Six-Year Owner Sells Class B Office Complex

A limited partnership of the Haggard family bested six other would-be buyers, several of whom had 1031 exchange funds from California and Florida, to get the second deed in a Texas disposition by Seattle-based Pacific Rim Land Holding Co., Ron Hebert, investment associate for Marcus & Millichap Real Estate Investment Brokerage Co., tells GlobeSt.com. The deal for the Park Center complex at 830-50 Central Parkway E, crossed the finish line within days of Pacific Rim's first hand-off, Furneaux Creek shopping center at 2625 Old Denton Rd. in Carrollton. The seller's last property is set for a December trade, according to Hebert.

Thomas E. Mastrogiovanni, director of leasing and business development for Haggard Property Group in Plano, says Park Center builds in expansion capabilities for the firm's existing tenants in the pocket of office and flex buildings, but that wasn't the strategy behind the acquisition. "It looked like a good opportunity," he explains. "Certainly, this will allow backup, but it kind of made sense for us to buy the building next door."

The 1980s-era Park Center, renovated last year and bringing close to its ask, is a 4.1-acre footprint at the hard corner of Park Boulevard and Central Parkway. The class B asset consists of a two-story office building and a pair of flex office, single-story structures, with its largest open contiguous block totaling 10,300 sf.

Hebert says Pacific Rim, a six-year owner, had two tenants move out during the three-month marketing. Haggard's "strong offer" was the dealmaker, he adds.

There is one near-term lease rollover for 2,500 sf--and it's pushing toward a final signing, according to Mastrogiovanni. The goal with the value-add purchase is to achieve an effective rent of $13 per sf to $14 per sf plus electric, he adds. Haggard affiliate Double H Realty Services LLC, a Haggard affiliate, will manage the property while its sister company will lease it. Park Center pushes the Haggard family's commercial portfolio to 750,000 sf in Collin County and Richardson in addition to roughly 400 acres of prime development land.