CarrAmerica, First Industrial Courting Buyers for Class B Portfolios

The Chicago-based First Industrial isn't ready to discuss its plan although it's common knowledge that it's been actively buying older product in the region since the year began. CarrAmerica's plan, though, is pointed straight at Dallas, possibly putting some gain into the development of a third office building along the Dallas North Tollway. All that the Washington, DC-based CarrAmerica is saying at this time is "we're going to recycle this capital into higher quality assets in the Dallas area," Jeff Pace, managing director in Texas, tells GlobeSt.com.

The Holliday Fenoglio Fowler LP investment sales team of Jeff Stone and Andrew Levy is steering the campaign to sell an 83%-leased, institutional-grade package made up of the 178,000-Quorum Place at 14901 Quorum Dr.; 162,155-sf 5000 Quorum Dr.; 116,000-sf Quorum North at 15301 Spectrum Dr. in Addison; and 77,724-sf Two Mission Park at 1202 Richardson Dr. in Richardson.

Pace says CarrAmerica bought the four buildings in 1996. The decision not to pin a minimum price on the listing, he says, was made due to the hype to buy in Dallas. "In an aggressive capital market like we're in, most commercial properties aren't coming out priced because we don't know what influences might be out in the market," he says.

Josh McArtor, a vice president for Dallas-based Trammell Crow Co.'s investment sales team, is at the helm of the First Industrial sale. The portfolio consists of the 103,500-sf 2301 Centennial Way and 73,986-sf 1207 W. Crosby Rd., both in Dallas; 85,200-sf 1500 Broad St. in Mansfield; and 100,000-sf 2900 Avenue E in Grand Prairie.

The First Industrial listing rallied 45 confidential agreements within days of hitting the market, McArtor says. "There's just not much product on the market and not in the Dallas market by itself," he says, predicting the portfolio will generate upward of 60 agreements that will easily lead to 15 contracts. The deal's sweet spot is the average lease has 84.5 months left on the term. "On top of the in-place income stream, the leases are 12% below market rates," he says.