Union Investment Real Estate is continuing its US shopping spree with the acquisition of a Dallas, Texas office building.
The Hamburg, Germany-based firm announced the purchase on Tuesday of 2000 McKinney Avenue (pictured) but declined to disclose a price. PERE understands that the firm bought the 20-story property for about $220 million from a joint venture comprising Lincoln Property, Corrigan Properties and sovereign wealth fund Abu Dhabi Investment Authority. Constructed in 2008, the 2000 McKinney building is 98 percent leased, according to Union. The building also includes two restaurants, a fitness center and a deli.
“2000 McKinney occupies a truly core location and also boasts high construction standards,” said Matt Scholl, Union’s Americas head of investment management, in Tuesday’s statement. “In addition, the Dallas office market has excellent prospects going forward.”
Capital for the purchase came from Union’s open-ended real estate fund, UniImmo: Global. The firm launched the fund in January 2004 with a focus on office investments, according to a company spokesman. In the past year, Union has purchased several US properties through the fund, including a Chicago hotel for $315 million and Boston’s 99 Seaport Boulevard for $452 million, PERE previously reported.
“At the start of 2016, we announced that we would be focusing our investment activity on the strong US market, and we have done precisely that,” Martin Brühl, Union’s head of international investments, said in Tuesday’s statement. “We have a similar level of resources available to further expand our portfolio in the US.”
Union began investing in US real estate in 2002, according to the firm’s website. The firm’s first North America purchase with capital from the global fund was the 2005 acquisition of a five-story office complex in Seattle. Union’s other holdings in Texas are a Houston office building leased largely to oil companies, purchased in March 2015 for $435.5 million, and two office buildings in Austin, acquired in August 2013 for $103 million. The firm now owns 17 properties across the US, according to Tuesday’s statement.
Union manages €32 billion in assets.