Highwoods Properties and Granite Properties have acquired a 557,000-square-foot mixed-use property in Uptown Dallas. The 50/50 joint venture’s total investment is anticipated to be $394.7 million, including $2 million in transaction fees and $1.7 million in asset improvements.
McKinney & Olive features 507,000 square feet of office space space and 50,000 square feet of retail. Completed in 2016, the property is currently 99 percent occupied.
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Located at 2021 McKinney Ave., tenants are within walking distance to Klyde Warren Park and the Dallas Arts District. A one-acre piazza by the building offers green space. The Dallas North Tollway, Interstate 75, Woodall Rogers Freeway and public transportation options are in proximity to McKinney & Olive, offering access to the larger Dallas and Texas area.
Situated four blocks from McKinney & Olive is 23Springs, another joint venture development between Granite Properties and Highwoods Properties. The asset is a 626,000-square-foot mixed-use office and retail project. Expected to deliver in 2025, the Class AA building is 26 stories tall.
In prepared remarks, Ted Klinck, president & CEO of Highwood Properties, said McKinney & Olive has good net operating income upside potential, with rents estimated to be 35 percent below market rate. Next year, the asset is anticipated to generate a cash NOI of $22 million.
The post Highwoods Properties JV Acquires DFW Mixed-Use Asset appeared first on Commercial Property Executive.
Dallas, Deals, Investment, Mixed Use, News, South, Granite Properties, Highwoods Properties Inc.
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