Real Estate Sources Say 7-Eleven’s Former HQ Building Could Sell to a New Owner This Summer
Highland Capital Management LP, a Dallas-based multibillion-dollar alternative investment firm, could buy Cityplace Tower along the North Central Expressway corridor in a deal that could close by the end of the summer.
The iconic tower is the sole skyscraper-like office building outside the core of downtown Dallas in the Cityplace-West Village neighborhood. The building delivered in 1985 as a build-to-suit headquarters for 7-Eleven, which moved to Dallas’ One Arts Plaza for nearly a decade before relocating from the downtown Dallas area to a new corporate campus in Cypress Waters, a 1,000-acre mixed-use development located in the northwest Dallas suburbs, in 2016.
Real estate sources say Highland Capital has the tower at 2711 N. Haskell Avenue near the West Village under contract for an undisclosed sum. The 42-story, 1.35 million-square-foot tower was last sold in November 2013 to an affiliate of Parmenter Realty Partners for more than $135 million, or $100 per square foot.
Cityplace Tower was expected to undergo a massive renovation by Parmenter Realty Partners before Highland Capital put the 33-year-old office tower under contract.
A spokeswoman for Highland Capital declined to comment on the would-be deal. Sources say the off-market transaction could close in the next 30 days.
Highland Capital could pick up plans initially proposed by Parmenter Realty nearly five years ago to transform the acreage fronting Haskell Avenue into an “urban mixed-use development” that could total more than 600,000 square feet of residences, restaurants and shops. Those plans, under Parmenter Realty’s direction, never came to fruition. But Parmenter was hardly the only landlord to face difficulties executing on plans for the tract.
Other previous ownership groups of Cityplace Tower, including Brandywine Realty Trust, have also hit hurdles developing additional real estate adjacent to the high-rise office tower, with industry speculation pointing to lack of financing. But conditions may be improving.
“I would think the timing would be very good for additional development around the tower,” said Neal Sleeper, president of Cityplace Co., which has recently completed construction on the Canopy by Hilton Hotel in Uptown, across North Central Expressway from Cityplace Tower.
“I’ve been surprised the previous ownerships, which have all had plans to develop around the tower, have not been able to follow through with those proposed projects,” Sleeper added.
Highland Capital, which has traditionally invested in real estate outside of North Texas, could see the tower as a prime opportunity to make its mark in Dallas, sources say. The investment firm’s corporate office is located in nearby Uptown at 300 Crescent Court.