Fort Worth-based Crescent Real Estate has acquired the Texas Capital Center at 2000 McKinney Avenue in Dallas, marking the largest office transaction in the city this year. The deal closed on September 10, according to Dallas County records.
The property, a 457,000-square-foot office tower built in 2008, was sold by Union Investment Real Estate. Although the purchase price was not disclosed, Union stated that it exceeded the building’s most recent valuation of $291.5 million, which equates to $638 per square foot. This surpasses the previous high for Uptown Dallas set by Cousins Properties’ $218 million acquisition of Uptown Link in August.
Union acquired Texas Capital Center in 2016 for $226 million and listed it for sale earlier this summer with an occupancy rate of 83 percent. The German real estate firm described the sale as a reflection of momentum in the U.S. office market and part of its broader strategy to shift investments away from larger office properties toward grocery-anchored retail.
JLL’s Mike McDonald and Jonathan Napper represented Union Investment Real Estate in the transaction.
Crescent Real Estate is led by CEO John Goff and now controls about one-fifth of Uptown Dallas’ office assets. The company is also known for developing The Crescent complex, a prominent mixed-use campus catering to Dallas’ financial sector.
Texas Capital Bank is the anchor tenant at Texas Capital Center, holding a lease through 2040 that includes naming rights and an expansion that tripled its space within the building. Other tenants include restaurants STK Steakhouse and Miriam Cocina Latina, as well as a gym. The property overlooks Klyde Warren Park and underwent $3.6 million in renovations last year.
Uptown Dallas continues to attract major financial firms. The New York Stock Exchange recently leased 28,000 square feet at Harlan Crow’s Old Parkland campus for its Texas branch. Goldman Sachs is developing a $500 million campus with Hunt Realty nearby, while KDC and Pacific Elm Properties are behind a new 30-story tower for Bank of America.
Union Investment said: “The sale reflected momentum in the U.S. office market as well as the firm’s strategy to rotate out of larger, older properties and shift investments to grocery-anchored retail.”
