Crow Holdings will acquire real estate interests at the Dallas Market Center from CNL Lifestyle Properties Inc., making it the solo owner of the complex of commercial buildings.
The agreement, which involves more than 5 million square feet of property at DMC’s campus, includes the World Trade Center, Dallas Trade Mart, International Trade Plaza and Market Hall. The acquisition is expected to close within 90 days. Terms of the deal were not disclosed.
Market Center Management Company Ltd., an operating company owned by Crow Holdings, will continue to manage the DMC business, including the tenant relationships and trade shows.
Crow Holdings is the diversified group of investment companies that owns and directs the investments of the Trammell Crow family and its investment partners. Crow developed the DMC beginning in 1957, and the Crow family has maintained an active role in its management since then. CNL Lifestyle Properties, a real estate investment trust that focuses on demographically driven properties, has held a majority interest in property at DMC’s campus since 2005. At the time, the DMC was valued at $249 million.
“Our company and its shareholders have been quite fortunate to enjoy a terrific and very constructive relationship with Crow Holdings and MCMC through our investment in the Dallas Market Center,” said Stephen H. Mauldin, president and chief executive officer of CNL Lifestyle Properties. “As the life cycle of our REIT draws to a close and we move to monetize our holdings, we remain wholly confident in the current and future performance of the Dallas Market Center as an industry-leading enterprise.”
Harlan Crow, chairman and ceo of Crow Holdings, said: “Our family’s business history begins and remains closely tied to Dallas Market Center. We value the decade-long partnership with CNL Lifestyle Properties, and the existing management team will maintain unrivaled support for our customers and vision for the business.”
DMC president and ceo Bill Winsor said Crow Holdings is a strong equity partner and “we will continue to work together to improve the Dallas marketplace and to create new events, attracting both buyers and exhibitors from around the world.”
Winsor said, “Our company has been consistently profitable with a legacy of driving annual growth, and the privilege to remain privately held allows for greater flexibility and growth potential, as well as a clear vision of creating business opportunities. Dallas Market Center and Crow Holdings answer directly to exhibiting customers, not to outside investment groups or shareholders. This unique partnership allows us to focus on long-term customer needs over short-term market demands.”
The DMC hosts more than 50 markets each year for sectors including apparel, textiles, accessories, gifts and home furnishings.