Wednesday, August 10, 2016
Downtown Dallas’ 55-story Chase Tower sells for estimated $285 million
One of downtown Dallas' biggest skyscrapers has a new owner.
The 55-story Chase Tower on Ross Avenue has been purchased by New York-based Fortis Property Group.
The 1.3 million square-foot office tower was expected to sell for about $285 million. Terms of the sale were not disclosed.
"It is always exciting to acquire a premier and iconic skyline office tower," Jonathan Landau, Fortis chief executive officer, said in a statement. "In line with our strategy to purchase best-in-class properties, Chase Tower represents the best of downtown Dallas and the Arts District."
Built in 1987, Chase Tower's previous owner Houston-based Hines, just spent more than $10 million in upgrades on the high-rise.
Property Group won over several bidders that made a pitch for the landmark downtown property. Holliday Fenoglio Fowler LP marketed the tower for sale.
Fortis Property already owns one downtown high-rise - the 36-story Harwood Center on Bryan Street.
Dallas-based Stream Realty Partners has been hired to lease the skyscraper, which is more than 75 percent leased.
Major tenants in the tower include Locke Lord LLP, Norton Rose Fulbright, Deloitte & Touche, JPMorgan Chase, Prudential Insurance and Cornerstone Healthcare Group.
J.J. Leonard, managing director at Stream, said the new owner plans some more changes at the tower.
"We are planning on doing some updates and adding some food options an reorienting the building's front door more toward Ross Avenue," Leonard said. "Hines made some great improvements and took a classic to another level.
"We want to tie it into the Arts District in a big way."
The Chase Tower sale is likely to be one of the largest property purchases in the Dallas area this year.
"This is another very positive step for downtown in terms of the strength of the new ownership and the additional investment that will be made to the property," said John Crawford with the economic development group Downtown Dallas Inc.
Two office properties which are in the market in Dallas' Uptown district are expected to go for higher per square-foot values, but Chase Tower is significantly larger than any other building still up for grabs in North Texas.
In 2015 there were more than a half dozen commercial properties in the Dallas area that sold for more than $100 million.
How does Chase Tower sale stack up?
Recent major commercial property sales in the Dallas area.
Chase Tower - Downtown Dallas
55-story, 1.3 million-square-foot Ross Avenue office tower has just under gone a $10 million redo. Owner Houston-based Hines sold to New York-based Fortis Propety Group. Estimated $285 million.
Other recent sales:
Williams Square, Las Colinas - $330 million
3-building office high-rise office complex with 1.4 million square feet. Purchased by a partnership headed by New York-based Apollo Global Real Estate and Vanderbilt Partners of Chicago. Brokered by HFF.
Galleria Towers - $310 million
3-building, 1.4 million-square-foot office tower complex connected to the landmark Dallas Galleria shopping mall in Far North Dallas. Purchased by California-based CBRE Global Investors in a deal brokered by CBRE.
Comerica Bank Tower - $160 million
Sale of a 90 percent stake in the 60-story, 1.5 million square-foot downtown Dallas office tower to Dallas-based TriGate Partners. Brokered by Eastdil Secured.
2100 Ross - $131 million
33-story,844,000-square-foot high-rise adjacent to downtown Dallas' Arts District. Purchased by a firm headed by Dallas businessman Thomas Dundon. Brokered by Eastdil Secured.
One Dallas Center - $125 million
30-story, office tower on Bryan Street in downtown Dallas was converted to a combination of office space and luxury apartments. Investment partnership headed by Woods Capital bought the 15 floors of office space. The apartments were purchased by a New England public pension investor represented by J.P. Morgan Chase. HFF brokered the sale.
Ross Tower - $124 million
45-story, 1.1 million square-foot downtown Dallas office tower. Bought by a partnership with Austin-based HPI real estate and Second City Real Estate of Vancouver. Brokered by HFF.
Source: Dallas Morning News research
Written by Steve Brown/Dallas Morning News