood Avenue South, 101 Wood Avenue South in Iselin, NJ, and 333 and 343 Thornall Street in Edison, NJ (Google Maps)
    Mack-Cali Realty sells Metropark complex for $254M
    Mack-Cali Realty sells Metropark complex for $254M
    (iStock)
    Long Island employers see lasting shift toward remote working
    Long Island employers see lasting shift toward remote working
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...