CB Richard Ellis Investors bought the 23-year-old building on 3.6 acres at 5001 Spring Valley Rd. in 2006 for one of its pension fund partners. During the hold period, the company made a $3 million capital investment for various upgrades and amenities packages. A sales price was not available, but class A suburban office buildings are trading from $150 to $165 per square foot. The Dallas County Appraisal District valued the building at $72 million.
Providence Towers is 87% leased to 47 tenants including Henry S. Miller Commercial, Time Warner Cable, Transwestern Property Co. and Morgan Stanley. "The addition of Providence Towers to our portfolio further enhances our long term commitment to the Tollway submarket," explained Bill Rogalla, KBS senior vice president in a statement about the transaction. "Providence is a landmark quality asset which will perform well as the economy recovers in the coming years."
Representatives from KBS declined an interview request. Gary Carr and Russell Ingrum of CB Richard Ellis' Dallas office represented the seller in the transaction. They were not available for comment.
According to the Providence Towers marketing flyer, approximately 282,032 square feet of the space, or 55% of the property, is leased at least until 2012. The flyer also stated that leases scheduled to expire in 2010 and 2011 have in-place rents averaging 15% to 20% below current market rate.
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