SoCal Investor Buys 182,000-SF CBD Asset

StarPoint Commercial principal Evan Farahnik tells GlobeSt.that he considers the property at 500 Throckmorton St. a core asset with some upside potential. The upside is in two forms, he continues, one of which involves about 10,000 square feet of vacant "challenge space" that can be renovated into income-producing space. The other upside, he notes, is improving operational efficiencies.

The Tower Complex consists of two buildings, the Tower and the Annex. The complex, in its entirety, has 287 condominium units and retail and office space. All but one of the condominiums has sold.

The Tower Complex was developed in 1974 for office use and until 1982 was Fort Worth's tallest building. It was renamed the Bank One Tower during the 1990s, and became severely damaged by an F2 tornado in 2000. The building sat vacant for several years after the storm and was targeted at least twice by a wrecking ball.

In 2003, Fort Worth developer Tony Landrum led a group that bought the building and invested about $72 million to convert it into condominiums and retail. Landrum was represented in the asset sale by Cushman & Wakefield of Texas Inc. executive director Tom Salanty, who operates out of the company's Dallas office.

"Tony did an outstanding job on the conversion, and it's a great asset," Farahnik says. There is a little left to be done, mostly on the Annex, which hadn't had much in the way of renovation. "We'll be upgrading the storefront on the retail shops on Taylor and 4th," Farahnik says.

The anticipated hold period is five years. Stream Realty Partners LP's Dallas office will continue managing the asset, while Ryan Tinch, who operates out of the Dallas office of United Commercial Realty has the retail listing assignment.

With the Tower Complex firmly in hand, StarPoint Commercial is turning its efforts to other potential acquisitions throughout Dallas and Fort Worth. Farahnik says the minimum investment requirement his company is looking for is $10 million, and the local acquisitions team is on the hunt for mostly retail and office product.

"We're not shying away from value-add opportunities in this market," Farahnik says. "If we feel the risks and returns are in line with today's economic situation, we'll be all over it." StarPoint Commercial doesn't have a particular goal for acquisition.

Farahnik explains that the Dallas-Fort Worth area is appealing from an investment standpoint because of the area fundamentals. Despite the economic downturn, both cities continue to grow and perform better than other primary markets in the country.