Uptown is home to another grand-slam office trade.
Union Investment’s sale of 2000 McKinney topped Cousins Properties’ $218 million purchase of The Link at Uptown earlier this year, said Tal Peri, who heads the German investor’s U.S. acquisitions arm, although the price wasn’t disclosed.
That makes it the most expensive office trade of the year.
The German firm sold the 21-story, 457,000-square-foot property, at 2000 McKinney Avenue, for “a significant value increase,” it said in a release. The firm bought the building for $226 million, or $500 per square foot in 2016. It was delivered in 2008.
JLL’s Mike McDonald and Jonathan Napper represented the seller. The buyer wasn’t identified.
The property is anchored by Texas Capital Bank, which occupies 44 percent of the property. The bank has 15 more years on its lease. CoStar reported the building was 82.7 percent occupied in May. The property is adjacent to Klyde Warren Park. It has two restaurants, STK Steakhouse and Miriam Cocina Latina, as well as a gym.
In Dallas-Fort Worth, “flight-to-quality” usually means ditching downtown for Uptown. The neighborhood is also a favorite among the companies building who’ve made the Big D a financial hub. “Y’all Street” is making a home in Uptown with the development of a $500 million campus for Goldman Sachs by Hunt Realty and a 30-story tower for Bank of America by KDC and Pacific Elm Properties.
The New York Stock Exchange is setting up shop nearby. The Texas branch of the exchange signed a 28,000-square-foot lease at Harlan Crow’s Old Parkland.
As one of the strongest office submarkets, Uptown exemplifies the office market split. It has a vacancy rate of 23.2 percent, versus the overall market rate of 25.2 percent, according to Partners Real Estate.
Union Investment also owns Granite Park VII, an office building at 5600 Granite Parkway in Plano.
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