Bank OZK, a growing bank with $26 billion in assets, played more than one role in moving one of Uptown Dallas' most ambitious mixed-use projects forward by signing a lease that more than doubles its regional headquarters for a building where they also are providing the construction loan.
The Arkansas-based bank, with more than 240 offices in eight states, leased four floors totaling 110,029 square feet at 23Springs, a 26-story, 626-215-square-foot office and retail tower at 2323 Cedar Springs Road in April 2022. With the lease, Bank OZK is expected to relocate from Preston Center, where the bank leases about 45,000 square feet of space, to Uptown Dallas and become the lead office tenant at 23Springs.
Bank OZK's lease at 23Springs was one of Dallas' largest lease transactions in 2022. Bank OZK provided the $265 million construction loan for the project, which is being developed in a partnership between Plano, Texas-based Granite Properties and Highwoods Properties. Like other office projects, 23Springs was delayed by the pandemic. The construction financing and the lease from Bank OZK allowed the project to move forward with development. The lease earned a 2023 CoStar Impact Award, as judged by real estate professionals familiar with the market.
About the deal: Bank OZK wanted to be in a high-quality building to benefit its roughly 200 employees and fit its brand in what is known as the best office submarket in Dallas. The office tower, restaurant spaces and park are expected to be completed by early 2025.
What the judges said: "In the current environment where office development is challenging, it should give the market confidence that groups such as Bank OZK are willing to trade up from Preston Center to Uptown and launch a new development project," said Joseph Cahoon, director of the Folsom Institute for Real Estate at Southern Methodist University.
They made it happen: JLL's Robert Blount and Janine Ng represented Bank OZK in its lease. Will Hendrickson, Robert Jimenez, Elizabeth Fortado and Burson Holman of Granite Properties represented the landlord.
