281,000-SF Office Portfolio Trades Ownership

DALLAS-Caddo Holdings LLC has bought a portfolio of three office buildings in the Uptown submarket. The Dallas buyer obtained the three-building portfolio, totaling 281,303 square feet, from locally based LH Holdings, a partnership affiliated with Hunt Petroleum.

According to Creighton Stark, Colliers International senior vice president of office investment sales, LH Holdings was interested in disposing of the 1980s buildings, but didn’t want to do a wide listing. “They wanted to do a pocket listing and have us show it to a couple of groups,” says Stark, who negotiated the transaction on both sides. “I did, we got a couple of offers, the one from Caddo stuck, and we rode it to the finish.”

The sales price was kept under wraps due to confidentiality agreements. From a comp point of view, 3333 Lee Parkway in the same submarket sold in August for $135 per square foot, and it’s believed the LH Holdings portfolio sold north of that amount.  The portfolio consists of the 76,380-square-foot 3400 Carlisle St., 2501 Cedar Springs Rd., which measures 110,923 square feet, and a 94,000-square-foot building at 2811 McKinney Ave.

Stark tells GlobeSt.com that the locally based Caddo Holdings will put all three assets through a “complete overhaul from the exterior to the interior” in attempts to reintroduce the buildings to the brokerage community. Occupancy of the portfolio was 90% and Stark says there is no major near-term roll anticipated.

The deal itself was unique, not so much because it involved a portfolio of three buildings, but because those three buildings are in one of the more popular submarkets in the Dallas-Fort Worth area.  Uptown has a limited amount of office supply, which has historically led to lower vacancies and higher rents.  “These are the types of deals that owners tend to hold onto for a long time,” Stark comments. “The limited supply always has led to a huge demand in this submarket.”