Regent Eyes $406M Refi for Downtown Dallas Tower
The asset last sold for $615 million four years ago.
Regent Properties is set to obtain a $406 million refinancing CMBS loan for the Trammell Crow Center, a 1.2 million-square-foot office high-rise in downtown Dallas, according to a Morningstar | DBRS presale report.
Wells Fargo and Morgan Stanley, two of the largest commercial real estate lenders, will originate the debt. The note features interest-only payments for its five-year duration at a fixed rate of 7.45 percent.
Regent will use the loan to repay previous debt, while an additional $19.6 million in cash equity will fund an upfront reserve and cover closing costs. Wells Fargo held the previous note, which, according to Yardi Matrix, amounted to $424 million.
Trammell Crow Center last traded in 2022 for $615 million. JP Morgan Asset Management sold the tower to Regent, the data provider shows. The 1984-completed, 49-story tower underwent a substantial $182 million capital improvement plan between 2017 and 2019.
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The renovations included the ground-up development of a new structure across the street, featuring a 10-level parking garage and 27,102 square feet of ground-floor retail space. In 2023, a 267-key hotel opened atop the garage. The parking and retail elements are part of the CMBS collateral, while the hospitality portion is not.
The original Trammell Crow Center tower witnessed the modernization of its lobby, the addition of a new gym, ground-floor retail spaces, a tenant lounge and conference rooms, as well as the reconfiguration of the outdoor space.
The tenant roster primarily consists of law firms and financial services companies, having a weighted average lease term of 7.8 years. As of July, the property was 92.8 percent leased.
Dallas’ emergence as a corporate and financial hub
Goldman Sachs is the property’s largest tenant, occupying 24.9 percent of the net rentable area, with an additional 4.2 percent that’s subleased to Galderma Laboratories. Goldman has an early termination option, alongside 10 other tenants, as the firm is developing an 800,000-square-foot campus within walking distance of Trammell Crow Center, with completion expected in 2028.
Regent’s tower is at 2001 Ross Ave., inside Dallas’ Uptown submarket, the highest-priced among all in the Metroplex. Trammell Crow Center is poised to benefit from the demand drivers that continue fueling the market’s position as a major financial and corporate hub under the so-called Y’all Street moniker.
Morgan Stanley is among the banking firms that will expand across Dallas. The firm intends to set up a temporary base at the nearby 1445 Ross Ave. until its $1.3 billion tower at 2401 McKinney Ave. reaches completion in 2031.
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