Union Investment has completed the sale of the Texas Capital Center, a 21-story office tower in Dallas, to a U.S.-based real estate investment company.
The transaction, concluded above the asset’s latest valuation, underscores the enduring appeal of Dallas as one of the top U.S. office markets.
Union Investment originally acquired the property in 2016 for its open-ended real estate fund UniImmo: Global at a price of approximately US$226 million.
Built in 2008, the Texas Capital Center offers more than 42,450 square meters of rentable space and parking capacity for 1,347 vehicles. Around 95 percent of the building is devoted to office use, complemented by a small retail component.
Texas Capital, the property’s anchor tenant, reaffirmed its long-term commitment in 2022 by extending its lease until 2040. At the time of sale, around 20 percent of the office space remained vacant.
“The successful sale of Texas Capital Center reflects strong market interest in high-quality U.S. office assets and demonstrates our ability to create value for fund investors,” said Adam Irányi, Head of Investment Management Global at Union Investment.
Union Investment emphasized that the disposal aligns with its portfolio strategy. “U.S. offices remain a strategic component of the UniImmo: Global portfolio. However, in line with our fund strategy, we want to broaden our overseas exposure and invest in more fungible properties,” explained Chief Investment Officer Karim Esch. He added: “We are seeing institutional investors’ confidence in real estate markets returning. By selling large-volume, older properties profitably, we are creating additional room for maneuver in the new market cycle.”
The centrally located tower sits in Dallas’ financial district, with direct access to urban amenities including Klyde Warren Park. Union Investment was advised on the transaction by JLL, Metzler, and Mayer Brown.
The sale reduces Union Investment’s exposure to the U.S. office sector while reinforcing its commitment to a diversified global investment strategy.
