Wednesday, July 06, 2005

Downtown Dallas & Uptown Real Estate News

Downtown Dallas & Uptown Real Estate News

West End's Oilwell Supply Building Comes to Market

DALLAS (GlobeSt.com) -The Oilwell Supply Building, built in 1922 and overhauled in 1999, is up for grabs without an ask by an owner looking to mine a location at the edge of the West End and the closest office property to Ross Perot Jr.'s $3-billion works in progress, Victory.

"I think the thought is given the stability of the cash flow, positive trends in the West End and great news continuing to come out of Victory that now is a great time to take it to market," Evan Stone with Jones Lang LaSalle Inc.'s Dallas office tells GlobeSt.com. With six years of repositioning under its belt, Dallas-based Brook Partners, led by John Sughrue, has pushed occupancy to 94% in the multi-tenant building at 2001 N. Lamar St.

Stone says the call for offers will ring at the end of July. The 65,314-sf structure has six tenants, including Turner Construction Co.'s three-story headquarters. For West End goers, the building's best recognized for Joe's Crab Shack and Spiatza Italian Grill & Bar at the street level and four upper floors of office space priced at $18 per sf plus electric.

Stone says he expects institutional investors will chase the deal even though it's not a CBD high-rise. With the "as-is play" just being launched, he predicts the half-acre property will pull upward of $130 per sf. "It's still a discount to replacement cost," he adds, citing a tenant roster without any lease rolls this year. "For all intents and purposes, it's a new building on the inside and on the outside it's a historic building."

For 60 years, the building was filled by its builder, the Oilwell Supply Co., which later became a division of US Steel Corp. It sat vacant for 15 years until Brook Partners undertook the adaptive reuse. "The building shows well," Stone says. "It's been a labor of love."