The Nashville-based REIT closed the deal with Goddard InvestmentGroup LLC of Atlanta in recent days, allowing the one-year owner tocross off another piece of Dallas real estate on its "to go" list.The Pyramids, positioned on 6.6 acres at 9101 and 9201 N. CentralExpwy., came to market in May with two other class A officeproperties, with more than one million sf, in an opportunistic moveto take advantage of value-add capital looking for landing spots,according to aprevious interview with the seller.

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Healthcare Realty didn't return telephone calls to comment onthe deal, which surfaced two days ago in an SEC filing. The sellerindicated it was unable to comment and its sales team confinedcomments to a press release that was issued late last night. TheHolliday Fenoglio Fowler LP team consisted of senior managingdirector Andrew S. Levy, director Todd W. Savage, director JohnBourret and analyst Kelsey Roop.

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Seller financing at a fixed-rate interest and 70% LTV cap was anoption of the offering, but it couldn't be determined by deadlineif the REIT leveraged the 98%-leased Pyramids' purchase in any way.The lease stack has Baylor in 95,000 sf until June 2020 of the145,963-sf south tower and the Dallas Plastic Surgery Institute in33,664 sf through June 2023, with the multi-tenant balance mostlyfilled by medical tenants. The Pyramids' 145,426-sf north tower isfully occupied by XO Communications Inc., with a lease that expiresin July 2010.

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According to the buyer's SEC filing, XO Communications plans tovacate the complex when its lease expires that, if it happens, willset up the value-add for the acquisition story. HFF's marketingflyer reported XO's lease is about $10 per sf below current class Arates in the tony mixed-use corridor, where class A office space iscommanding $26.60 per sf on average. Capstar Commercial Real EstateServices in Dallas has been leasing the Pyramids.

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Developed in 1999 by Dallas-based Champion Partners, thePyramids complex sits at the epicenter of one of the state'slargest medical districts in an infill location adjacent toNorthPark Center, one of the Southwest's top-ranked malls. Close byis the 866-bed Presbyterian Hospital of Dallas and 660-bed MedicalCity Hospital. The Pyramids' northern line abuts the buyer's97%-leased North Central Medical Plaza, which it bought in April2006. Assessed at $51 million by Dallas County, the abutting13-acre campus holds the 110,000-sf Carrell Clinic Centerand a 140,000-sf, six-story multi-tenant, medical office building,with its halls filled by more affiliates of the locally basedhealthcare provider.

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HFF characterizes the Pyramids as two of the newest officebuildings in the North Central Expressway corridor, with 12competing buildings and all more than 90% leased. The complexincludes a six-story garage with 977 spaces and another 150 ofsurface spots. The acquisition bumps the REIT's holdings to morethan two million sf in Dallas/Fort Worth.

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