Class A Office Complex Trades for $11M

Sources tell GlobeSt.com that the Greenhill Park complex at 14131-35 Midway Rd. inside the Addison city limits drove a "competitive bidding process with numerous offers." Sold by the Archon Group of Irving, TX, the asset consists of a 12-story office tower, three-story garden-style office building and a five-level parking garage, all sitting on 5.2 acres tied to a ground lease with 80 years left on the term, according to AmeriVest, which closed the sale late last week. The annual rent payment is $642,000 until 2006 and jumps to $863,000 for the balance of the ground lease.

"Though AmeriVest typically purchases properties only on a fee simple basis, we felt comfortable in this case purchasing a leasehold interest due to the long remaining tenure on the ground lease and the superior economics we achieve at this extremely low basis on our purchase," Williams Atkins, AmeriVest president and CEO, said in the release, which included word of upcoming property improvements. The property was developed in 1986 by Trammell Crow Co.

An AmeriVest press release says the first-year cap rate exceeds 10%. The acquisition closed with about $5.3 million from the buyer's secured revolving line of credit and cash. A team with Holliday Fenoglio Fowler LP in Dallas brokered the transaction.

AmeriVest also owns Chateau Plaza in Uptown and Parkway Centre II in Plano, both like Greenhill Park being readily tailored for the buyer's niche of providing class A office space for small- to medium-size businesses. The 76%-leased Greenhill Park has 23 tenants, including Schlumberger and Daimler Chrysler. Average leased offices are 8,333 sf. Peloton Real Estate Partners, T.D. Briggs and Joel Pustmueller, hold the AmeriVest leasing assignments in Dallas and will be handling Greenhill Park too.