$2M Repositioning Plan Revs Up

The Dallas-based Granite seized the deed to the eight-story office property in early April after buying a New York City investor's note from Japanese lender, Sanwa. Elman Investors acquired the asset in June 1989, an investment representing one of the Telecom Corridor's success stories with its long-term lease to Nortel Networks. But, the Wall Street tech wreck triggered a downfall. Elman was close to backfilling the building with Blue Cross/Blue Shield, but then it opted for space across the street. That's when Granite and its peers started chasing the deed as word got around that Sanwa was taking it back.

Elman previously told GlobeSt.com that he presented a plan to the lender UFI, Sanwa's predecessor, that would have staved off foreclosure. Nortel's loss was so crippling that the building's 2001 assessment of $23.7 million was lowered to slightly more than $13.1 million for 2002.

Mark Harrison, Granite leasing manager, will spearhead the marketing plan. Built in 1985, 2350 Lakeside sits on about 6.4 acres just east of Central Expressway and is viewed as a prime address within the Telecom Corridor. "This is an ideal opportunity for users of 150,000 sf or greater," Greg Fuller, Granite's managing director in Dallas, said in a press release. "Our position in acquiring 2350 Lakeside allows us to be patient looking for large users that want the highway exposure, modern technology and solid ownership."

The $2-million upgrade plan is aimed at returning the building to "like-new status both inside and out," Fuller said. Work will start in 60 days on a plan for phased-in deliveries of upgrades, some of which will be held in abeyance as part of the normal tenant improvement sales package. The DalMac Cos.-developed building was recently re-measured, with the final count now 200,563 sf instead of 206,860 sf as prior tax records show. The building has floor plates of 24,656 sf and the added perk of a 650-space parking garage.