North Carolina property firm bets 0 million on two new Dallas-area towers

North Carolina property firm bets $130 million on two new Dallas-area towers

Plano-based developer Granite Properties has formed a partnership with a North Carolina-based real estate investment trust to build two North Texas office towers.

Raleigh-based Highwoods Properties will be an equity investor with a 50% stake in Granite’s new 23Springs office tower under construction in Uptown Dallas and its Granite Park Six office high-rise being built on State Highway 121 in Plano.

The two buildings will contain more than 1 million square feet of space and are two of the largest such office developments underway in the Dallas-Fort Worth area.

“Granite is excited to partner with Highwoods Properties and realize our vision for 23Springs and Granite Park Six,” Will Hendrickson, senior managing director, said in a statement. “The partnership reflects confidence in the projects and the highly desired Uptown and Plano markets.

“It’s our first joint venture with a real estate investment trust,” Hendrickson said. “We’re expecting to bring in partners on most of our deals in the future.”

Highwoods Properties plans to contribute about $130 million to the Dallas-area office projects, which would have a combined value of $660 million.

The two office buildings are being financed in part with construction loans covering about 60% of the anticipated development costs.

The investment in the Granite buildings is Highwoods Properties’ first real estate play 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. “With its strong, diverse and growing economy, Dallas has been at the top of our list for future market expansion.

“We are excited about the opportunity to build and grow a strong presence in Dallas with our combination of proven development expertise, strong asset management platform and highly-regarded brand.”

Granite’s 23Springs building is a 26-story, 626,000-square-foot office tower under construction at Maple Avenue and Cedar Springs across the street from The Crescent. The project, which will open in 2025, includes 16,000 square feet of retail space.

Bank OZK is the lead office tenant in the building and provided construction financing.

In Plano, Granite’s 19-story, 422,000-square-foot Granite Park Six tower started construction in December and is scheduled for completion in mid-2023. The tower on the south side of State Highway 121 near the Dallas North Tollway is 12% preleased.

Granite’s new partner Highwood Properties has been in business since 1978 and has properties in Atlanta, Charlotte, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa.

The property firm has 27.4 million square feet of real estate, with the largest concentrations in Raleigh and Nashville.

North Carolina property firm bets 0 million on two new Dallas-area towers
Developer Granite Properties has started construction on a 19-story office tower on S.H. 121 in Plano. The Granite Park Six tower is the largest such project started in Plano in almost two years.

https://www.dallasnews.com/business/real-estate/2022/07/19/north-carolina-property-firm-bets-130-million-on-two-new-dallas-area-towers/

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