HIC Returns to Large Office Acquisitions With Purchase of Tower 2600

Harkinson Investment Corporation (HIC) today announced the acquisition of Tower 2600, a nine-story, 229,307-square-foot Class A office building located on North Central Expressway in Richardson's growing Telecom Corridor, just south of the CityLine mixed-use district.

The acquisition marks Harkinson's largest office investment in more than 25 years and reflects the company's belief that the market has reached an inflection point where select Class A assets can be acquired at historically attractive valuations.

After selling its 13-story, 285,420-square-foot office tower at 4455 LBJ Freeway in 2015, Harkinson reduced its office holdings and focused primarily on retail centers, industrial flex properties and development opportunities throughout Texas.

"For more than a decade we've been patient," said Jeff Harkinson, President of Harkinson Investment Corporation. "Rather than chasing office investments through the peak of the market, we focused on sectors where we believed the risk-adjusted returns were stronger. Today we're seeing a very different environment. The office market has clearly separated into winners and losers, and premier buildings in outstanding locations are trading at prices that would have been difficult to imagine just a few years ago."

Tower 2600 is 92 percent leased with a 5.2-year WALT. Since January 2022, more than 205,000 square feet of leases have been signed or renewed, representing approximately 90 percent of the building's rentable area.

Built in 1999 and substantially renovated in 2020, the property has benefited from more than $10 million in recent capital improvements, including a new conference center, gym, and tenant lounge with grab-and-go food service. It overlooks the Spring Creek Nature Area and offers immediate access to U.S. 75, DART rail, and CityLine amenities.

"Nearly the entire building has effectively been re-leased since the pandemic. Combined with the continued strength of Richardson's Class A office market, it gave us confidence that employers are still willing to commit to high-quality space in the right locations," Jeff Harkinson said.

"This is one of the best office locations in North Dallas," said Josh Harkinson, Executive Vice President and Director of Acquisitions. "You have freeway visibility, DART connectivity, incredible views over the Spring Creek Nature Area and proximity to CityLine. Just as importantly, you're in a market that continues to attract companies looking for blue-chip buildings and access to a talented workforce."

As part of its due diligence, Harkinson conducted a comprehensive future workplace assessment, interviewing all of the building's tenants and evaluating the impact of artificial intelligence, changing workplace practices and industry trends on future office demand.

"We didn't want to rely on broad assumptions about the future of office," said Josh Harkinson, a member of the Urban Land Institute's DFW Office Product Council. "Every business is evolving differently, so we evaluated each tenant individually."

The review concluded that the tenant mix is particularly well positioned for the evolving workplace, with a growing share of wealth management, insurance and engineering firms whose businesses depend on trusted client relationships, specialized expertise, and collaboration. Harkinson believes AI will improve productivity within many of these organizations while reinforcing the value of experienced professionals and high-quality office environments.

The building's largest tenant, Kimley-Horn, exemplifies that trend through engineering work requiring multidisciplinary collaboration, field observations and site visits. Harkinson also believes AI may enable its insurance firm tenants to increase productivity without proportionally increasing staffing, supporting longer occupancy in existing office footprints.

"We're optimistic about the future of office, but we're highly selective," Jeff Harkinson said. "The buildings that succeed over the next decade will be those that offer great locations, strong amenities and tenant bases with durable business models. We believe Tower 2600 is one of those buildings."

The acquisition expands Harkinson's office portfolio, which also includes Midway Commons in Carrollton and Addison Park Place Tower in Addison.

Harkinson will retain Forge Commercial Real Estate for leasing the remaining available space in the building and for on-site property management services. Forge has been instrumental in the property’s transformation, increasing occupancy from approximately 50% during the pandemic to more than 90% in 2026. Leasing will continue to be led by Chuck Sellers, Taylor Lynch and Daniel DeWeese. "We are honored to partner with Harkinson on the leasing of Tower 2600," Sellers said. "Harkinson's vision for the property aligns with the strong momentum the building has already achieved, and we're excited to help execute the next phase of its success."

Tower 2600 was acquired from Orlando-based Development Ventures Group (DEVEN), a subsidiary of the Japan-based Kajima Corporation. During nearly a decade of ownership, Deven completed significant capital improvements that transformed the property into one of Richardson's leading Class A office buildings. As the company has increasingly focused on student housing, hospitality and mixed-use development, Tower 2600 represented an opportunity for Harkinson to acquire a well-positioned institutional asset.

The transaction was brokered by Newmark Vice Chairman Gary Carr and the Newmark Capital Markets team, representing the seller. “Tower 2600 presented investors with a compelling opportunity to acquire a high-quality, institutional-grade asset with durable in-place cash flow and future upside,” said Carr. “The property’s strong occupancy, long-term tenancy and position within one of North Texas’ most dynamic employment centers drove significant interest from investors.”

Acquisition financing was provided by First United Bank, a preferred lending partner Harkinson selected based on a long history of working together and a strong, trusted relationship. “Harkinson Investment Corporation is a premier real estate development firm in the Dallas/Fort Worth market and First United Bank is excited to have been chosen as the financing partner for this acquisition,” said First United Senior Vice President Greg Kirkpatrick. “Jeff, Josh, and the rest of the Harkinson team are a true pleasure to work with.”

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