$50M-Plus of Texas Cash Buys Six Office Buildings

A joint venture of Texas-based private investors made the portfolio buy. Sam Rosenzweig of Dallas-based Rosenzweig Properties was the consultant on the transaction, which brought a straight 10 cap, David Brauss of Today Realty Advisors tells GlobeSt.com.

The buildings, totaling 516,456 sf, have one to three tenants each, with lease rollovers of five to 10 years, Brauss confides. Most of the structures are 100% leased. The tenant rolls are filled mostly with creditworthy high-tech firms.

Brauss says negotiations got under way about three months ago with the investment group. Today Realty Advisors was the equity partner for the development of the properties built in 1999 and 2000. CMC Commercial Realty Group of Dallas was the development partner and leasing agent.

Brauss says the properties sat on the market a long time "because nobody wanted to pay the cap rate." He says most of the debt was retired with the proceeds. The 88,570-sf Coppell Tech Center II at 1322 Crestside Dr. in the City of Coppell sold for under cost. "We took some of the bad with the good," he says of the freshly closed deal.

In addition to Coppell, the package included Highpoint Oaks 1 and 2, totaling 150,190 sf, at 2701 Highpoint Oaks Dr. in Lewisville; Royal Freeport Tech Center, 80,500 sf, at 4343 Royal Lane in Irving; Jetstar Tech Center, 92,051 sf, at 4040 W. Royal Lane in Irving; and Metroplex 2, 105,145 sf, at 2304 Tarpley Rd. in Carrollton.