5320 Legacy Drive

PLANO, TX-Closing its sixth commercial real estate transaction under its equity investment program, Transwestern Investment Management (TIM) and State Farm Life Insurance Co. bought the 379,404-square-foot 5320 Legacy Drive, located at the Campus at Legacy. With this closing, the partners claim a class A office asset that is 100% leased to Denbury Resources, which took down the space through a long-term lease in 2010.

Collin Central Appraisal District notes that the office building’s seller is Spear Street Capital of San Francisco. The tax district assesses the asset at $53 million, though the sales price was not readily available.

According to TIM president Laurie Dotter, CBRE widely marketed the asset, and it came to the attention of Collin Comer, TIM’s managing director of national acquisitions. “He and his team are constantly on the lookout for assets that fit our criteria,” Dotter explains. “He has a good network and relationship with all the investment sales teams, and he’s looking for deals brought to the market by all.” Jonathan Napper, TIM’s  vice president, acquisitions, also helped get the CRE transaction closed.

This is not to say that TIM and State Farm are going to like every single deal that comes down the pike. Dotter tells GlobeSt.com that, for this particular equity program, the partnership is looking for core assets in outstanding locations in desireable submarkets, that contain high-quality tenants. “We aren’t necessarily going to New York or the very heated markets, but we want the best-in-class submarkets in major metropolitan areas that have experienced job growth,” she adds.

Late last year, TIM and State Farm acquired the 260,000-square-foot 198 Inverness in Englewood, CO, a suburb of Denver. That office building is the headquarters of Catholic Health Initiatives which, much like Denbury did with 5320 Legacy, signed a long-term lease. “If you look at Inverness in Denver and the Denbury building, they’re very similar; both are leased to investment-grade credit tenants,” Dotter comments.  The partners also acquired some multifamily properties as well.

5320 Legacy was originally part of the old EDS campus, which was sold several years ago to KDC. According to the CCAD, KDC sold the asset to Spear Street in 2007.

Dotter says State Farm and TIM have several assets in the pipeline that are ideal for acquisition. But she’s a realist; there is a lot of competition out there for core assets these days. This is the case, especially in the Legacy submarket, located approximately 20 miles due north of Dallas’ CBD. “You don’t know if you’re going to get assets these days because it’s competitive,” Dotter comments. “But State Farm always does what they say they’re going to do, and that’s a definite advantage of working with them.”