FORT WORTH--Transwestern Investment Group (TIG) has acquired a Cultural District-area asset on behalf of Diversified International Partners. CBRE in Dallas brokered the transaction of 550 Bailey, a 122,828-square-foot, seven-story office building.

“550 Bailey provided an opportunity to acquire an asset with a highly diversified tenant roster, which is consistent with our investment focus across the country – ultimately limiting our exposure to any one industry,” Jonathan Napper, vice president of acquisitions for TIG, told GlobeSt.com.    

Currently 98 percent leased with in-place rents approximately 15 percent below market, the property has undergone numerous capital improvements. Approximately $6 million has been invested since 2008 to transform the building, with renovations including remodeling the lobby and common areas, modernizing elevators, enhancing the exterior landscaping, and the construction of a covered walkway from the parking garage to the office building. Having been well maintained, limited capital expenditures are anticipated at the asset. 

Reps for the buyer maintain that the business plan will aim to retain tenants and roll rents up to market.

“This acquisition presents the opportunity to achieve a significant portion of the total return from cash flow and is consistent with the fund's desire to target office assets in infill markets with strong fundamentals,” says Collin Comer, managing director of acquisitions for TIG.