International Plaza is Once-in-a-Generation Space

FARMERS BRANCH, TX—One of the most notable office properties on the lower Dallas North Tollway has a new owner. Investment firm Taconic Capital Advisors LP recently acquired International Plaza I and II, a twin-tower campus totaling 757,000 square feet in an off-market purchase.

Designed by HKS Inc., the International Plaza I and II towers were developed in 1999 and 2002, located at 14201 N. Dallas Pkwy. and 14221 N. Dallas Pkwy., respectively. The buildings have been occupied from the outset by JPMorgan Chase and Fannie Mae. Both companies recently moved to new campuses in Plano, leaving available the largest block of class-A office space in the Dallas-Fort Worth region.

International Plaza is Taconic Capital’s first acquisition in North Texas. Andrew Lam, who led the acquisition, said Taconic was attracted to the asset for a number of reasons.

“International Plaza is an institutional-grade class-A office complex with great visibility right off the lower tollway,” he said. “We are impressed by its timeless appeal, high-quality construction, campus-like environment, unmatched parking and efficient floorplates. It offers the most available contiguous class-A office space in the entire MSA. Combine that with the continued expansion and diversity of the Dallas economy, and the area’s strong job sector—you have a once-in-a-generation opportunity.”

The 13-story building totals 351,000 rentable square feet and is connected by a sky bridge to the 15-story International Plaza II, which totals 406,000 square feet. Because both buildings have been fully occupied since they were developed, this is the first time other tenants will have the chance to lease space in the buildings.

“International Plaza I and II is a gem that has been hidden in plain sight,” Lam said. “We’re excited to reintroduce this iconic asset back into such an active market—it has enormous potential.”

Although the property has been exceptionally maintained, Taconic Capital plans to invest significant capital to make upgrades at the campus and add numerous amenities. The company selected Cushman & Wakefield to oversee leasing, property management and related services. Lauren Napper, Matt Schendle, Trey Smith and Chris Taylor of Cushman & Wakefield will head leasing efforts at International Plaza I and II.

“We have more than 750,000 square feet of existing class-A office space available in one contiguous block, which is unheard of in this market,” said Taylor. “We will be pursuing large corporate users that want to be in a prestigious class-A facility with multiple amenities and a great location at below build-to-suit pricing. We’re eager to begin marketing the campus, particularly with the number of big deals in the market right now.”

Taylor said Dallas-Fort Worth continues to benefit from both corporate expansions and organic growth. He anticipates solid demand and says the strength of Taconic Capital gives International Plaza I and II a boost.

“Having a well-funded owner creates clarity and sends a strong message with regard to the tenant improvements and broker commissions necessary to support lease-up of the property,” Taylor said.

International Plaza I and II has a technological infrastructure consisting of dual-feed electric and a raised-floor environment throughout the campus. Redevelopment plans call for significant upgrades to the fitness and conference centers, enhanced and increased dining options, and a reinvention of the project’s expansive outdoor space.

According to Cushman & Wakefield’s first quarter 2018 statistics, average lease rates for class-A space are $28.95 per square foot on the lower tollway (Far North Dallas South), $36.76 per square foot in Legacy/Frisco (Far North Dallas North), $47.24 per square foot in Uptown and $42.42 per square foot in Preston Center, GlobeSt.com learns.

“Availability continues to tighten and pricing continues to escalate in some of the hotter markets. For true class-A space, there’s about a 20% to 25% differential in lease rates for buildings on the lower tollway. People are realizing the value of the LBJ Express and the location midway between the Dallas central business district and the northern suburbs,” Smith tells GlobeSt.com. “Many of the buildings on the lower tollway have undergone major renovations to compete with newer product in Uptown and Legacy. There has also been a retail resurgence with Village on the Parkway and all along Belt Line, and in and around the Galleria.”