Highwoods, Granite Properties JV acquires mixed-use asset in Dallas for $395m

Highwoods Properties has acquired McKinney & Olive, a 557,000-square-foot trophy mixed-use asset in the heart of Uptown Dallas, in a 50-50 joint venture with Granite Properties.

The joint venture’s total investment (at 100 percent) is expected to be $394.7 million, which includes $1.7 million of near-term building improvements and $2 million of transaction costs. During 2023, McKinney & Olive is expected to generate cash net operating income of $22 million (at 100 percent) and GAAP net operating income of $26.2 million (at 100 percent).

McKinney & Olive, which was delivered in 2016 and is now 99 percent leased, offers 507,000 square feet of multi-customer office space, 50,000 square feet of retail space and a one-acre piazza surrounded by walkable amenities steps away from Klyde Warren Park and the Dallas Arts District. McKinney & Olive, which has easy access to the Dallas North Tollway, Woodall Rogers Freeway, Interstate 75 and public transportation,