Younan's 190,000-SF Win Opens Galleria Door

"We are buyers; we're not sellers at this point," says Zaya S. Younan, chairman and CEO of the Los Angeles-based investment group. The just-closed deal for 4851 LBJ Freeway is the only class A building in the Galleria submarket in Younan's nine-property, 3.7-million-sf Dallas portfolio.

"This is the beginning of a long streak of acquisitions in that submarket," Younan tells GlobeSt.com. "The Galleria is the Beverly Hills of Dallas. It's a premier submarket and it will continue to be a premier submarket."

As always, the closing has jumpstarted a renovation of the 74%-leased, 12-story building. Younan says $1.5 million to $2 million will go into the makeover "so it can compete with the other class A buildings in the Galleria." The open space has been tagged at $21 per sf, full service.

Galleria Plaza is coming with some rollover, about 30% in three years. "That submarket has strong absorption. Rollover is a welcome opportunity for us," Younan says as he tosses down the gauntlet for his leasing and management team, Trammell Crow Co. The roster's top space takers are BenefitMall, Matrix Resources Inc., CBIZ Valuation Group LLC, American Re-Insurance Co. and Associated Press' regional office.

Younan secured acquisition financing from Bank of America for an all-cash transaction as a back-up buyer after two other contracts fell out. Gary Carr, executive vice president in Dallas for CB Richard Ellis, represented the seller while Younan had in-house broker, Brian Hennessay, doing his bargaining for the 20-year-old building.

In early July, Younan closed on the 900,000-sf KPMG Centre in Downtown Dallas. If the shop talk's correct, he's in the final stretch to acquire a 2.2-million-sf portfolio from Chicago-based Transwestern Investment Co. Despite the fast-paced buying, Younan does have one asset for sale in Dallas--the Holiday Inn Select hotel, the last piece of a hospitality portfolio. The deed, he says, goes in 20 days so he can focus 100% on amassing office properties. "We are in pursuit to buy as much as we can so when the market turns we are the best positioned," he says.