Monday, February 06, 2017

Uptown Building Is Sold


Uptown building is sold

Canadian firm buys 2525 McKinnon, near high-profile buildings

Holliday Fenoglio Fowler
2525 McKinnon is across the street from the Rosewood Crescent Hotel and the McKinney & Olive tower. Brokers say it sold for about $47 million, or over $400 per square foot.

A Canadian investor has planted its flag in Dallas’ booming Uptown district with the purchase of a high-profile property.

Vancouver-based City Office REIT Inc. bought the 2525 McKinnon office building at Cedar Springs Road and McKinnon Street. The eightstory granite building is across the street from the Rosewood Crescent Hotel and the new McKinney & Olive tower.

Built in 2003, the 112,000square-foot McKinnon building is almost fully leased, with tenants including the Retail Connection, Staffelbach, Hunt

Mortgage Group and Aramark Services. Real estate brokers say the building sold for about $47 million, or over $400 per square foot.

The high-rise was sold by Seattle-based Talon Private Capital, which has owned the building for about four years. Holliday Fenoglio Fowler LP marketed the building for sale.

Although smaller than some of the other office buildings in the area, the property attracted a lot of attention from potential buyers because of its prime location.

Uptown has seen a string of office sales in the last year that have raised the price bar in Dallas’ office market.

The 21-story 2000 McKinney Avenue office tower was sold to German investors for $220 million, or $504 per square foot. The 19-story 17Seventeen McKinney tower fetched $188 million in a sale to Gaedeke Group — about $510 per square foot. The 17story One Victory Park tower went for about $412 per square foot, an estimated $180 million.

All of those buildings were much larger than the 2525 McKinnon property.


Steve Brown/Dallas Morning News