Highwoods JV Pays $395M for Dallas Tower
Completed in 2016, McKinney & Olive features office and retail space.
Highwoods Properties and Granite Properties have acquired a 557,000-square-foot mixed-use property in Uptown Dallas. The 50/50 joint venture’s total investment is anticipated to be $394.7 million, including $2 million in transaction fees and $1.7 million in asset improvements.
McKinney & Olive features 507,000 square feet of office space space and 50,000 square feet of retail. Completed in 2016, the property is currently 99 percent occupied.
According to Commercial Edge data, current tenants include Trive Capital, Team One, CrossFirst Bank, Prologis, Cushman & Wakefield, McKinsey & Co. and Ankura Consulting Group.
The Class AA tower, standing 21 stories, features a fitness center, a conference center, a rooftop garden, five elevators and some 1,326 parking spaces, the same data shows.
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Located at 2021 McKinney Ave., tenants are within walking distance to Klyde Warren Park and the Dallas Arts District. A one-acre piazza by the building offers green space. The Dallas North Tollway, Interstate 75, Woodall Rogers Freeway and public transportation options are in proximity to McKinney & Olive, offering access to the larger Dallas and Texas area.
Situated four blocks from McKinney & Olive is 23Springs, another joint venture development between Granite Properties and Highwoods Properties. The asset is a 626,000-square-foot mixed-use office and retail project. Expected to deliver in 2025, the Class AA building is 26 stories tall.
In prepared remarks, Ted Klinck, president & CEO of Highwood Properties, said McKinney & Olive has good net operating income upside potential, with rents estimated to be 35 percent below market rate. Next year, the asset is anticipated to generate a cash NOI of $22 million.