"We had done 80% of the work that was needed," Gary Walker, president of SCM Real Estate, tells GlobeSt.com about the pass. Walker and other local co-investors acquired the class B office building at 1601 E. Lamar Blvd. about 18 months ago, buying into the value-add deal at 50% occupancy and exiting at 75%.
Walker says Andrews-Dillingham, with partners in California and Dallas, had 1031 exchange funds to spend plus was drawn to the story of the city's three bridges and the under-construction Dallas Cowboys' stadium. The two-story office building, situated on 3.4 acres, will end up close to the proposed Baird Farm exit and bridge leading to GloryPark, a mixed-use development designed to surround the new stadium.
"We were happy to give some discount before our program was completed," Walker says, adding the all-cash buyer still pocketed the deed for less than the replacement cost. At sale time, a $500,000 interior and exterior renovation was under way on the 26-year-old building. Walker says the heavy lifting left to do basically to replace or repair two skylights.
The lease-up drive has resulted in a roster of small tenants like accountants, insurance agents and a mortgage broker. The building's quoted rate is $14 per sf, full service. SCM's Theron Bryant and the buyer's independent broker, Gary Smith of Dallas, brokered the sale.
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