100,000-SF Office Building Rolls for $11M

The 83%-leased office building at 8650 Freeport Parkway has been picked up by International Capital Partners of Scottsdale, AZ, which marked its second purchase in the region this summer with the closing. Tom Donahue, the firm's founder and CEO, tells GlobeSt.com that a new tenant already is eyeing the balance of the two-story building's open space.

Donahue says the appeal to chase the deal was the Freeport submarket. "We have studied a lot of the office tenancy. The absorption was very strong," he says, adding its proximity to Dallas/Fort Worth International Airport also played into the decision. "And, it's good looking."

Donahue says there are less than 10 tenants on the roster, led by Lucent Technologies and Brinks Inc. As for the lease rollover, he says it's not a company practice to disclose that information for its deals. The eight-year-old, class B building, situated on 6.1 acres, carries a quoted rate of $15.20 per sf to $17 per sf plus electric, according to the North Texas Data Exchange. Stream Realty Partners has held onto the leasing assignment. The management falls to the owner's recently opened Dallas office, which is led by David Lampe and Raleigh Blakely Jr.

Donahue says he's looking all over Dallas/Fort Worth for more multi-tenant office, industrial and mixed-use properties to buy. The sweet spot is $10 million to $30 million; the plan is to amass a couple million sf in 18 to 24 months. Earlier this summer, the investment and development company bought Research Center, a 15-acre business park in Plano.

"From our standpoint, we consider Dallas a very vibrant market," Donahue says, "with similar attributes as we've seen in Phoenix over the past 15 years." He says the private company typically holds two to five years.

Andrea Peskind and Brad Thornburg with Cushman & Wakefield of Texas Inc. marketed Freeport Corporate Center. In the past week, Morgan Stanley Dean Witter & Co. sold another piece of a portfolio from a one-time partner.