Plano-based developer Granite Properties has partnered with a North Carolina-based real estate investment trust to build two North Texas office towers.
Raleigh-based Highwoods Properties will be a equity investor holding a 50% stake in Granite’s new 23 Springs office tower under construction in downtown Dallas and the Granite Park Six office skyscraper under construction on Plano’s State Highway 121. ..
The two buildings contain more than one million square feet and are the two largest such office developments underway in the Dallas / Fort Worth area.
“Granite is excited to partner with Highwoods Properties to realize the vision of 23 Springs and Granite Park Six,” said Will Hendrickson, Senior Managing Director, in a statement. “This partnership reflects trust in the project and the highly sought after uptown and plano markets.
“This is the first joint venture with a real estate investment trust,” Hendrickson said. “In the future, we expect to attract partners in most transactions.”
Highwoods Properties will donate approximately $ 130 million to office projects in the Dallas region, worth a total of $ 660 million.
The two office buildings are partially financed with a construction loan that covers approximately 60% of the expected development costs.
Investing in granite buildings is Highwoods Properties’ first real estate play in northern Texas.
“Entering the dynamic Dallas market is in line with our long-term strategic plan to own a high-quality trophy office building,” Ted Klinck, President and CEO of Highwoods Properties, said in a statement. “Due to its strong, diverse and growing economy, Dallas is 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 a combination of proven development expertise, a strong asset management platform and a highly regarded brand.”
Granite 23 Springs Building Is a 26-story, 626,000-square-foot office tower under construction on Maple Avenue and Cedar Springs across from Crescent. Opening in 2025, the project includes 16,000 square feet of retail space.
Bank OZK is the building’s lead office tenant and funded the construction.
In Plano, 19 stories of granite, 422,000 square feet Granite Park Six Tower Construction will begin in December and will be completed in mid-2023. The tower on the south side of State Highway 121 near Dallas North Tollway is 12% open.
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.
Real estate companies own 27.4 million square feet of real estate and are most concentrated in Raleigh and Nashville.