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Luxury Uptown Office Gets New Owners

Real Estate

The McKinney & Olive high-rise office was just sold to a new set of owners. | Photo credit to Guardian Glass.

One of the priciest buildings in Uptown Dallas was just sold to a new set of owners. The McKinney & Olive high-rise is a landmark luxury office tower designed by the late renowned architect Cesar Pelli. The property features world-class architecture, premier office space, and exclusive restaurant and retail space in the charming neighborhood of Uptown Dallas.

The 557,000-square-foot, 20-story tower is considered one of the most successful buildings in Uptown Dallas. The buyers have invested $394.7 million in the project, including $1.7 million for immediate improvements and $2 million in transaction costs.

Andrew Levy and Todd Savage of Jones Lang LaSalle (JLL) brokered the sale.

The McKinney Avenue building was purchased through a joint venture between Plano-based Granite Properties and Highwoods Properties, a North Carolina-based real estate investment firm. The luxury tower was developed for $225 million by J.P. Morgan Asset Management and Fort Worth-based Crescent Real Estate and completed in 2016.

In 2018, McKinney & Olive achieved 100% occupancy with some of the most expensive rent in Dallas. Today, the building is 99% leased, with tenants that include Saatchi & Saatchi, Sidley Austin LLP, Foley & Lardner LLP, McKinsey & Company, Cushman & Wakefield, and CrossFirst Bank.

Retail tenants that occupy space in the building include Del Frisco’s Double Eagle Steak House, Starbucks Reserve Roastery, Doc B’s Fresh Kitchen, Roti Modern Mediterranean, Mixt, Drybar, and Cycle Bar.

“Granite is delighted to acquire McKinney & Olive with our partners Highwoods,” said Will Hendrickson, Granite Properties’ senior managing director. “This building is a very strong addition to our Dallas portfolio. It embodies the highest quality in architectural design and amenities to offer a compelling and productive work experience to top talent.”

Granite and Highwood’s joint acquisition of McKinney & Olive makes it the duo’s third partnership.

The co-owners are also partnered on the 23Springs high-rise, a 626,215-square-foot, 26-story, mixed-use property across from The Crescent on Cedar Springs Road. The project is set to open in 2025. The third project is the Granite Park Six, a 422,000-square-foot, 19-story office tower located in Plano.

“We are really excited to expand our presence in Uptown,” Hendrickson said. “We are big believers in the flight to quality we are seeing right now in office buildings. “We think projects like McKinney & Olive and 23Springs will be beneficiaries of that shift.”

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