GlobeSt.com EXCLUSIVE: 105,062-SF Double Deal Closes Off Galleria North

Merit Energy Co. is adding 58,043 sf to a 50,000-sf headquarters spot while Broadlane Inc. of San Francisco is grabbing another 47,019 sf for its 75,000-sf regional office, Joel Pustmueller, principal in Dallas-based Peloton Real Estate Partners, tells GlobeSt.com. The 306,052-sf Galleria North Tower II at 13727 Noel Rd. is owned by the San Francisco-based Rreef.

Pustmueller says Merit set up a co-terminus end with an existing long-term lease and Broadlane struck an extension that runs until 2012. "There is no significant rollover until 2010," he says. Before the "no vacancy" sign went up, the building's quoted rent was $24 per sf.

Merit, which moved into the tower in late 2002, has dibs on all available space for the next two years except, of course, for Broadlane's carve-out, according to Pustmueller. Merit's headquarters, now on the fourth and fifth stories of the 14-floor building, will pick up the entire second, third and sixth levels. The second floor already was vacant; the third floor will be available in six to eight months; and the sixth floor will come in stages as multiple tenants' leases come due.

Broadlane, marking its fourth year on the top three stories, grabbed floors seven, nine and 10 for its expansion. The ninth floor recently was emptied by the Atlanta-based Coca-Cola Enterprises, which moved into 119,000 sf in Centura Tower at 14185 Dallas Parkway. Broadlane is taking over all that's available now. The balance will roll over within 18 months.

Pustmueller says he's uncertain if the duo shopped around. "I just know we pursued it to make it work for them," he stresses.

Jeff Ellerman with Dallas-based Staubach Co. bargained terms on Merit's behalf. Mitch Leit with CRES Partners in Los Angeles represented Broadlane, a healthcare technology provider.