Mirae, Transwestern Sell DFW Campus

State Farm is the sole occupant of all purpose-built office space at CityLine. Image courtesy of Newmark

A partnership between Mirae Asset Global Investments and Transwestern has sold the office component of CityLine, a 186-acre, 2.2 million-square-foot mixed-use complex in Richardson, Texas. Newmark negotiated the deal and provided debt capital markets advisory services for the seller.

The buyer is a real estate investment firm owned by Robert Sarver, Arizona-based businessman and former owner of the Phoenix Suns basketball team, the Dallas Morning News reported. The deal marks one of the largest office transactions so far in 2023.

State Farm currently fully occupies the portfolio’s purpose-built office space. The asset last changed hands in 2016, when the partnership picked it up in an $825 million portfolio deal from KDC, according to CommercialEdge data.

CityLine’s office component consists of:

• A 347,560-square-foot, 13-story Class A office building at 1150 State St.
• A 729,580-square-foot, 21-story Class A office building at 1201 State St.
• A 471,332-square-foot, 15-story Class A office building at 1251 State St.
• A 480,000-square-foot, 12-story Class A office building at 1415 State St.
• A 42,000-square-foot medical office building at 3661 N. Plano Road, CommercialEdge data shows.

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Constructed between 2013 and 2016, the four purpose-built office buildings include 37,500-square-foot floorplates, a total of 36 passenger elevators, 120,000 square feet of retail space across all buildings, along with a total of 6,535 vehicle parking spots, according to the same source. Retail tenants include Good Union, Starbucks and Nestle, among others.

CityLine is close to U.S. Route 75 and President George Bush Turnpike, as well as to downtown Plano, Texas, being 18 miles from downtown Dallas, 27 miles from Dallas-Fort Worth International Airport and within 46 miles of Fort Worth.

Newmark’s team of Vice Chairmen Robert Hill, Gary Carr and Chris Murphy, together with Co-Head, U.S. Capital Markets Kevin Shannon, Vice Chairman Ken White and Divisional Head of International Capital Markets Alex Foshay worked on behalf of the seller. The company’s Vice Chairman David Milestone and Directors Henry Cassiday and Josh Francis provided debt capital and market advisory during negotiations.

Recent deals in DFW

Last month, Newmark brokered another significant office deal in Dallas: M-M Properties sold Plaza of The Americas, a 1.2 million-square-foot property in the city’s downtown. Shelbourne Global Solutions picked up the 25-story office tower. Earlier in March, Reserve Capital Partners and Trinity Investors purchased Crestview Tower, a 262,962-square-foot office building in Irving, Texas. The property last changed hands almost a decade ago.

Year-to-date through September, Dallas-Fort Worth recorded $628 million in office sales, a recent CommercialEdge report shows. Properties changed hands at an average price per square foot of $185, slightly lower than the national average of $198 per square foot.