27 September 2018
Union Investment acquires office property in Granite Park campus in Dallas
Union Investment has acquired the Granite Park VII office property in Dallas. Completed in 2017, the building offers 30,000 sq meters of prime office space and is fully let on a long-term lease to US government sponsored entity, Fannie Mae. The vendor is Granite Properties, the developer of the Granite Park campus, which currently comprises six commercial properties out of a planned total of eight. Granite Park VII is the newest property on the site. The purchase price is around EUR 140 million, and the acquisition is being made on behalf of open-ended real estate fund Unilmmo: Europa.
“Having acquired a 40,000 square meter property at 2000 McKinney Avenue in 2016, this acquisition is our second major office transaction in the Dallas area,” said Matthew Scholl, Head of Investment Management Americas at Union Investment Real Estate GmbH. “This is consistent with our strategy of investing in fast-growing and dynamic submarkets, as well as established CBD locations, provided our investment criteria are met. Our focus is on stable long-term rental income, which is ensured by the long lease with Fannie Mae.” Following this acquisition, Union Investment now holds 18 office properties in the US with a total value of around EUR 4.2 billion.
The vibrant Legacy submarket has performed very well in recent years. In addition to approximately 650,000 square meters of office space occupied by companies such as Toyota, Liberty Mutual, JP Morgan Chase and Fedex, more than 3,800 apartments and various retail amenities and hotels have also been constructed. The submarket now offers a good urban mix and a true live-work-play environment. Located within the Granite Park campus and close to Granite Park VII are The Boardwalk restaurant zone and a Hilton hotel with 300 rooms, amongst other facilities. There are good transport links to the city centre and to both of Dallas’ airports, thanks to quick access to the highway system.
“The Legacy submarket is one of the most dynamic and interesting markets in the US and the development of the Granite Park campus is a good example of how fast growth and a sustained high-quality user experience can be combined,” said Willis Kim, Head of US West Coast and Canada at Union Investment Real Estate GmbH. “Together with the excellent construction quality of Granite Park VII, this creates great investment conditions for us.”