Buyer Griffin Partners put down all cash for the 70%-leased building at 16415 Addison Rd. just to meet the 45-day requirement, Drew Lewis, Griffin's co-chairman, tells GlobeSt.com. Financing will be secured now that the deed's in hand.
Lewis says the going-forward strategy is a competitive-based push to fill the 30% vacancy in the 20-year-old office building, bringing the space to market at $15 per sf to $16 per sf plus electric. The locally based Capstar Commercial Real Estate Services has been hired to lease up the class B building. Griffin will manage the holding, which is complemented by a 450-space parking garage.
Though it has blocks of open space, the nine-story building's 25 tenants are locked down fairly securely. Lewis says only two leases roll this year and maybe one in 2005. The lead tenant, US Specialty Insurance Co., occupies 28,000 sf with a lease that doesn't expire until 2013. The opportunistic play attracted more than a dozen offers for the 3.8-acre property assessed at nearly $7.4 million.
With the deal completed, Lewis says he'll go back to looking at a couple properties in Dallas/Fort Worth and one in Houston that were on his radar screen as possible purchases, but set aside to meet the Fort Worth-based REIT's 45-day turn. A half dozen Houston investors, one pension fund and two equity fund investors are funding a buying spree to amass 500,000 sf to one million sf of office and industrial product in three or four years of North Texas shopping.
Trammell Crow Co.'s John Alvarado, senior vice president of investment sales, steered Addison Tower sale and is honing in on a second closing. Still to come is the sale of the 133,799-sf, seven-story 5050 Quorum, which is under contract to Behringer Harvard Funds of Dallas.
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