Barry Brown, senior director for Dallas-based Holliday Fenoglio Fowler LP confides that the high-profile listing attracted at least a dozen offers in a heated face-off by "a combination of institutional and foreign capital looking to acquire the property." RREEF was the buyer of choice with its "excellent track record for closing" as much a part of the final decision as the price, he explains.
Seller Blackstone Partners of New York City got a check about four months after the fully leased 5950 Sherry Lane was put on the market. Its short run is even more impressive since it was up against four other trophy properties being preened for sales. Word has it that next to close will be 2100 McKinney, a 357,691-sf high-rise owned by Crow Holdings and Westbrook. That deal has fallen under contract reportedly at $200 per sf to a New York City buyer who's not talking until the papers are signed.
Few would dispute the strength of the Preston Center submarket, bolstered naturally by high barriers to entry. "From an exit strategy, the investors' band of liquidity is broader in the submarket," says Brown, who was assisted in the dealmaking by Linda Simpson, formerly of Holliday Fenoglio Fowler. There's also the lack of land for building the grand brass-and-glass high-rises so much a part of the Dallas metro skyline.
The RREEF buy is a harbinger that institutional capital has in fact returned to Dallas, say those in the know. And it's definitely no surprise that its first buy in several years is positioned in Preston Center, where most of the formidable addresses belong to institutional names.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.