Friday, March 20, 2015

M-M Properties, Invesco put Plaza of the Americas on the market


Plaza of the Americas

Plaza of the Americas sits near the DART Pearl Station and about three blocks from Klyde Warren Park in the Dallas Arts District and downtown Dallas.

Houston-based M-M Properties and Dallas-based Invesco Real Estate has placed one of downtown Dallas' skyscrapers on the market.

The ownership group has put Plaza of the Americas, a 1.2-million-square-foot Class A office complex — comprised of two, 25-story office towers connected with a 13-story atrium — in the Dallas Arts District on the market.

The property at the corner of Pearl and San Jacinto streets also includes two levels of retail space and a 12-story parking garage. Plaza of the Americas is located adjacent to the 407-room Marriott City Center hotel.

Plaza of the Americas is 74 percent leased. The property was recently renovated, turning the former ice rink at the center of the atrium into a lush urban garden with water features, food pavilions and retail shops. The Office of James Burnett designed the garden.

The property's other amenities include a conference center, a fitness center, a half-court basketball court and a tennis court. The building has access to downtown Dallas' underground tunnel system.

CBRE's John Alvarado, Russell Ingrum, Gary Carr, Bernard Branca, Eric Mackey, Jared Chua, and Robert Hill are marketing the property on behalf of the sellers.

"Through a combination of vacancy lease up, market rent growth and strengthening market dynamics, Plaza of the Americas presents a unique value creation opportunity," said Alvarado, a senior vice president at CBRE, in a prepared statement.

"Additionally, with an average remaining lease term of five years among existing tenants, investors will benefit from an in-place cash flow while securing new, long-term tenants," he added.

Downtown Dallas posted the second-highest leasing rate in 2014, and CBRE reps project the lease rates to be about 20 percent below the projected market rents.

Plaza of the Americas is getting ready to land high-tech firm Comparex USA, which expects to bring 200 high-paying jobs to downtown Dallas.

Last month, Plaza of the Americas was one of the buildings expected to trade this year as the Dallas-Fort Worth market continues to attract investor interest.

Candace Carlisle, Dallas Business Journal