Tuesday, September 22, 2015

It's official: CBRE Global Investors buys Galleria Towers in Dallas

A fund affiliated with Los Angeles-based CBRE Global Investors has closed on the Galleria Towers — a three-building, 1.4 million-square-foot Class A office complex in North Dallas — after having much anticipation by the real estate community.

CBRE Strategic Partners U.S. Value 7 has acquired the towers at 13355, 13455 and 13155 Noel Road adjacent to the Galleria Mall as part of a larger fund strategy. The deal is estimated at more than $300 million, according to real estate sources.

“Dallas, which is a target market for Strategic Partners U.S., has beenone of the better performing office markets in recent years,” said CBRE Strategic Partners U.S. President Vance Maddocks, in a prepared statement.

“Companies continue to relocate to Dallas, citing lower costs of doing business as well as proximity to transportation infrastructure, and the expansion of the LBJ Expressway will benefit access to this property," he added.

Gary Carr, Robert Hill, John Alvarado, and Eric Mackey of CBRE represented the seller, California-based Cannon Commercial Inc., which purchased the property for more than $300 million in 2008.

Last month, the Dallas Business Journal reported that CBRE Global Investors had the office complex under contract and planned to close on the property this month.

CBRE Strategic Partners plans to heavily invest in the property by adding its signature 5-Star Worldwide service and amenity program, which includes conference facilities, enhanced on-site tenant amenities and a fitness center.
   
Fund officials hope this will drive tenant demand, which will be needed as one of the property's largest tenants — Dallas-based FedEx Office — leaves for its new West Plano campus this month.

FedEx Office had a lease for eight floors totaling about 200,000 square feet at Three Galleria Tower at 13155 Noel Road. The company is in the midst of moving to its new headquarters campus within the $2 billion, 240-acre Legacy West development.

Candace Carlisle/Dallas Business Journal