Granite Properties has secured construction financing as well as an equity partner for the next phase of Granite Place in Southlake, Texas. JLL Capital Markets facilitated the transaction, in which Bank OZK provided a $39 million mortgage, Tarrant County records show.
N5B Capital became Granite’s joint venture partner at Granite Place II at Southlake Town Square, which will encompass 143,500 square feet of Class AA office space in the Dallas-Fort Worth suburb.
N5B Capital will also move its headquarters to the new building, which is expected to be delivered in early 2023.
A deepening partnership
The construction financing marked the fourth deal between Granite and Bank OZK. In April, the lender agreed to occupy four floors within Granite’s 23Springs, a mixed-use development totaling 626,215 square feet in Uptown Dallas. Bank OZK also provided construction financing for the 26-story tower anticipated to come online in March 2025.
The Plano-based developer broke ground on Granite Place II in March, with a development team that includes Corgan Associates as the architect and DPR Construction acting as general contractor.
Taking shape at 601 State St., the five-story story addition is designed to achieve both LEED and Fitwel certifications. The office building will offer an open-air work and meeting area within a landscaped courtyard, a corporate living room and a fitness center, among other amenities.
While the initial phase of the office complex is fully leased, a Granite leasing team including Senior Director of Corporate Leasing Robert Jimenez and Leasing Managers Burson Holman and Elizabeth Fortado is marketing Granite Place II.
The tenant roster at Granite Place I includes Wells Fargo Advisors, Regus and Baker Avenue Wealth Management, according to CommercialEdge. As of April, the office vacancy rate across the Metroplex remained flat month-over-month, plateauing at 17.3 percent, CommercialEdge data shows. The figure remained behind the national average of 15.7 percent.