308,038-SF Class A Asset Tops $150 Per SF Mark

The plan is to "hit the ground running" with the acquisition of the three-story buildings at 2201 and 2301 W. Plano Pkwy., both of which "are in good condition," according to William Rogalla, senior vice president and acquisition officer for the Newport Beach, CA-based KBS Capital Advisors. He tells GlobeSt.com that not only is the complex in tip-top shape, but its lease roll is minimal for the next five years. The Memphis-headquartered FedEx/Kinko's occupies 31% of the asset and Hartford, CT-based United Healthcare Insurance Co. leases 22%.

Rogalla says the upside is a double-edged play based on filling the asset's vacancy and the submarket's rising rental rates. Key to the plan is the 21-acre asset's positioning in the Texas 190 office corridor, with the sale standing as a beacon for the "Who's Who" of metroplex developers planning or building more office space in the pocket.

Plano Corporate Center I and II did a routine spin on the market for 30 days before the winner was picked. "It was well received," says Jack Crews, one of three managing directors for Jones Lang LaSalle's Dallas investment sales team. "The 190 corridor is a very hot topic." The team, including Evan Stone and John Alvarado, steered the sale for the developer, Lincoln Property Co. of Dallas.

The corridor's buzz is growing stronger each day as office users who live in the far north suburbs take steps to avoid the congested commute into the city. Office demand has grown 8% per year since 1990, according to Rogalla. "It's a great location and has good floor plates," he adds.

Plano Corporate Center I, totaling 153,349 sf, was developed in 1999. The sister building, with 154,689 sf, rose in 2001. Walter Foster, KBS' senior vice president, oversees the owner's portfolio in Dallas, Austin and Houston. Transwestern Dallas' Kim Brooks and Justin Miller will lease the asset and PM Realty Group's local team will manage it.

It's the fourth time this year that KBS has closed on a Dallas-area office property. In August, KBS REIT bought the 131,040-sf Corporate Express at 2230 Ave. J in Arlington. The other buys were under KBS Realty Advisors' umbrella: the 98,750-sf Parkwood Place I at 5601 Democracy Dr. in Plano and 109,810-sf 2525 McKinnon in Uptown.

"There were just some nice opportunities that presented itself in Dallas in 2007," Rogalla says. And, he hints, more deeds could be scooped up before the year ends. "We're evaluating a couple of options," he says.