A 123-year-old brick office building in Dallas’ West End neighborhood has a new owner.
Plano developer Granite Properties confirmed that it sold Factory Six03, a 215,111-square-foot Class A office building at 603 Munger Ave. in downtown Dallas. The buyer was Houston-based Dealco, a real estate firm recognized for its adaptive reuse developments.The transaction closed Aug. 27.
The sale price was not disclosed. The Dallas Central Appraisal District valued the property at $34.8 million for tax purposes.
The purchase gives Dealco its second West End property. The firm also owns the adjacent Oilwell Supply Building at 2001 N. Lamar St. Dealco did not immediately respond to questions about the deal.
FactorySix03 hit the market in April. At the time, it was 78% leased with tenants that include Sam’s Club, Blue Cross Blue Shield and coworking space firm The Common Desk, according to LoopNet, an online listing platform for commercial properties.
The building was constructed in 1903 and purchased by Granite in 2015. The seven-story structure was developed as the headquarters for Brown Cracker & Candy Co. The West End bakery and warehouse complex was once home to 1,000 people making cookies, chocolate bonbons and peppermint sticks.
It later became home to Sunshine Biscuit Co., Home Furnishing Co. and West End Marketplace as decades passed. As Dallas’ first festival marketplace retail center, the buildings were redeveloped in the late 1980s to include a 10-screen cinema. A popular Planet Hollywood nightclub and restaurant was on the ground floor.
The property sat vacant for a decade before Granite bought it. The Plano-based firm made more than $44 million in capital improvements as part of the redevelopment.
“We’re proud to have redeveloped this historic, 1903 brick-and-timber factory into a Class A creative workspace,” Paul Bennett, Granite’s senior managing director, said in a statement. “We combined modern elements with the building’s original assets and added high-end amenities, including a rooftop deck, an eighth-floor customer lounge and a large conference center. This unique, premium work environment has attracted innovative companies and creative professionals.”
Communications firm 46 Labs announced earlier this year that it moved its headquarters to Factory Six03, taking 25,000 square feet that used to be the Sam’s Club Innovation Center.
Cushman & Wakefield’s national office advisory group marketed the 603 Munger Ave. property. Those who assisted with the sale include Matt Murphy, Todd Savage, Russell Ingrum, Jared Chua, Kiana Nemati, Cole Sutter and Kelsey Roop Shebay.
Data shows that more office properties have hit the sale block this year.
Data from CoStar says there were roughly 171 office properties on the market as of mid-July. That represents 10.9 million square feet of space — a 10-year high.