MIAMI-Locally based Parmenter Realty Partners has completed a $250-million real estate investment fund with plans to acquire approximately $1 billion in real estate, mainly office properties, over the next three years. Parmenter has already acquired approximately one million sf in the Southeast and Southwest from the fund, called Parmenter Realty Fund III.

The company will continue to target property in these areas for acquisition. Among properties acquired were Las Colinas Towers I & II in Dallas in July for $44.5 million, or $78 per sf. The property consists of two class A office towers totaling 470,000 sf and one class B property with 80,000 sf. Equity invested in the transaction was $14.1 million.

The purchase price of the property was below 40% of replacement cost, with the building's occupancy at 50% in an improving market. The company plans to make capital and infrastructure improvements to reposition the building as class A.

"We continue to have a strong commitment from some of the nation's premier university endowments, charitable foundations and high-net worth individuals," says Parmenter founder and CEO Darryl Parmenter. "The investors believe in our core tenants, proprietary metrics and proven record of creating value and strong returns on investment through strategic real estate acquisition and development."

Formed in 1989, Parmenter has acquired distressed infill office properties at prices below replacement cost with the intent of adding value to the properties until they are stabile and can be sold to institutional markets. "With job growth expected to rise in our target areas, coupled with our ability to recognize numerous properties for purchase below replacement costs it has created a 'perfect storm' opportunity to enhance value and improve cash flow," says Parmenter COO and managing partner Andrew Weiss.