DALLAS, TX – HFF arranged $105.8 million financing for Thanksgiving Tower, the 1.37 million square-foot tower in downtown Dallas. Wood Capital Management acquired the property for with plans to fund an extensive capital improvement plan for Thanksgiving Tower.
Thanksgiving Tower is located at 1601 Elm Street in the heart of Dallas’ central business district. Currently the property is 74% percent leased with major tenants including Santander Consumer USA, Gardere Wynne Sewell, Looper Reed McGraw, and Petro Hunt.
The renovations to the building will add to the ongoing revitalization of downtown Dallas’ Main Street District.
“From ten years ago to today downtown Dallas is dramatically different and it will continue to improve by an equal amount if not better in the next ten years,” said Steve Heldenfels managing director at HFF.
Heldenfels attributes the renewal to improving infrastructure and an increase in multifamily developments downtown. Additionally, downtown Dallas has seen an increase in significant leases recently with HKS Architects’ move to One Dallas Center and Santander’s lease at Thanksgiving Tower which will bring 1,000 new jobs to downtown Dallas. In the fourth quarter of 2013, the downtown Dallas office market had a total vacancy rate of 25.9 percent, according to CBRE.
HFF worked on behalf of Woods Capital Management to secure the three-year, floating-rate loan through Ares Commercial Real Estate Corporation a specialty finance company. The HFF team was led by managing director Steve Heldenfels and senior managing directors Trey Morsbach and Brian Carlton.
Woods Capital is a real estate investment firm focused on the U.S. market and has completed over $4 billion in real estate acquisition and/or development transactions including office, residential, industrial, retail and mixed-use properties.