CRESCENT REAL ESTATE IN PARTNERSHIP WITH GOLDMAN SACHS ASSET MANAGEMENT PRIVATE REAL ESTATE HAS ACQUIRED OFFICE PROPERTY IN UPTOWN DALLAS
NEW YORK, NY and FORT WORTH, TX – January 9, 2018 – Goldman Sachs Asset Management Private Real Estate (“GSAM PRE”) announced today that it has acquired, in a joint venture partnership with Crescent Real Estate LLC (“Crescent”) (together with GSAM PRE, the “Partnership”), 2401 Cedar Springs (the “Property”), an approximately 200,000 square foot office building located in Dallas, Texas.
2401 Cedar Springs is a soon-to-be-vacant office building originally constructed in 1989 for single-tenant use in the heart of Uptown Dallas. Located at the corner of Cedar Springs Road and Maple Avenue, the Property offers tenants an attractive live-work-play environment due to its proximity to retail amenities, public transportation and approximately 20,000 multifamily units within a 1-mile radius.
The Partnership plans to redevelop the Property into high-quality office space that will cater to tenants’ increasing demand for this type of product in the submarket. Corgan has been engaged as the project architect to design renovations that will utilize new technology and modern designs to improve building operations and enhance the building’s aesthetic and convenience to customers. As part of the business plan for the property, the Partnership will look to execute on exterior façade improvements, renovation of the building lobby, addition of an impressive amenity package and modernization of tenant spaces, common areas and restrooms.
“Dallas continues to rank among the top metropolitan markets in terms of annual employment growth, driven in part by its attractiveness to a growing, highly educated millennial workforce,” said Joe Gorin, Co-Head of GSAM PRE. “We believe 2401 Cedar Springs provides an attractive and differentiated office product that is positioned to appeal to office users and their employees. We are excited about the opportunity to offer tenants a reinvented Class A building in Dallas’ prestigious urban district.”
This acquisition deepens Crescent’s visibility in the Uptown Dallas market. The Crescent® office tower with its upscale retail space and Hotel Crescent Court is directly across the street. Crescent-owned The Ritz-Carlton, Dallas and award-winning McKinney & Olive premier office building are a few blocks from 2401 Cedar Springs.
“Crescent believes the acquisition and redevelopment of 2401 Cedar Springs provides a great value option to customers looking to locate in Uptown Dallas,” said Jason Anderson, Co-CEO of Crescent.
“As one of the best located existing office buildings in Uptown Dallas, 2401 provides unmatched access and convenience to one of the region’s most desirable submarkets. Once the short-term lease ends, the entire building will be available for lease, making this building an incredible opportunity to prospects once we complete the building upgrades as planned,” said John Zogg, managing director with Crescent.
As part of this transaction, Crescent, independent of GSAM PRE, acquired a highly-valued 0.67-acre site at 2811 Maple Avenue. Crescent is evaluating options for the site which include selling the land or developing a high-end multi-family or boutique office building. Crescent is also exploring securing a tenant for the existing one-story, 13,000 square-foot structure on the 2811 Maple Avenue site.
The 2401 Cedar Springs property is GSAM PRE’s 20th office investment since 2012 and its fourth investment in Dallas, Texas. Overall, GSAM PRE owns more than 3.6mm square feet of office space across the United States.
Jack Crews of JLL represented GuideStone in the transaction.