Crescent Real Estate has expanded its significant holdings in Dallas's booming Uptown district with the acquisition of a 19-story office tower at 2100 McKinney Avenue. The Fort Worth-based firm completed the purchase on December 17, further cementing its position as a dominant player in one of the city's most valuable commercial real estate markets.
The property was acquired from a joint partnership involving Metropolitan Life Insurance Co. and the New York Common Fund. While the final purchase price was not publicly disclosed, Dallas County deed records confirm that Crescent Real Estate secured $170.4 million in financing to facilitate the transaction. The investment bank Eastdil Secured represented the sellers in the deal.
Key Takeaways
- Crescent Real Estate purchased the 19-story office tower at 2100 McKinney Avenue in Uptown Dallas.
- The firm secured $170.4 million in loans for the acquisition, which closed on December 17.
- The building is over 360,000 square feet and is approximately 95% leased.
- This purchase follows Crescent's recent acquisitions of The Crescent complex and The Texas Capital Center, expanding its Uptown portfolio.
A Strategic Addition to a Growing Portfolio
This latest acquisition marks another strategic move by Crescent Real Estate, a company founded by billionaire John Goff. The firm has been aggressively increasing its footprint in Uptown Dallas over the past year. This trend began with the high-profile purchase of its namesake complex, The Crescent, in a 2021 deal valued as high as $700 million.
More recently, in October, Crescent acquired The Texas Capital Center located at 2000 McKinney Avenue. That transaction was noted as the largest office deal in the Dallas-Fort Worth area for the year. By adding 2100 McKinney to its portfolio, Crescent now controls a significant portion of the premium office space along one of Uptown's most prestigious corridors.
Uptown Dallas: A Premier Business Hub
The Uptown district is one of Dallas's most sought-after locations for office and residential space. Its high-density, walkable environment, combined with premium dining and retail options, makes it a magnet for top-tier corporate tenants and talent. This high demand consistently supports strong property valuations and high occupancy rates.
Details of the 2100 McKinney Avenue Tower
The tower at 2100 McKinney Avenue is a significant commercial asset. Developed in 1999 by the Trammell Crow Company, the building underwent extensive renovations in 2021, ensuring it remains a modern and competitive property in the Uptown market.
The structure offers more than 360,000 square feet of office space and boasts an impressive occupancy rate of approximately 95%. This high lease rate indicates the property's desirability and stable revenue stream, making it an attractive investment.
Property Valuation: The Dallas Central Appraisal District's most recent valuation for the property was $184.8 million for tax purposes.
High-Profile Tenancy
A key tenant in the building is the global real estate services firm CBRE, which occupies a recently renovated 95,000-square-foot office. The presence of such a prominent company in the real estate industry underscores the building's quality and prime location.
CBRE's commitment to the space, along with the high overall occupancy, signals strong confidence in the Uptown office market, even as workplace trends evolve. CBRE also established its global headquarters nearby last year at the PwC Tower on Pearl Street, further solidifying its presence in Dallas.
Crescent's Dominance in the Uptown Market
With this third major acquisition in a relatively short period, Crescent Real Estate is not just participating in the Uptown market; it is actively shaping it. The firm's concentrated investment strategy along McKinney Avenue gives it considerable influence over leasing and development in the area.
The series of purchases demonstrates a long-term bullish outlook on Dallas's commercial real estate sector, particularly in premium, live-work-play districts like Uptown. By acquiring high-quality, well-leased assets, Crescent is positioning itself to capitalize on the continued growth and corporate relocations that have defined the North Texas economy.
The company's focus on Class A office space in prime locations appears to be its core strategy. As businesses continue to prioritize modern amenities and central locations to attract and retain employees, Crescent's portfolio of renovated, high-occupancy towers is well-positioned for sustained success.
