DALLAS – (Realty News Report) – A joint venture of Granite Properties and the Highwood Properties REIT acquired the 557,000-SF McKinney & Olive office tower/mixed-use development near Klyde Warren Park in Uptown Dallas.
The Klyde Warren Park, built on a deck above a depressed freeway, similar to what is proposed in downtown Houston, has been a magnet for new high-rise development.
Completed in 2016, the McKinney and Olive was developed in by Crescent Real Estate, a Fort Worth-based firm led by John Goff, and J.P. Morgan Asset Management.
Granite/Highwoods paid about $395 million for the project, which includes 507,000 SF of office and 50,000 SF of retail, according to Commercial Property Executive.
Designed by the award-winning late architect Cesar Pelli, the 20-story office tower is 99 percent leased with tenants including Cushman & Wakefield, Prologis, Saatchi & Saatchi, and Sidley Austin LLP. Retail tenants include Del Frisco’s Double Eagle Steak House, Starbucks Reserve Roastery, Doc B’s Fresh Kitchen, Roti Modern Mediterranean, Mixt, Dry bar, and Cycle Bar.
The project has a one-acre plaza designed by OJB, a landscape architecture firm, which also designed the transformative Klyde Warren Park.
Situated on 3.1 acres, McKinney & Olive is located at 2021 McKinney Avenue with easy access to the Dallas North Tollway and the Woodall Rogers Freeway. The building is adjacent to the Ritz Carlton.
“Granite is delighted to acquire McKinney & Olive with our partners Highwoods,” said Will Hendrickson, Granite Properties’ senior managing director. “We continue to be focused on growing our firm through acquisitions and developments of high-quality projects in the best submarkets, and this building is a very strong addition to our Dallas portfolio.”
Granite will lease the building and handle property management.
“This landmark office tower is consistent with the Company’s long-term plan to develop a strong presence in Dallas,” said Ted Klinck, President and CEO of Raleigh, N.C.-based Highwoods Properties.
Highwoods Properties, is a publicly-traded (NYSE:HIW) REIT focused on office buildings with properties in Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa.
Granite and Highwoods are also developing 23Springs in Uptown, just four blocks from McKinney & Olive. The 26-floor, 626,215 SF office development with two detached restaurant buildings and a public park, will be delivered in the first quarter of 2025.
Andrew Levy and Todd Savage of JLL represented the seller in the McKinney & Olive transaction.
Dec.20, 2022 Realty News Report Copyright 2022.
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Image: Courtesy Granite Properties
File: $395 Million Deal by Granite and Highwood
File: 23Springs $395 Million Deal by Granite and Highwood REIT. Klyde Warren Park