IRA Realty Buys 92,000-SF MOB

DALLAS-Private investor IRA Realty Capital acquired a 92,000-square-foot medical office building in North Dallas, paying seller Texas Institute for Eyes LLC $25.5 million for ownership. The California buyer's goal is to stabilize occupancy at the three-year-old building, which was 82% leased at closing.

According to Stan Johnson Co.'s Toby Scrivner who represented the seller, the asset at 10740 N. Central Expwy. attracted plenty of interest, though the CRE process did have its share of challenges. "The challenge we had was that health care assets have a 20% vacancy in the Dallas-Fort Worth market right now," Scrivner tells GlobeSt.com. "A lot of investors were concerned about the vacancy of this particular asset in a market with high vacancy."

But there were many positives associated with the medical office building. For one thing, the asset has several eye-focused practices as tenants, offering a good niche play for the new owner. That, plus the asset's location, impressed IRA Realty Capital says Scrivner, who partnered with Stan Johnson's Jeff Matulis and Karen Vinsko on behalf of the seller.

And IRA Capital impressed the seller even more through its all-cash offer. "What the buyer brought was vision," Scrivner adds. "They were willing to see the market potential of this asset and its uniqueness in the marketplace."

Cadence McShane Construction, the medical office building's developer, received the Tilt-Up Achievement Award from the Tilt-Up Concrete Association for the four-story asset.