DALLAS – Hines REIT, which is liquidation mode, has sold its 55-story Chase Tower in downtown Dallas for $273 million.
The 1.3 million SF tower, built in 1987, was sold to the New York-based Fortis Property Group.
(Hines just sold another building in downtown Dallas – its 17-story One Victory Park. And the Hines REIT just announced the sale of seven West Coast buildings to Blackstone Real Estate for $1.2 billion. In fact, the entire Hines REIT portfolio is being liquidated.)
Fortis has engaged Stream Realty Partners to lease the Chase Tower, which is 76 percent leased. Jonathan Landau, CEO of Fortis, said the firm plans to make additional improvements to Chase Tower and improve amenities and food service. Fortis also owns the Harwood Center building in Dallas.
One of the most recognizable buildings on the Dallas skyline, the Chase Tower, designed by Skidmore Owings & Merrill has a rounded top and a unique rectangular “keyhole” near the top of the building. The tower, 2200 Ross Avenue, is in the Dallas Arts District.
“We are excited about the fact that we’ve got a known quality developer coming and taking that building,” says John Crawford, CEO of the Downtown Dallas Inc. economic development organization. “He’s putting more money into the building to update it and that will allow it to continue to be one of the major Class A buildings downtown.”
“We are thrilled to add this signature building to our Dallas portfolio,” said Fortis Property Group’s Landau. “Hines did a terrific job updating this trophy asset and we have plans to further upgrade Chase Tower in a manner that will position it on par with the newer Class A Uptown office properties.”
Hines Senior Managing Director Rob Witte commented, “Hines has enjoyed its involvement with this iconic property in the Dallas CBD, and we look forward to committing more capital to the Dallas/Fort Worth area. We continue to search for other investment opportunities in the area, including Victory Center, our 455,000-square-foot office tower which is ready to break ground.”
August 10, 2016 Copyright Realty News Report 2016