Thursday, March 12, 2015
Crow Holdings pays $140 million for Dallas Market Center ownership
Dallas-based Crow Holdings is paying $140 million to buy the Dallas Market Center complex along Stemmons Freeway.
The Crow family-owned real estate and investment firm is acquiring sole ownership in the 5 million-square-foot wholesale center complex from Florida-based CNL Lifestyle Properties Inc.
In 2005 CNL – in a deal valued at $249 million – bought majority ownership in the Dallas Market Center, including the World Trade Center, Dallas Trade Mart and a leasehold interest in the Market Hall.
Since then, CNL and Crow Holdings have jointly own the Dallas Market Center. The Crow family’s Market Center Management Co.’s has operated the property – one of the largest wholesale showroom and sales complexes in the country.
CNL said in filings with the Securities and Exchange Commission said that Crow Holdings’ purchase is scheduled to close in the second quarter.
“Our company and its shareholders have been quite fortunate to enjoy a terrific and very constructive relationship with Crow Holdings and Market Center Management Co. through our investment in the Dallas Market Center,” Stephen H. Mauldin, president and CEO of CNL Lifestyle Properties, said in a statement. “As the life cycle of our REIT draws to a close and we move to monetize our holdings, we remain wholly confident in the current and future performance of the Dallas Market Center as an industry leading enterprise.”
Ten years ago CNL paid $71 million in cash and assumed part of a $160 million debt package for its almost 82 percent stake in the Dallas Market Center.
Last October the real estate investment trust refinanced $131.5 million in loans on the property.
“The sale price represents approximately a 36 percent premium over the company’s investment basis,” CNL said in SEC filings.
Last fall CNL notified its shareholders that the REIT planned to sell off properties. It reached an agreement to sell a portfolio of senior housing assets to Senior Housing Properties Trust for $790 million.
Dallas developer Trammell Crow started the market center in 1957 with one small building near Stemmons and Oak Lawn Avenue.
The complex hosts more than 50 markets each year attended by more than 200,000 retail buyers.
“Our family’s business history begins and remains closely tied to Dallas Market Center,” Crow Holdings’ CEO Harlan Crow said in a statement. “We look forward to new opportunities to advance Dallas Market Center’s position as the premier wholesale marketplace in the country.”
Parts of the Dallas Market Center property have been sold to Children’s Medical Center and for the Dallas Proton Treatment Center medical facility.
Steve Brown, The Dallas Morning News