Buyer Morstan Arapaho LP, led by Craig Johnson of Maylar LP in Dallas, immediately jumped into a rehab on a property at 301-323 Hilltop Dr., which has been on the wish list for some time. "We made an offer 1 1/2 years ago," Johnson tells GlobeSt.com, "but I think we got the guy at the right time."
The 3.4-acre acquisition is a rare find in a submarket of mostly high-tech office and flex product. "It's a good location in an underserved market," Johnson says of the pure warehouse product priced to lease at $4.25 per sf to $4.50 per sf gross or about $1 under the market average.
Johnson says a 10,000-sf lease is out for signature to add a fourth tenant to a five-tenant building with 34,000 sf sitting empty. Meanwhile, one of two lead tenants, American Glass Distributors, is adding 13,000 sf to its bottom line. Other tenants are Pilkington North America and a Chevron document storage division.
Joe Hynes of Hibernia National Bank's new Dallas office packaged a one-year acquisition loan, interest only at a floating Libor-based rate, using the lender's repositioning loan to turn around the capital in three weeks. Cary Krier of Dallas-based Bradford Co. represented the buyer and stays in place as the leasing agent. The seller is Kelly Holdings Association LP of Dallas, which bought the 38-year-old building in 1995, according to Dallas Central Appraisal District which has levied a $2.2-million assessment for 2003.
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