Dallas' Plaza of the Americas, a three-building high-rise complex believed to be downtown's first mixed-use development, has been sold to a New York investor.
The sale of the 1.2 million square foot landmark property on Pearl Street is the largest office building purchase in North Texas this year. The complex includes two of his 25-story office buildings and a shopping center at the bottom of a 15-story atrium. The attached hotel with more than 400 rooms was not included in the sale.
Brooklyn-based Shelbourne Global Solutions purchased the downtown landmark building through commercial real estate firm Newmark Group.
“Our team is proud to be a part of this transaction and we are thrilled to have assisted all involved parties in completing the largest office sale in Dallas history in 2023,” Newmark's Chris Murphy said in a statement. I am especially grateful to you.” “The Plaza of the Americas will support future office and retail leasing demand in downtown Dallas, as millions of square feet of Class B office space will be repurposed for alternative uses, primarily residential and hospitality. We are in a unique position to capture it.”
Built in 1979 and 1980 by Dallas developers Clyde Jackson and Toddy Lee Wynn, Plaza of the Americas was Dallas' first atrium shopping venue and the first local commercial development to feature an ice skating rink .
The Pearl Street complex remains one of the most famous developments in downtown Dallas.
Since 2011, Plaza of the Americas has been owned by MM Properties and Invesco Real Estate. Investors paid an estimated $100 million for Plaza of the Americas (about the same as the original construction cost) and subsequently spent an estimated $26 million on renovations.
A 2013 redo of the atrium replaced the ice rink with a nearly 1-acre garden area with dining and gathering space for employees within the project's office buildings.
Newmark Group has been putting Plaza of the Americas up for sale since last year. Murphy, Robert Hill and Gary Carr of Newmark handled the transaction. Terms of the transaction were not disclosed.
MetLife Investment Management provided a $48 million loan as part of the deal, according to county records.
More than 60% of the building is leased to major tenants such as the Federal Deposit Insurance Corporation and Capital One.
Buyer Shelbourne manages more than 8 million square feet of commercial real estate with a total value of more than $8 billion.
The investor maintains extensive offices in New Jersey, Connecticut, Ohio, and Delaware. Shelbourne also owns an office complex outside Tulsa.
The sale of Plaza of the Americas comes at a time when most office buildings in the Dallas area are changing hands.
The only recent office sale downtown was the April purchase of 22-story St. Paul Place on Ross Avenue. The office tower was purchased by Dallas investor Pacific Elm Properties.
