Union Investment Sells Texas Capital Center in Dallas Amid Mixed Office Market

Union Investment has sold the Texas Capital Center office tower in Dallas to a U.S. real estate investor, marking an exit from a property it had owned since 2016 through its UniImmo: Global fund.

The 21-story building, located on McKinney Avenue in Dallas’ Uptown district, offers more than 42,000 square meters of leasable space and parking for over 1,300 vehicles. Completed in 2008, the tower is primarily used for offices with a small share of retail. Its anchor tenant, Texas Capital Bank, occupies a significant portion of the building under a long-term lease extended in 2022 until 2040. At the time of sale, about 20 percent of the space was vacant.

Union Investment did not disclose the sale price. The company said the transaction reflects continued investor interest in Dallas, which remains one of the largest office markets in the United States. The sale also aligns with its strategy of reducing exposure to U.S. offices while broadening global portfolio diversification.

The deal comes at a time when Dallas’ office sector is facing pressure. According to Partners Real Estate, the metro’s office vacancy rate reached 25.3 percent in the second quarter of 2025, with negative net absorption of roughly 285,000 square feet. Leasing activity slowed, totaling about 3.7 million square feet for the quarter. By contrast, Class A properties performed somewhat better, with CBRE noting modest positive absorption and resilient rents, reflecting the ongoing “flight to quality” trend as tenants gravitate toward newer, amenity-rich buildings.

Union Investment was advised on the Texas Capital Center transaction by JLL, Metzler, and Mayer Brown.