Austin billionaire Michael Dell has his sights set on several blocks of Dallas' busy Knox Street business district.

A real estate investment partnership that includes tech tycoon Dell and Dallas-based property firm Retail Connection is in talks to acquire more than a dozen buildings and land along Knox, Travis Street and McKinney and Cole avenues just east of Highland Park.

Four real estate executives tracking the deal say Retail Connection and Dell's group are negotiating to purchase the properties and are close to a deal to continue the development program launched by Sarofim Realty Advisors.

The sale, potentially one of the priciest such property transactions, could be as much as $250 million in value.

Situated between East Dallas and the Park Cities, Knox Street has been a popular retail and business district for decades. The retail street stretches from Highland Park to North Central Expressway.

The properties in play, with more than 200,000 square feet of retail space and 165 luxury apartments, were put up for sale recently by Sarofim.

Sarofim spent more than two decades buying up property in the Knox Street neighborhood and building projects. Included in the sale is its newest development, a six-story apartment and retail building at Cole and Armstrong Street that houses Trader Joe's.

Sarofim is the largest owner in the booming Knox Street neighborhood, where apartment and retail construction is underway.

Buildings that house Crate & Barrel, Pottery Barn, Z Gallerie, On the Border restaurant and other high-profile retail tenants are part of the deal.

Sarofim previously had drawn up plans for 40,000 to 60,000 square feet of retail — with apartments on top — on the block it owns at Travis and Knox.

Officials with Retail Connection and Dell's investment firm, MSD Capital, did not respond to requests for information about their interest in the properties. A spokesman for Dell Technologies referred inquiries to MSD Capital.

Dell, founder of Austin-based computer firm Dell Technologies, is also the top officer for MSD Capital, which has holdings in real estate, private companies and other assets. The New York-based company does direct investment in properties, provides real estate financing and invests in partnerships with other owners.

Over the years, the company has invested in a wide range of properties, from Manhattan retail and office space to apartments in Florida. Founded in 1998 to manage the Dell family's investments, MSD Capital manages assets valued at over $10 billion.

Retail Connection, one of Texas' largest retail services and development firms, has been in business since 2003. The company represents over 30 million square feet of commercial real estate.

CEO and co-founder Steve Lieberman has a personal connection to the Dell family. His sister, Susan Lynn Lieberman Dell, is Michael Dell's wife.

A Travis Street property included in the transaction has already been planned for a large mixed-use development.

It's across the street from where Dallas' Weir family has recently announced a high-rise office and retail project that would replace its longtime Knox Street furniture store. Weir's plans to tear down its 70-year-old store and replace it with a 12-story building.

Retail Connection was a partner in the recent $40 million redevelopment of the 30-acre Village on the Parkway shopping center on Dallas North Tollway in Addison. The company also developed the Arlington Highlands shopping center and has projects in Tyler.