DALLAS-FirstService Capital Partners has gained control of a 681,780-sf flex office portfolio, turning the deeds in six weeks with $38.3 million of acquisition and renovation financing. The off-market deal is a value-add play with a near 50% vacancy and redevelopment opportunities.
The buyer, led by Todd Poppert of Denver, couldn't be reached for comment prior to publication time. His partner, Larry Glickman, and their local tenant rep, Kevin Brookmole with Colliers International Inc., deferred all comment to Poppert.
Colliers FirstService Fund, the deal's sponsor, acquired the package from Emerson Partners Inc. of Dallas. It's believed to be the fund's first purchase in Dallas/Fort Worth. The fund focuses on distressed investments in markets with high-growth potential in the US and Canada.
Wrightwood Capital drove the deal across the finish line with a three-year, interest-only, floating-rate loan based on the 30-day Libor, Christopher J. Martineau, senior director in the lender's Dallas office, tells GlobeSt.com. "Our sweet spot is doing value-added acquisitions," he says. "This clearly fit the bill." The 23-building package has been re-branded as the Colliers Office Portfolio.
The mid-1980s buildings are located in eight office and industrial parks in Richardson, Plano, Irving and Carrollton. The Chicago-based lender says the plan is to raze some buildings "to meet market demand for smaller offer space in the area" while others might be flipped.
Steve Roth with Chicago-based Cohen Financial, which was sold in June to the Toronto-based FirstService Corp., brought the deal to Wrightwood, which specializes in highly leveraged transactions. Martineau says the financing went full circle in six weeks despite the dynamics of funding a nearly half-empty portfolio of single-story vintage space. "He knows the market," Martineau adds. "I think they're going to be successful at leasing the product."
Martineau says the bright side is there isn't any significant lease roll in the tenant roster. "It's a pretty stable tenancy," he says.
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