Highwoods Properties Inc. entered the Dallas-Fort Worth market by forming an approximately $130 million joint venture with Granite Properties to acquire a 50% interest in two of the promoter’s current office projects.
Through the recapitalization, Highwoods will become co-owner of 23Springs, a 26-story tower totaling 642,000 square feet in downtown Dallas, and Granite Park Six, a 422,000 square-foot multi-tenant office building taking shape in within Granite Park, a 90-acre mixed-use development in Plano, Texas.
The REIT plans to fund its entry into the Metroplex by divesting its Pittsburgh assets. The company’s portfolio of nearly 2.2 million square feet was 92.9% leased at the end of the first quarter of 2022.
Two office buildings to come
Granite began construction on 23Springs in June and plans to deliver the AA-class building in the first quarter of 2025. As for Granite Park’s tallest building, the developer opened Granite Park Six last December, with a completion planned for the last quarter. of 2023.
Conceived by GFF Architects to achieve LEED Silver and Fitwel certifications, 23Springs is taking shape at 2323 Cedar Springs Road. Slated to be Uptown’s tallest office building when completed, the skyscraper will feature 16,000 square feet of retail space and a 6.5-level garage structure with a 2.5 parking ratio spaces per 1,000 square feet. The property is expected to feature 26,000 square foot floor plates, a two-story lobby with a cafe and wine bar, a 4,500 square foot fitness center and an outdoor lounge with conference space, between other amenities.
Located at 5525 Granite Parkway, Granite Park Six is also aiming for LEED and Fitwel ratings. The 19-story building will include 25,000 square foot platforms as well as a lobby with a coffee bar, a 400-seat conference room, three conference rooms, a furnished terrace on the sixth floor, a fitness studio and a living room.
Previews in place
Both developments already benefit from pre-letting contracts. In April, OZK Bank signed a 110,029 square foot lease to 23Springs, intending to establish its new regional headquarters in the Uptown Dallas development. The lease has only strengthened the relationship between the developer and the lender, with OZK Bank providing a total of $445 million in construction financing for the two projects in January and April, respectively.
On the other hand, the 52,000 square foot preview of Granite Park Six involved an expansion of the mixed-use property. Stonebriar Commercial Financing agreed to occupy two floors in the office tower designed by BOKA Powell. The private commercial finance and leasing company was already headquartered in Granite Park Three.