Premier Place Premier Placeis a 457,000-square-foot class-A office building with a62,000-square-foot fitness club.

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DALLAS—Top tier is the descriptor most used for an office assetlocated at 59010 North Central Expressway. Glenstar recentlyacquired Premier Place, a 457,000-square-foot class-A officebuilding, with a 62,000-square-foot Life Time Fitness club. Thesale price was not disclosed.

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"This was a unique opportunity to acquire a highly visibletop-tier property with an equally top-tier tenant roster in themost active investment market in the US," said Glenstar managingprincipal Michael Klein. "The property's location in Dallas isunparalleled, with direct access to the DART, and a myriad ofrestaurants, retail, hotels and apartments. It is truly one of thefew live-work-play environments in Dallas."

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The purchase provides new ownership with a boutiquehospitality-inspired repositioning opportunity. As such, Glenstarhas planned a multi-million dollar investment campaign that willtransform the building with a renovated lobby and conference centeras well as a coffee/cocktail lounge that will open up to aredesigned courtyard. In addition, the noted developer will debutGlenstar Connect, a tenant experience program.

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"Glenstar Connect was created to build communities withinGlenstar's managed properties," Glenstar principal Matthew Omundsontells GlobeSt.com. "From social gatherings, learning opportunities,health and wellness activities, and a chance to give back to thecommunity, we offer activities that appeal to all types ofinterests and personalities. We understand what today's pool oftalent wants–inspiring, vibrant, hospitality-infused workspacesthat build a sense of community."

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Glenstar will provide property management and constructiondevelopment services.

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"Amenity-rich buildings are critical from an employee recruitingand retention standpoint. We're looking forward to bringing ourinnovative brand and proven redevelopment strategy that will caterto what high-end professionals are looking for: a collaborative andengaging office environment," added Klein.

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Built in 1985 and renovated in 2014, the 20-story Premier Placesits in Dallas' Central Expressway Submarket. The covetedtransit-oriented location provides tenants with immediate access toSMU, Mockingbird Station, DART, The Katy Trail and Dallas LoveField Airport.

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For Glenstar, it's the latest addition to a quickly growingDallas portfolio that now totals 2.7 million square feet. Otheroffice properties in the area include Energy Square and the MeadowsBuilding, a five-building 1.1-million-square-foot office campus,and Terraces at Solana, a 1.2-million-square-foot office complexconsisting of eight class-A buildings on 72 acres.

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"Dallas' market fundamentals continue to tighten with more andmore corporations choosing to call the city home," said Omundson."A lack of new construction on North Central Expressway and theopportunity to acquire one of Dallas' marquee buildings were keydrivers of this acquisition."

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By the spring of 2020, Glenstar will have invested more than$200 million during the past five years with the repositioning andmodernizing of US office projects. Glenstar's portfolio currentlystands at approximately 9 million square feet.

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Net absorption in third quarter dropped slightly from lastquarter with more than 506,000 square feet of space taken up,yielding a total of 2 million square feet so far for the year,according to a report by CBRE. This total has far surpassed thetotal in year-to-date absorption compared to this time in 2018.

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Vacancy continued to remain flat in third quarter despitepositive absorption. This is due to 599,098 square feet ofcompetitive inventory introduced to the DFW market, the sheeramount of existing office stock in the metroplex and the generaltenant appetite for newer cutting-edge office product. Currently,there are 25 leased projects in the construction pipeline totaling5.4 million square feet with a pre-leased rate of 22%, saysCBRE.

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Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.