Newmark Facilitates Sale and Financing of 1.2 Million-Square-Foot Mixed-Use Towers in Dallas’ Arts District

October 24, 2023 9:00 AM

Newmark announces the sale and financing of Plaza of the Americas, a landmark 1.2 million-square-foot office and retail asset in downtown Dallas’ Arts District.

Newmark Vice Chairmen Chris Murphy, Robert Hill and Gary Carr represented the sellers, M-M Properties and an institutional investor, and facilitated acquisition financing on behalf of the undisclosed buyer.

“Plaza of the Americas is uniquely positioned to capture future office and retail leasing demand in downtown Dallas as millions of square feet of Class B office undergoes a repurposing to alternative uses, primarily residential and hospitality,” said Murphy.

Located at 600 and 700 North Pearl Street in Dallas, Plaza of the Americas comprises two 25-story office towers connected by a glass atrium, with 120,000 total square feet of retail and dining space on the first and second floors and an eight-story parking garage.

Murphy added, “Our team is proud to be a part of this transaction and especially grateful to have assisted all parties in completing Dallas’ largest office sale so far in 2023.”

The buildings—constructed in 1980—have undergone $26 million in capital improvements over the last decade. Recent atrium renovations have replaced an under-utilized ice-skating rink with a new urban garden filled with natural light, water features, food pavilions and retail shops. The ownership plans a multi-million-dollar renovation to kick off later this year. The sale comes on the heels of Federal Deposit Insurance Corp. signing a 163,005-square-foot lease at Plaza of the Americas, one of the five largest office leases signed in downtown Dallas in the past decade[2].

Plaza of the Americas occupies a prime, transit-oriented site at the corner of Pearl and San Jacinto Streets, adjacent to DART Pearl Street Station. The property is within walking distance of Klyde Warren Park, the 400-room Dallas Marriott Downtown and several Dallas Arts District entertainment options, including the Dallas Museum of Art, Nasher Sculpture Center, Meyerson Symphony Center and AT&T Performing Arts Center.

Dallas-Fort Worth office-using employment reached an all-time historical high as of the end of May 2023. The metroplex reported 1.26 million office workers, an increase of 67.5% compared to 2010 and an increase of 22.0% compared to 2019 employment levels, according to Newmark Research. The continued strength and growth in the market’s office employment reflect an enduring appetite for office assets. The Dallas-Fort Worth office market’s long-term outlook remains positive and competitive given the market’s strong economic fundamentals, such as a diversified labor pool and continued office-using jobs growth.

[1] Largest Purchase Price, per Real Capital Analytics
[2] Per Dallas Morning News

About M-M Properties, Inc.
M-M Properties, Inc. is a privately held real estate firm with extensive experience developing, owning and operating distinguished assets in major markets across the United States. The company or its principals have engaged in real estate investment activities on behalf of investors, partners or for its own account across a portfolio of assets that has included 38 million square feet of office projects and 18,000 multifamily units with a cumulative transaction volume in excess of $10 billion. For further information, please visit mmprop.com.

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the year ending December 31, 2022, Newmark generated revenues of approximately $2.7 billion. As of June 30, 2023, Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with over 7,400 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

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