One of Uptown Dallas’ most visible office towers has sold.
(Source: The Dallas Morning News)
The 18-story Richards Group high-rise overlooks North Central Expressway in the Cityplace development at Blackburn Street and was purchased by a partnership of local and New York investors.
Built in 2015, the 250,000-square-foot office building was constructed to house the headquarters of Dallas advertising and marketing firm Richards Group.
Dallas-based commercial property firm OliveMill Holdings and Hunt Realty Investments teamed up with New York-based Angelo Gordon — a major investor with billions of dollars in real estate holdings in the U.S. and abroad — to buy the Dallas building.
The partnership bought the tower from SBR Real Estate Holdings LP, a company set up by the Richards Group to build the headquarters. Richards Group CFO Scot Dykema signed the sales documents and was listed as the manager of the partnership that sold the building.
Angelo Gordon representatives would not comment on the firm’s plans for the tower.
Terms of the deal were not disclosed. The building originally cost $45 million but was most recently valued for taxes at more than $60 million.
Richards Group CEO Glenn Dady, who confirmed the sale, said the firm is evaluating whether it will remain in the Cityplace tower.
“It’s undecided if The Richards Group will remain in the building as a tenant,” Dady said in a email. “We are currently in talks with the new owners.”
Richards Group designed the high-rise at 2801 North Central with architect Perkins + Will to house more than 600 employees. The city of Dallas provided economic incentives based on the employment numbers.
The advertising firm began cutting employees in 2020 after it lost major accounts due to controversial comments by founder Stan Richards. Richards has since left the firm.
The decline in Richards Group’s workforce in the Dallas building ended the tax abatements on the property last year. Real estate brokers say the company intends to downsize its office footprint.
The Richards Group building’s new owners are:
- Angelo Gordon, which has raised billions of dollars in funding to acquire properties worldwide in the last few years. The company invests in everything from offices to warehouses and apartments.
- Hunt Realty Investments, a major Dallas property firm with local projects that include the 11-acre North End redevelopment on Field Street just north of downtown Dallas. It’s also a partner in the 2,500-acre Fields community development in Frisco.
- OliveMill Holdings, a firm that was recently formed by Chris Selbo, Peter Yates and Ryan McManigal in 2021, former officers with Dallas-based developer KDC. OliveMill is a full-service firm focused on investing, leasing, management services and development. The company targets assets located in high-growth commercial and employment centers to maximize returns and value.
“It’s an exciting time to be working in the office building segment, and we’ve found great partners with Hunt Realty Investments and Angelo Gordon,” Selbo said in a statement. “We look forward to a long relationship as we share a similar vision of focusing on the people aspect of office assets and leaving properties better than we found them.”
OliveMill Holdings worked with Hunt Realty late last year to relocate JPMorgan Chase Bank’s downtown Dallas offices and the Petroleum Club to the Hunt building at Akard Street and Woodall Rodgers Freeway.
Because of its high-profile freeway location in Uptown next door to DART’s Cityplace light rail station, the Richards Group building would be highly attractive to businesses looking for a Dallas address.
“The building’s quality and location are unmatched, and it fits perfectly with our goal of acquiring high-quality assets in dynamic locations,” Yates said. “We want to be good stewards of this iconic building on one of Dallas’ most-traveled highways.”
The area north of downtown is forecasted to have a shortage of office space in the next year, with few new buildings opening until 2023 or later.