Shorenstein Investment Advisers is continuing its buying spree within the office sector, with a new 320,000 square-foot purchase in Dallas, Texas.
The Class A property, known as Sterling Plaza, was recently renovated to include several amenities, such as a conference center, a luxury tenant lounge and a fitness facility. Shorenstein, after the acquisition, plans to add to the building's appeal even more by improving the lobby, cafe, entryway and outdoor areas. The goal is to offer more of a hospitality experience at the 19-story office tower.
A big reason why the San Francisco-based firm chose Sterling Plaza was due to its location in the Preston Center submarket, which hosts a 4.3 percent availability rate thanks to limited office space in the area, according to Shorenstein. The company forecasts that number to tighten even more — but it expects to see "significant rent growth in the submarket."
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"Despite national office vacancy rates at historic highs, there are 'pockets of strength' in many markets across the country that we've invested in – where demand is at or above pre-pandemic levels, availability rates are healthy, and rents are rising fast," Colby Wick, managing director at Shorenstein, explained in a statement.
"The fundamentals in Preston Center are among the strongest we've seen nationally, and Shorenstein is excited to capitalize on the momentum."
The acquisition builds on Shorenstein's office investment strategy that targets areas with strong tenant demand and favorable long-term trends. In the past year alone, the firm has closed $1 billion in purchases across the asset class. Furthermore, it noted that it has "several additional acquisitions under contract."
Also, this is the second time in the past several months that Shorenstein has invested in Dallas' office sector. It last did so in September, when it purchased 388,000-square-foot office property, International Plaza II, in Lower Tollway. According to Shorenstein, rents have already increased by more than 25 percent in the submarket since the acquisition.
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Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
