The Dallas-based real estate company said it acquired 2525 McKinnon St., an eight-story, 112,000-square-foot office building. The purchase price was not disclosed, and the transaction hasn’t been recorded in county records yet.
Hall Group said the deal closed Thursday afternoon. The Dallas Central Appraisal District valued the property at $37.5 million for tax purposes. Eastdil Secured Savills’ Dallas office brokered the deal.
The seller was CIO 2525 McKinnon LP. County records shows the partnership obtained a $90 million loan against the property from January. Athene Annuity & Life Company was listed as the lender.
Hall Group said it plans to rename the property Hall Uptown as part of a series of multimillion-dollar upgrades that include an updated lobby and common areas, spec suites and improvements to building systems. The midrise office building is across the street from the Rosewood Crescent Hotel and the McKinney & Olive tower.
“Uptown Dallas is one of the premier office markets in the country,” Hall said in a statement. “We’ve built our business by investing in great locations with lasting potential, and this acquisition is no exception. We see an opportunity to transform a well-located asset into a premier workplace that reflects the strength of the market.”
The building adds to Hall’s growing holdings in North Texas. The firm is behind Hall Park, the 162-acre Frisco campus it began developing in 1989. The property now includes 16 office buildings and is in the middle of a multibillion-dollar transformation to turn it into a mixed-use district.
Hall also oversees the KPMG Plaza, the 18-story, 500,000-square-foot tower at 2323 Ross Ave. that anchors Dallas’ Arts District. The high-rise, completed in 2015, was the first office building built in downtown in nearly a decade.
Hall Group said it will establish dual headquarters at Hall Uptown and Hall Park next Spring. The firm currently offices at KPMG Plaza.
The 2525 McKinnon St. property is in one of Dallas-Fort Worth’s hottest office submarkets, and data shows that more office properties have hit the sales block this year.
Data from CoStar show there were roughly 171 office properties on the market as of mid-July. That represents 10.9 million square feet of space — a 10-year high.
Other recent Dallas office sales include the Meadows Building. Dallas-based August Real Estate bought the landmark office building between North Central Expressway and Greenville Avenue in an off-market deal for an undisclosed price earlier this week.