DFW-Area State Farm Campus Sale Touted As Largest U.S. Office Deal This Year
State Farm’s massive regional campus at CityLine in Richardson, Texas, has traded hands.
The 2.2M SF mixed-use property sold to a real estate investment firm created by Robert Sarver, an Arizona businessman and former owner of the Phoenix Suns, according to property records obtained by the Dallas Morning News.
The sale included four office towers, which are fully leased to State Farm, as well as 120K SF of retail space and a 42K SF medical building. The transaction is the largest office sale in North America so far this year by square footage, per a news release from Newmark. The sales price was not disclosed.
“CityLine is a dynamic development, well-situated to reap long-term appreciation, as the Metroplex continues to grow north,” Newmark Vice Chairman Gary Carr said in a statement. “Highly sought after due to the project’s contractual lease obligations from investment-grade tenancy, CityLine provided investors with capital preservation, coupled with significant upside opportunities.”
The office campus has been owned by Mirae Asset Global Investments and Transwestern Investment Group since 2016. It last sold for $800M.
KDC started construction on the 186-acre CityLine development in 2013. State Farm began moving in employees two years later, and around 10,000 workers were eventually housed on-site. But many of those employees went remote during the pandemic, prompting State Farm to put more than 400K SF up for sublease.
Carr facilitated the sale of the CityLine complex on behalf of the seller alongside a number of Newmark colleagues, including fellow Vice Chairmen Robert Hill, Ken White and Chris Murphy, co-head of U.S. Capital Markets Kevin Shannon and divisional head of International Capital Markets Alex Foshay.
Newmark Vice Chairman David Milestone and directors Josh Francis and Henry Cassiday advised on the debt.
The sale comes a week after Newmark handled the sale of the 1.2M SF Plaza of the Americas office complex in Downtown Dallas to a New York investor in a transaction that was then heralded as the largest this year in North Texas.
