Wednesday, August 10, 2016

German investor completes possible record purchase of Uptown Dallas building

The 2000 McKinney office tower at McKinney and Olive in Uptown sold
for an estimated $500 per square foot. 
A German investor has completed what's expected to be a record buy in Dallas' booming Uptown district.
Union Investment Real Estate of Hamburg has paid an estimated $500 per square foot for the 21-story 2000 McKinney Avenue office tower.
The 9-year-old office building overlooks Klyde Warren Park and is almost 98 percent leased to tenants including Texas Capital Bank, Benchmark Title and Lincoln Property Co.
Union Investment said it bought the 448,000-square-foot building for one of its real estate funds.
The buy is the German firm's third major purchase in the U.S. this year - acquisitions that add up to almost $1 billion.
"At the start of 2016, we announced that we would be focusing our investment activity on the strong US market, and we have done precisely that," Martin Brühl, a member of the management board at Union Investment Real Estate, said in a statement. "We have a similar level of resources available to further expand our portfolio in the U.S."
The more than $220 million sale of 2000 McKinney is believed to set a record for per square foot office purchases in North Texas.
The tower was sold by owners Lincoln Property and a foreign investment group. Eastdil Secured marketed the high-rise to potential buyers.
Metzler Real Estate of Seattle advised Union Investment in the purchase. Exact terms of the sale were not disclosed but multiple real estate brokers confirm the all time high price.
"2000 McKinney occupies a truly core location and also boasts high construction standards," Matt Scholl, head of Investment Management Americas at Union Investment said. "We are always happy to consider properties of this quality.
"In addition, the Dallas office market has excellent prospects going forward."
Office rents for towers in Uptown have topped$50 square foot, making the area one of Texas' most expensive real estate market.
Another office tower at 2100 McKinney last year traded for about $450 per square foot.
Union Investment owns properties in 24 countries and has spent more than $20 billion on real estate since 2007.
Union Investment and Metzler last year paid $440 million a 36-story office skyscraper in downtown Houston.
Written by Steve Brown/Dallas Morning News