Credit Union Signs 10-Year Lease for Class A Space

The nod went to 5429 LBJ Freeway, a 232,541-sf office, 10-story structure still trying to recover from the loss of a near full-building tenant. The credit union lease puts occupancy at 30%.

"I think the other buildings were equally competitive," says Kathy Mulgrew with Houston-based PM Realty Group's Dallas office. "The president just said to me "we really like your building.'" She tells GlobeSt.com that the win came with a few months of free rent, an effective rate of $15.17 per sf and two bumps that cap at $17 per sf. The deal takes down about three-fourths of a floor and builds in an expansion option for the balance plus sets up a right of first refusal for retail space, with a drive-through window, on the street level and a monument sign, she adds. The building, with freeway frontage, has a quoted rent of $16 per sf.

Mulgrew says the credit union began searching the Galleria and Dallas North Tollway area about six months ago. The 5429 LBJ Freeway structure, part of a three-building campus owned by the New York City-based Devon Properties LP, was gutted after Fujitsu Transaction Solutions two years ago moved the headquarters team to Hall Office Park. With the deal signed, Mulgrew says drawings are being finalized so bids can be floated for a finish-out contractor.

The PM Realty team included Kurt Cherry and Bernard Deaton, senior vice president and central division director. Lawrence Gardner and Darryl Mullin with Cushman & Wakefield of Texas Inc. represented the credit union.