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ARLINGTON, TX-A 25,986-sf office building, with a 41% occupancy, has sold for $1.2 million to a local investor, who’s planning to pump some hefty dollars into the turnaround plan. The seller is a Dallas-based investment group that’s now weighing whether to bring a second Arlington office building to market.

The new owner of 711 E. Lamar Blvd. sat down at the closing table with a medical tenant standing ready to occupy about 6,000 sf, Gary Walker, president of SCM Real Estate Services in Arlington, tells GlobeSt.com. The new owner, who will manage the property, has kept SCM Real Estate on board to lease the balance of the building.

Walker says the buyer of record, Meadow Manor Ltd., intends to do a full makeover including adding an elevator to the two-story building. It’s anticipated the top-to-bottom renovation on the class C building will begin in 30 days.

“The building needed capital,” Walker says, noting that the acquisition closed with cash and a bank loan sporting enough funding for the makeover. He says there were “two or three” offers before the Arlington investor came forward, but none got as close to the $1.4-million list price as the group now holding the deed.

Walker predicts occupancy will be in the mid-80% range within nine months of the renovation’s completion. A 10,000-sf tenant exited about a year ago, helping to drive a $200,000 reduction in the Tarrant County appraisal. The remainder of the rent roll is stable, with staggered expirations beginning in four years. The building’s current rate is $13 per sf full service, but that is likely to change once the rehab’s done.

Walker says Hudson Advisors of Dallas, an international investment fund, brought the 1.5-acre property to market because it is trading in US suburban product for overseas investments. With one Arlington office building sold, Hudson Advisors is now considering whether to bring a second Arlington office building to market, the 54,000-sf 1601 E. Lamar Blvd.

Walker and SCM’s Theron Bryant represented the seller of record, Lone Star Investment Fund, which has Clint Holland as its local asset manager. The buyer’s team consisted of John Brennan and Ann Nguyen, both with Brennan Co. in Dallas.

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