At a glance
- Cousins' $50 million is designated for buying the parcel and some pre-development costs, putting the partner's equity in ahead of vertical construction.
- For allocators underwriting Dallas office development, the disclosed public support is the comparable.
- The $1.3 billion cost across 700,000 square feet works out to about $1,860 a square foot.
Cousins Properties committed $50 million of equity to Trammell Crow's $1.3 billion Morgan Stanley office tower in Dallas. The commitment makes it a partner on the 700,000-square-foot Uptown project.
Cousins' $50 million is designated for buying the parcel and some pre-development costs, putting the partner's equity in ahead of vertical construction. Connect CRE first reported the commitment. Trammell Crow is in "advanced predesign" on the tower, the Dallas Business Journal reports. Site work has begun with demolition of the former Gold's Gym at 2425 McKinney Ave.
For allocators underwriting Dallas office development, the disclosed public support is the comparable. The Dallas City Council approved an $18.5 million incentives deal and additional tax breaks for Morgan Stanley in June, and Texas supplied a $43.85 million grant from the Texas Enterprise Fund. Those two disclosed items alone total $62.35 million, about 4.8% of the $1.3 billion project cost. The tax breaks were not given a figure.
The $1.3 billion cost across 700,000 square feet works out to about $1,860 a square foot. Until the Uptown tower is complete, Morgan Stanley will keep a temporary office at Fountain Place, 1445 Ross Ave. in downtown Dallas. Groundbreaking is slated for 2027.
Reported by the Deals desk from Connect CRE. Published . Corrections