North Carolina-based Highwoods Properties is working on a deal to buy the landmark office and retail property.
One of Dallas’ most successful real estate developments could soon be changing hands.
The high-rise McKinney & Olive building in Uptown was built by Fort Worth-based Crescent Real Estate and designed by famed architect Cesar Pelli. Opened in 2016, the $225 million project includes 536,000 square feet of office and retail space that is almost fully leased.
Tenants in the office tower include Saatchi & Saatchi, Sidley Austin LLP, Foley & Lardner LLP, McKinsey & Co., Cushman & Wakefield and CrossFirst Bank.
For the last few months, commercial property firm Jones Lang LaSalle has been marketing the landmark Uptown building for sale.
North Carolina real estate investor Highwoods Properties, which has recently made significant plays in North Texas, is in talks to acquire McKinney & Olive, real estate executives familiar with the deal say.
Highwoods representatives did not reply to inquiries about the purchase.
If completed as expected, the McKinney & Olive sale is expected to bring one of the highest prices ever paid for an Uptown Dallas property.
Highwoods Properties, a real estate investment trust, has been in business since 1978 and has properties in Atlanta, Charlotte, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa.
The real estate firm has 27.4 million square feet of holdings, with the largest concentrations in Raleigh and Nashville.
Highwoods has teamed up with Plano-based Granite Properties on its Dallas-area deals. In July, the real estate investor said it was contributing about $130 million to Granite Properties’ new 23Springs office tower being built in Uptown and the Granite Park Six high-rise under construction in Plano.
The two Granite Properties buildings will contain more than 1 million square feet of space and are among the largest office developments underway in North Texas.
“Entry into the dynamic Dallas market is consistent with our long-term strategic plan of owning high-quality, trophy office buildings,” Ted Klinck, president and CEO of Highwoods Properties, said in a statement when the Granite partnerships were announced. “With its strong, diverse and growing economy, Dallas has been at the top of our list for future market expansion.”
McKinney & Olive is just one of several major D-FW office properties that are pending sale.
Through the first eight months of 2022, investors have snapped up almost $3.5 billion in North Texas office buildings, the most of any U.S. metro area.
Some of the largest recent Dallas-area office purchases include the more than $600 million acquisition of downtown’s Trammell Crow Center and the just-completed purchase of the 3400 Cityline building in Richardson’s Telecom Corridor.
