JV High-Rollers Put Up About $163M for Colonnade Complex

The Chicago-based seller will air some details about the deal in this morning's earnings call as will CarrAmerica in its earnings statement, set for release this afternoon. JPMorgan Stanley, acting on behalf of some institutional investors, and CarrAmerica scored their win by forming an 80-20 partnership to take title to a 90%-leased, class A cluster at 15301-05 Dallas Pkwy.

"It went pretty smoothly," says Chris Hendricks, vice president and director of operations for the Washington, DC-based CarrAmerica. The Colonnade will roll into a 2.3-million-sf portfolio of CarrAmerica-owned or managed assets in the LBJ Freeway-121 corridor along the Dallas North Tollway.

Hendricks tells GlobeSt.com that the JV was particularly interested in the Colonnade because it's in a submarket with 2.3 million sf of other CarrAmerica-owned or managed class A space. "We feel confident it will perform well in the future," he says.

Robert Buell, CarrAmerica's senior vice president of leasing, says the largest contiguous block is just 12,000 sf. Buell's team will lease and manage the complex, hoping to fill the 10% vacancy with a $22.50-per-sf plus electric rate. The Colonnade's lead tenants are Bank of America, Palm Harbor Homes, United Surgical Partners and WMC Mortgage Co. The lease roll is being kept under wraps.

The buildings are individually assessed. The 292,490-sf, 12-story Colonnade I at 15301 Dallas Pkwy., sitting on eight acres, is assessed at $32.3 million. The 314,125-sf, 14-story Colonnade II, positioned on 2.3 acres at 15303 Dallas Pkwy., is tagged at $34.7 million and the 377,639-sf, 16-floor Colonnade III, sitting on 2.3 acres at 15305 Dallas Pkwy., is assessed at $26.6 million.

Equity's piecemeal sales of the 4.2-million-sf, 14-building Dallas/Fort Worth portfolio are being scheduled as close together as possible. The Bentley Forbes Group of Los Angeles is still in the game for EOP's Preston Center piece. However, the L.A.-based Colony Capital LLC reportedly pulled its contract for the lion's share of the package in Dallas and Houston, a deal that would have allowed a quick and easy break from the state. In the first quarter, CB Richard Ellis Investors LLC of L.A. paid $65 million for a pair of office buildings in Las Colinas.