Monday, August 29, 2016

Tower sale in Dallas' Uptown expected to shatter price records

The 17Seventeen McKinney tower is expected to sell for $188 million or
$510 per square foot.
This is  the summer of new real estate records in Dallas.
And a pending building sale in Uptown is expected to set another all-time high sales price.
The 19-story 17Seventeen McKinney office tower has been up for sale for several months.
Dallas-based real estate investor Gaedeke Group has contracted to purchase the building - located on the north side of Woodall Rodgers Freeway - for what will be the highest per square foot price for a Dallas-area office building.
The 6-year-old high-rise is expected to fetch $510 per square foot for the building which is 98 percent leased, real estate brokers who are tracking the deal say.
The 17Seventeen McKinney sale would be even higher than the recent purchase of the 2000 McKinney tower, which sold for an estimated $502 per square foot to German investors.
The 369,000-square-foot 17Seventeen McKinney tower is leased to tenants including Regions Bank, Bain & Co., Huitt-Zollars and Colliers International.
Developer Granite Properties built the office tower, which is part of a one-block complex that includes retail space and the Gables Park 17 apartment tower. Granite Properties officials declined to comment on the pending sale.
Holliday Fenoglio Fowler LP has been marketing the office tower for sale.
Gaedeke Group - which owns other office buildings in the Uptown and Oak Lawn areas of Dallas - competed to buy 17Seventeen McKinney against several other investors including California State Teachers retirement fund, according to a report by Real Estate Alert, a New York-based property investment newsletter.
If Gaedeke Group completes the Uptown purchase as expected, the commercial real estate firm will have top office properties in two of the hottest real estate markets in North Texas.
Gaedeke Group is also building a 14-story office tower in the $3 billion Legacy West development in West Plano. The 327,856-square-foot One Legacy West tower opens at the end of this year at Legacy Drive and State Highway 121.
Written by Steve Brown/Dallas Morning News