Union Investment acquires office property in Granite Park campus in Dallas for €140m

Union Investment has acquired the Granite Park VII office property in Dallas. Completed in 2017, the building offers 30,000 square meters (98,425 square miles) of prime office space and is fully let on a long-term lease to U.S. government–sponsored entity Fannie Mae. The vendor is Granite Properties, the developer of the Granite Park campus, which currently comprises six commercial properties out of a planned total of eight. Granite Park VII is the newest property on the site. The purchase price is around €140 million ($163 million), and the acquisition is being made on behalf of open-ended real estate fund Unilmmo: Europa.

The acquisition is the firm’s second major office transaction in the Dallas area after acquiring a property at 2000 McKinney Avenue in 2016, said Matthew Scholl, head of investment management Americas at Union Investment Real Estate GmbH. “This is consistent with our strategy of investing in fast-growing and dynamic submarkets, as well as established CBD locations, provided our investment criteria are met. Our focus is on stable long-term rental income, which is ensured by the long lease with Fannie Mae.”

“The Legacy submarket is one of the most dynamic and interesting markets in the United States and the development of the Granite Park campus is a good example of how fast growth and a sustained high-quality user experience can be combined,” said Willis Kim, head of U.S. West Coast and Canada at Union Investment Real Estate GmbH. “Together with the excellent construction quality of Granite Park VII, this creates great investment conditions for us.”

Following this acquisition, Union Investment now holds 18 office properties in the United States with a total value of around €4.2 billion ($4.9 billion).