Monday, August 31, 2015
Investors buy 2-building office complex in Dallas with plans for massive redo
A joint venture between Houston-based Triten Real Estate Partners and Chicago-based Convexity Properties has bought two North Central Expressway office buildings from a Dallas-based real estate investment firm.
Terms of the acquisition of the two-building office portfolio — 6060 and 6080 North Central Expressway — was undisclosed.
"The property is well-positioned to be a mixed-use, Class A lifestyle destination, and we're excited to be part of the investment," said Scott Arnoldy, managing partner of Triten Real Estate Partners.
The office buildings' central location to desirable neighborhoods, the Katy Trail extension to the property and proximity to public transportation near the DART rail line were all important characteristics for a long-term investment, he said.
6060 North Central Expressway is an eight-story, 224,682-square-foot boutique office building. It was constructed in 1972 and renovated seven years ago. The second building, 6080 North Central Expressway, includes four-story building with three levels of parking and a floor totaling 45,817 square feet of office space.
The new partnership plans to immediately begin a multimillion dollar renovation to the buildings to bring them up to Class AA standards. In the future, the two firms plan to build a mixed-use lifestyle center surrounding the properties to focus on offering a work-play-live environment to the neighborhood.
JLL's Jack Crews, Evan Stone and Lauren Zimmer sold the property to the new ownership venture on behalf of the seller, Dallas-based Prescott Realty Group. Wells Fargo provided the financing for the acquisition.
Over the past eight months, North Central Expressway has seen new tenants like Dallas-based TopGolf and the Shackelford law firm and there's an opportunity for redevelopment and investment in the corridor, said Crews, a managing director at JLL.
In the north Central Expressway corridor, tenants can pay an average of $23.74 per square foot plus utilities, which is $10 per square foot lower when compared with Uptown's average asking rates of $33.53 per square foot, according to JLL research.
At the time of the deal, the eight-story office building was 88 percent leased and 6080 North Central Expressway was 100 percent leased to Zenith Education Group.
CBRE's Ben Davis plans to lease the two-building complex.
Candace Carlisle/Dallas Business Journal