HFF Arranges Construction Loan, JV Equity for $225M Development of McKinney & Olive
- Jul 31, 2014
HFF recently announced that it arranged the construction loan and joint venture equity investment for the development of McKinney & Olive, a $225 million, 530,000-square-foot luxury project. Currently under construction, the tower was designed by renowned architectural firm Pelli Clarke Pelli and has been described by press as being “sexy.”
Acting on behalf of the developer, Crescent Real Estate Equities, HFF arranged 10-year, fixed-rate construction financing through New York Life Insurance Co. The capital placement team was led by associate director Bill Fishel, together with executive managing director Mark Gibson and senior managing director Trey Morsbach. J.P. Morgan Asset Management provided the joint venture equity for the development on behalf of institutional investors.
As we reported, the 20-story tower will feature 480,000 square feet of office space, 50,000 square feet of retail space and an outdoor public space of nearly one acre. Although early in the construction phase, the tower has already landed two important tenants — prestigious law firms Gardere Wynne Sewell LLP and Sidle Austin, which pre-leased 109,000 and 75,000 square feet of office space, respectively.
Set to be developed as Uptown Dallas’ tallest structure, McKinney & Olive is rising on a 3.1-acre site at McKinney Avenue and Olive Street. The Class A-plus tower’s typical floor size encompasses 25,000 to 30,000 rentable square feet, with highly efficient floor plates and 10-foot ceiling heights.
“Pelli Clarke Pelli has created a remarkable development that will become an iconic and compelling addition to Dallas’ central city,” said Mayor Mike Rawlings. “Additionally, Crescent’s continued investment in Dallas will not only create jobs and strengthen our tax base but McKinney & Olive will give us a competitive edge, helping us to keep and attract businesses to our city.”