Monday, August 11, 2008

58,915-SF Foreclosure Goes to Local Investor

DALLAS-The Neil Felder Group has won Citibank's nod to take over a 58,915-sf flex office building in the East Brookhollow submarket in a value-add play. The seller had foreclosed on the 40%-leased asset, bringing it to market for $1.4 million.
Built in 1984 on four acres, the building at 1261-1331 Record Crossing Rd. is situated within blocks of Parkland Memorial Hospital and close to the University of Texas Southwestern Medical Center. Neil Felder of Dallas was up against three other local bidders, taking the deal across the finish line in a 30-day due diligence and 15-day close, Steve Wolff, a director in the Dallas capital markets group for Jones Lang LaSalle Americas Inc. tells "It went pretty smooth," he says.

The broker says the asset's occupancy never recovered from the exit of UT Southwestern's back-office operation to its main campus at least one year ago. The space was gutted in a make-ready move, but a backfill never materialized.

"Due to the fact it was foreclosed, we were able to aggressively market it," says Wolff, who teamed with JLL managing director Larry McCorkle to find a buyer. Wolff says the competitors all surfaced after one week of marketing, with Felder banking the win in an all-cash close.
Wolff says the New York City-based seller's motive was to "get it off its books." At closing, Wolff says there were five tenants, some in place more than a decade, and no large leases coming due in the near term. But, some upgrades are in order. "I believe there's a lot of upside to this property," he emphasizes.

By Connie Gore