Sources close to the deal have confirmed that Prime Income, the real estate arm of the Gene E. Phillips Children's Trust, is poised to buy 600 Las Colinas from TGS Properties Ltd., an affiliate of TGS North American REIT of Calgary. The REIT picked up the 22-story, multi-tenant office building at 600 E. Las Colinas Blvd. in a $200-million acquisition of retail and office assets that included two Texas deeds. The canal-fronting high rise is best known as the headquarters of Archon Group LP, which spent most of 2002 looking for a buyer. Archon and New York City-based Whitehall Funds co-owned the building.
The sources say Prime Income has placed a contract with a 15-day look and 60-day close. Gene E. Phillips, the trust's representative, is widely considered one of the largest landowners in Dallas/Fort Worth. Through affiliates, his present Urban Center stake is roughly 45 acres.
The Urban Center's claim to fame is a Fortune 100 and 500 corporate tenant base. The under-contract building is considered one of the best addresses in the center, second only to Williams Square, the centerpiece of Atlanta-based Cousins Properties Inc.'s Dallas-area portfolio.
The 22-year-old 600 Las Colinas, renovated in 1998, sits on five acres. It was rumored that the REIT paid more than $200 per sf. Dallas County, though, has the property assessed at $35.2 million. According to the North Texas Commercial Association of Realtors' database, 600 Las Colinas has 57,762 sf available for lease at $17 per sf. Since the REIT took over, Peloton Real Estate Partners of Dallas has managed and leased the building.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.