Cousins Properties has paid $218 million for The Link, a 292,000-square-foot lifestyle office building in Dallas, to Kaizen Development Partners. Newmark brokered the transaction, the largest of its kind in the market this year so far.
At the time of sale, the high-rise was 93.6 percent leased with a weighted average lease term of more than nine years. The tenant roster includes Houlihan Lokey, PMG and McGuireWoods.
The buyer financed the acquisition using excess proceeds from its unsecured senior note issuance during the second quarter, along with proceeds from the settlement of previously forward-issued common shares.
Kaizen Development Partners completed the property in 2021 using funds from a $128.3 million construction note originated by Goldman Sachs in April 2020, according to Yardi Research Data. At the time of the sale, the asset was subject to a $143 million loan provided by JPMorgan Chase in 2023, with a maturity date set for 2028, the same source shows.
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Located at 2601 Olive St. in the Uptown submarket, The Link is close to interstates 35E and 345, as well as 2 miles from downtown Dallas. DFW International Airport is 17 miles away, while downtown Fort Worth, Texas, is within 36 miles west.
The transit-oriented, 25-story tower has floorplates averaging 24,938 square feet and more than 9,300 square feet of retail space. The property includes two ground-floor restaurants, hotel suites and a full amenity level featuring a fitness center, tenant lounge and conference room, along with an outdoor terrace.
Newmark Vice Chairmen Chris Murphy, Robert Hill and Gary Carr, Director Austin Sheahan, together with Executive Vice Chairman & Head of International Capital Markets Alex Foshay, arranged the transaction on behalf of the seller.
Dallas office sales activity remains steady
Dallas’ office investment volume year-to-date as of June clocked in at $872 million, ranking in the top 10 markets nationally, according to the latest Yardi Matrix office report. However, assets in the metro traded for $163 per square foot on average, below the $189 national figure.
In May, Skywalker Property Partners purchased The Crossings I, a 232,541-square-foot office building 13 miles away from downtown Dallas. The 10-story building last underwent renovations in 2018.