Principal Talks Shop About 196,000-SF Buy

The purchase of One Hanover Park, a fully leased, eight-story office building at 16633 N. Dallas Parkway, marks Principal's first purchase in Dallas-Fort Worth in more than a year, Mark Hanrahan, principal of the Des Moines, IL-based investment group, tells GlobeSt.com. Principal has slid in Stream Realty Partners of Dallas to manage as well as lease the building. Transwestern Commercial Services' Dallas team previously managed the property.

Hanrahan stresses the no-buy hiatus is over and Dallas properties, not just office, are on the radar screen once again although nothing is under contract at this time. He confides that proposals have been placed for two premier industrial offerings around town. Principal has $1 billion to spend across the board for US acquisitions, according to Hanrahan. "We have plenty of capital for '03," he emphasizes. One Hanover Park, built in 1999, was one of Principal's first transactions to pass the closing table this year.

Principal Life Insurance Co. is the official buyer for a global group of investors who, as Hanrahan explains, "had become a little under-weighted in office." Principal, though, intends to lean more toward industrial, retail and multifamily this year as it scouts for Dallas-Fort Worth properties. A joint venture has been formed with BH Equities of Dallas to buy class B multifamily, a decidedly hot ticket but somewhat removed from Principal's past appetite in the class A sector in Dallas and Austin.

One Hanover Park is a multi-tenant property with Entrust Inc. as the lead. Lease rollovers average about five years, Hanrahan says. "There was no leasing risk," he says, noting it is a 60%-plus investment-grade credit transaction.

Hanrahan negotiated the One Hanover Park purchase, with Principal Real Estate Investors as the adviser. The well-known CB Richard Ellis Inc. team in Dallas, Gary Carr and Russell Ingrum, bargained for the seller, Intervest Cos.