Although Tulsa is not a typical target for the Newport Beach, CA-based buyer, Bill Rogalla, KBS' senior vice president and acquisitions director, acknowledges the time was right for the buy due, in part, to the energy-driven market and the asset's location on 3.2 acres at 5100 E. Skelly Dr. "We liked the asset's location and liked the diverse tenant roster," says Rogalla, who provided in-house representation during the transaction. "We felt it was a good opportunity to participate in what is a strong market right now."
Another appealing feature was the lease rollover, which averages about 10% per year for the next four years, Rogalla tells GlobeSt.com. He adds that, given the 27-tenant roster, there are no concerns about a major tenant leaving behind a huge chunk of space in the 93%-leased, 10-story building.
The lead tenant is Matrix Services Co., which has about 20% of the building. Other tenants include Tulsa Dental Specialties, Ram Energy Resources Inc., TMA Systems LLC and Enercon Services Inc.
KBS will make some upgrades to the 26-year-old Meridian Tower, focusing on mechanical systems and elevators. Rogalla says KBS has a projected five- to seven-year hold for the asset.
CB Richard Ellis' executive vice presidents Gary Carr and Russell Ingrum along with first vice president Eric Mackey in Dallas represented the seller. First vice president and principal Mary Martin and vice president Terry Payne, both in CBRE's Tulsa office, have the leasing assignment and Peggy Davis, also with the local team, handles property management.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
