GE Division Purchases 129,899-SF Class A

"We are looking all over the country," Rob Gilbert, director of asset management for the Evanston, IL-based Arthur Hill & Co. "And, we're aggressively looking in Dallas, Houston and Austin."

Gilbert says the Bellevue, WA-based GE division was one of several top offers of the eight to 10 that rolled in for the class A office building at 2401 E. Randol Mill Rd. He says GE's "credibility" and price were the dealmakers.

Gilbert tells GlobeSt.com that GE, like other would-be buyers, was chasing the upside in below-market rents of a 92.5%-leased office building, with AT&T as the lead tenant. "The going-in yield is low, but when AT&T rolls to market is when they'll be able to realize a better yield," he explains. The communications kingpin, renewing its lease in 2004, has more than five years left on the term for 64% or roughly 86,000 sf of the six-story building, he adds. Other tenants are Progressive Insurance Co. and the National Institute for the Severely Handicapped.

Arthur Hill & Co. acquired the 5.9-acre asset in August 2004. Emphasizing there's gain to be made as leases roll, Gilbert predicts GE will hold the deed for the long term due to its value-add promise and location near the intersection of Interstate 30 and 360, which is close to the city's entertainment district and GloryPark, a mixed-use development planned to surround the Dallas Cowboys' stadium.

The CB Richard Ellis team of first vice president Larry Leon, vice president Bryan Graham and senior associate Darrin Roberts had the 22-year-old building on the market three month for $13.8 million. Gilbert says the buyer took it for "just shy of full price." Scott Lewis, vice president for CBRE/Melody in Dallas, arranged debt and equity financing.