Wednesday, August 10, 2016

Plano office tower sale could set North Texas real estate record

The 13-story Legacy Tower on the Dallas North Tollway is near Toyota and
Liberty Mutual Insurance's new office campuses. 
Records are made to be broken.
And a North Texas real estate high point could be set if a Plano office building changes hands.
The 13-story Legacy Tower in West Plano on the Dallas North Tollway is in play.
And an international buyer eyeing the property could set a new high for suburban office sales, real estate brokers who are tracking the deal say.
Completed in early 2015, the office high-rise was built by Trammell Crow Co. and Principal Financial and is part of the Legacy Town Center mixed-use project.
The 342,000-square-foot tower at the tollway and Legacy Drive is one of the top office properties in West Plano.
A foreign investor that's shopping the deal is expected to pay close to $400 per square foot for the tower.
That would set a new record for such office developments. The previous highest price paid was the $375-per-square-foot sale of the nearby former Encana Oil & Gas tower in Legacy Town Center.
Legacy Tower is substantially leased to tenants including Crestron Electronics, Hilti, UBS and Murchison Oil & Gas Inc.
Trammell Crow and CBRE representatives declined to comment on a possible sale.
Legacy Tower is just across the tollway from the $3 billion Legacy West development, which includes new office campuses for Toyota, Liberty Mutual Insurance and JPMorgan Chase.
The area is one of the fastest-growing employment centers in the country, with almost 20,000 new jobs on the way.
If Legacy Tower sells for a record price, it will focus even more attention on what is already one of the Dallas-Fort Worth area's hottest real estate markets.
"It validates all our hard work the last 18 years creating the urban oasis which is no longer a suburb but the center of the universe, at least for North Texas," said Fehmi Karahan, who developed Legacy Town Center and is the lead partner in the 250-acre Legacy West project.
Developer Trammell Crow has decided not to build a second office project originally planned next to Legacy Tower and has switched the property to a residential high-rise.
This week, the developer's High Street Residential division provided updated plans for the project to Plano city planners.
Commercial real estate firm CBRE has been quietly marketing Legacy Tower to potential buyers, according to an investor who looked at the property.
A sale of the West Plano high-rise would follow closely several record transactions in Dallas' Uptown district.
The 21-story 2000 McKinney Avenue office tower in Uptown is set to sell to a German buyer for a record $500 per square foot.
And downtown Dallas' 55-story Chase Tower just fetched $285 million at sale to a New York investor.
Written by Steve Brown/Dallas Morning News