Leasing Team Changes for 639,786-SF Office Portfolio

Colliers' Greg Hoffman, who leased Merit Texas Properties LP's class B portfolio nearly five years ago, credits a two-decade relationship with the off-market pick-up. The deal, he tells GlobeSt.com, is the first seed for a plan to build Colliers' local team into a leading leasing force on regional turf. Fobare Commercial Ltd. did not return telephone calls seeking comment on the loss of the long-time assignment.

"Fobare did an excellent job on these properties," Hoffman stresses. "It was more the relationship that I had with Merit."

The 78%-leased portfolio consists of the 295,440-sf, three-building Merit Centre at 5710, 5720 ad 5728 LBJ Freeway; 133,038-sf, two-building Parkway Plaza at 14110-14 Dallas Parkway; 46,199-sf Town Trails Office Park at 17000 Preston Rd.; 100,162-sf Riverbend I at 12221 Riverbend Dr.; and 64,947-sf 400 Chisholm Place. Occupancies range from 71% at Riverbend I to 94% at Parkway Plaza II. Occupancies range from 71% at Riverbend I to 94% at Parkway Plaza II.

Hoffman says the leasing campaign, including renovation or possible redevelopment of at least one building into office condos, is still being formulated. In ramping up the plan, the leasing chief has opened an office in Merit Centre's 5720 LBJ Freeway, sharing halls with the owner. He says the decision was based on the work that needs to be done as well as the location. The mid-rise complex's occupancy averages 73.6%.

"The first thing is to see what kind of condition the space is in," Hoffman says, "and if we're priced right with where the market is. They're [Merit] doers and they make deals. The key is to find out what we do have. It's real estate 101." The portfolio's average rent is $13 per sf, full-service for the Stemmons Corridor properties and $17.50 per sf, full-service, for the tollway buildings.

The locally based Merit Texas acquired the 1980s-era buildings between 1997 and 2001. The owner will continue to manage the assets, filled with predominately small tenants. Hoffman says the going-forward strategy won't re-direct the "small office" packaging. "It makes the most sense for this owner because it limits the exposure," he explains.

The Merit assignment, though, is just the first of several that Hoffman's targeted in the region. "Colliers is a major player in other cities in project leasing," he says, adding his expectation is to put the Dallas/Fort Worth portfolio on par with its peers.