In what could be a record-setting deal for Dallas, Seattle-based Metzler Real Estate plans to buy 2000 McKinney Avenue in Uptown for more than $220 million, or more than $500 per square foot, according to real estate sources.
The 21-story, 442,355-square-foot office tower along McKinney Avenue has been on the market since earlier this year and attracted a number of institutional quality investors, such as the real estate investment firm that has previously owned office buildings in North Texas.
Metzler CEO Don Wise did not immediately return an interview request late Wednesday.
The office tower has been marketed by Eastdil Secured on behalf of ADIA and Dallas-based Lincoln Property Co., which also leases the building. Lincoln Property is one of the building’s tenants, as well as Benchmark Title and Revere Capital.
>McKinney Avenue — a brick inlaid street in Uptown — is the priciest street for office real estate in the region and the 10th most expensive address for a central business district in the United States.
On average, Dallas businesses can lease office space along McKinney Avenue for $43.81 per square foot, which is a 83 percent premium compared with the street average in the North Texas market, according to JLL’s latest “Most Expensive Streets” research.
The average office lease rate for space in Dallas-Fort Worth is $23.93, according to the research. From 2011, McKinney Avenue’s lease rate has climbed nearly $10 per square foot, which is a reflection of the hot real estate market in North Texas.
The office tower also has Perry’s Steakhouse on the ground floor of the building, which also adds to its allure. The tower sits across the street from the new McKinney and Olive development as well as the soon-to-be finished 1920 McKinney Ave. It is also in close proximity to Klyde Warren Park.
Meanwhile, nearby Chase Tower sold to a New York investor for nearly $300 million, which is about $230 per square foot. This latest deal is a record-setting deal on a per square foot cost basis, real estate sources say.