KBS Realty Advisors of Newport Beach, CA won the nod for the 145,610-sf McKinney Place at 3131 McKinney Ave. while Triple Net Properties LLC of Santa Ana, CA scored the win for the 374,165-sf, 18-story high rise at 3500 Maple Ave. In both cases, the CB Richard Ellis Inc. team of Russell Ingrum and Gary Carr and CBRE Strategic Partners' principal Michael Burrichter masterminded the back-to-back sales. The dealmakers weren't available for comment prior to publication time. Both buildings, situated less than a mile apart, went on the sales block in the fall.
McKinney Place's leasing and management reins were turned over to Transwestern Commercial Services' senior vice president Kim Brooks and vice president Matt Didyk. Local firm Capstar Commercial Real Estate Services, which had been overseeing McKinney Place, held fast to the 3500 Maple Ave. assignment.
A KBS spokesman says the location and dynamics of the Uptown/Turtle Creek submarket were the driving forces behind its decision to buy the 89%-leased McKinney Place--its third acquisition in less than three months in Texas. The day before KBS bought McKinney Place, it closed a $20-million deal for the fully leased Travis Oaks, a 123,434-sf, multi-tenant office building at 5113 Southwest Parkway in Austin. The seller was the Chicago-based Transwestern Investment Co., which had TCS Austin executives Hale Umstattd and Ty Puckett brokering the deal. And in October, KBS paid $41.5 million for the seven-building, 297,593-sf Lincoln at Legacy in Plano, north of Dallas. The buying spree has pushed KBS' Texas portfolio, now valued at $692 million, to 7.3 million sf.
The KBS spokesman says the plan is to hold McKinney Place, an eight-story office building atop a six-story parking garage, as a long-term investment and "maintain its strong occupancy." At this time, no renovations are planned for the 22-year-old structure.
As for 3500 Maple, it was renovated just three years ago when CBRE Strategic Partners bought it. The 20-year-old landmark, complemented by a six-story parking garage, is 94% leased, with no rollovers for "two to three years," Johnny Johnson, a Capstar partner, tells GlobeSt.com. "It is well stabilized. With the investment sales market being what it is today, it was the optimum time to sell." Top tenants are Heritage Capital Corp., Katz Communications Inc., Hanson Aggregates West Inc. and the Rose Walker law firm.
Johnson says McKinney Place "is the exact same story." It too has no lease rollovers for at least two years. Its roster is a mix of mostly law and accounting firms.
Triple Net had in-house exec Chris Rooney overseeing its negotiations; KBS had an acquisitions team from Chicago leading its bargaining. Triple Net's financing, provided by Wachovia Bank, was arranged by Wally Reid, Matt Kafka and Adam Jackson of Holliday Fenoglio Fowler LP. Details weren't available about KBS' financing arrangements.
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