Wednesday, June 22, 2005

Downtown Dallas Real Estate News

Downtown Dallas Real Estate News

LA Investor Closes On 1700 Pacific Purchase

CSFB and Faison Exit Dallas Market Following Near-$100 Million Sale

DALLAS (CoStar - After a false start last year, a partnership between Credit Suisse First Boston (CSFB) of New York, and Charlotte, NC-based Faison Capital Advisors successfully sold the 49-story downtown Dallas landmark 1700 Pacific. The buyer, a private investment firm based in Los Angeles called Berkeley Investments, agreed to pay a price of "near $100 million" for the 1.34 million-square-foot office tower.

John Alvarado and Josh McArtor with Trammell Crow Company's Capital Markets group brokered the sale on behalf of the CSFB/Faison partnership, which had owned the property since 1986. With the sale, both companies have fully divested their holdings in the Dallas market.

Last year, another buyer put the building under contract, but the sale fell through and the sellers pulled the building off the market. "The transaction went as smoothly as could be expected after re-positioning the asset in early 2005," Alvarado said in a statement announcing the sale.

After the earlier sale was called off, observers speculated the prospective buyer may have had difficulty arranging financing for an older office building in downtown Dallas, despite a price reorted to be less than replacement cost. Alvarado credited Stephen Pearlman, a colleague in Trammell Crow's New York office, with identifying debt sources and helping arrange competitive financing to secure the building for Berkeley Investments.

Jon Hamilton, a Berkeley Investments principal, said his company will open an office in the building and is planning an "aggressive lease-up plan" for the 382,000 square feet of contiguous space that remains available in the building.

Trammell Crow's Jim Yoder, Jeff Eckert and James Esquivel will continue to market available space in the building for Berkeley, while property management duties will be handled by Lincoln Property Company.