Wednesday, July 30, 2014
LBJ Freeway office tower complex changes hands
A three-building office complex on LBJ Freeway in North Dallas has been sold to an institutional investment fund.
It’s the latest of several recent transactions along the freeway, which is nearing completion after several years of construction.
Miami-based Parmenter Realty Partners sold the Park Central 7-8-9 buildings at the southwest corner of LBJ and Coit Road.
Parmenter had owned the properties since 2006 and had made significant upgrades to the office buildings, which contain more than 845,000 square feet. The project was built in the early 1980s.
Terms of the sale were not disclosed.
Investor and business tenant interest in office properties along LBJ Freeway has rebounded in the last year as work to widen the freeway has gotten closer to completion.
Parmenter vice chairman Steve Bronner said the buyers saw the acquisition as an opportunity now that the highway expansion is winding down in that area.
“You can sit in the buildings and see where they have finished the construction,” Bronner said. “Our rents are up $1.50 to $2 per square foot over where they were 18 months ago, and the new owner is buying into that trend.”
Major tenants include Interstate Batteries, 1st Global Research and Consulting and Daisy Brands. The buildings are about 80 percent leased.
Parmenter sold the nearby Two Forest Plaza building on Merit Drive earlier this month. The 11-story office tower was acquired by Encore Enterprises.
Both properties are in the Park Central business park.
Bronner said the buldings were owned by one of Parmenter’s real estate investment funds that is selling assets to return proceeds to its investors.
Late last year, Parmenter bought one of Dallas’ largest office towers, the 42-story Tower at Cityplace near downtown.
“We like Dallas, and we are actively seeking more opportunities,” Bronner said.
By Steve Brown- Dallas News