Regent Properties has acquired Trammell Crow Center, a 50-story, 1.2 million square-foot, Class-A office tower located at 2001 Ross Avenue in Dallas.
Regent purchased the property from institutional investors advised by J.P. Morgan Global Alternatives.
Terms of the transaction, which marks Regent’s third investment via Regent Opportunity Fund V, were not disclosed.
Trammell Crow Center is among the tallest buildings in Dallas, offering panoramic views of the city’s thriving Arts District and the wider Dallas-Fort Worth metropolitan area.
In recent years, the project has benefited from a comprehensive renovation and capital investments in excess of $180 million to modernize the asset, dramatically improve curb appeal, and create a dynamic, mixed-use destination.
Notable additions include the development of a 2,000-space parking garage, a 10,000 square-foot athletic club, a 10,000 square-foot state-of-the-art conference center, a new tenant lounge, engaging outdoor gathering areas, and 32,000 square feet of urban, walkable retail space programmed with a mixture of compelling food and beverage offerings.
“We are delighted to complete this transaction and are proud to own a long-standing fixture of the Dallas skyline,” said Eric Fleiss, CEO of Regent Properties. “Last year we set an objective to invest more than $2 billion in high-quality office real estate across Texas and the Sunbelt regions. The purchase of this iconic asset, during a period of market dislocation, reflects our view that sustained demand for these best-in-class office towers will continue.”
The purchase of Trammell Crow Center also includes the adjacent full-city block situated at 2000 Ross Avenue, which is improved with a 2,000-space structured parking garage including extensive ground-floor retail and a development site that can accommodate a new residential or office tower. The block also includes Dallas’ first JW Marriott hotel, slated to open in 2023, which is not included in the transaction.
“The seller’s transformative renovation has created a modern and vertically-oriented campus-like layout, which has proven to be a compelling environment for talented employees and, in turn, their employers,” said Sam Kraus, Principal and Head of Investments at Regent Properties. “Remarkably, the project has generated more than 180,000 square feet of leasing amidst the pandemic, with the average tenant committing to over 10 years of lease term. Leveraging our experience across decades of institutional real estate ownership and development, Regent will continue to add incremental value to this esteemed address and foster a differentiated work environment for the next generation of tenants.”
In less than 10 months, Regent has acquired more than $1.2 billion of real estate across Texas and the Sun Belt. Most recently, the firm acquired 816 Congress, a 435,000 square foot Class A office tower in Downtown Austin. Also during 2021, Regent acquired a portfolio of four high-rise commercial office buildings in downtown San Diego for $420 million and opened a second corporate headquarters in Dallas to support its investment strategy. Regent has been an active and successful investor in Texas for more than 30 years, and now owns and operates more than 3.2 million square feet of assets throughout the state, including Legacy Central, an award-winning 84-acre project that is also in the Dallas-Fort Worth MSA.
