DALLAS-In one of the quietest trades in the metroplex, CMD Realty Investors Inc. has handed off the deed to the 318,695-sf Dominion Plaza to a first-time buyer in the Southwest US. The class A asset most likely fetched about $30 million.

The off-market sale to Dalfen America Corp. of Montreal closed with a $21-million loan from Prudential Mortgage Capital Co. of Newark. The three-year, interest-only financing cleared at a floating rate of 300 basis points over the 30-day Libor index, kicking off at 4.25%. The two-building asset, with parking garage, sits on 6.8 acres along Preston Road, a prominent positioning amid office and high-end residential properties in the Far North Dallas submarket.

Randy Fleisher, a managing director in Dallas for Houston-based LJ Melody & Co., says Prudential was one of few lenders in line for the deal. “It was a challenging placement because of the soft office market in Dallas,” he tells GlobeSt.com about a sale that went full circle in 90 days.

Sources say the Canadian buyer’s value-add upside lies in the 70.3% occupancy for a high-profile property in good condition, but with definite leasing exposure on the horizon. Key tenants are Washington Mutual, National Envelope Corp. and Fujitsu Microelectronics.

The Chicago-based CMD Realty could not be reached for comment by publication time. It acquired the asset in September 1994. The 20-year-old complex, with a 188,320-sf parking garage is assessed at $21.1 million. The 14-story Dominion Plaza West at 17304 Preston Rd. is a class A building with 262,054 sf. Dominion Plaza East, a class B building, has 56,641 sf in three stories.

Until now, Dalfen’s US holdings consisted of one office building in Atlanta and five in Florida. According to its website, Dalfen is “in full expansion mode with an annual acquisition budget of one million sf.” Besides Dallas, target markets are Houston, Chicago and Arizona as well as major metros in the central and eastern US. Criteria is upside with 20% or more vacancy, class A or class B and developments with 75,000 sf to 300,000 sf. Dalfen’s two-million-sf portfolio, spanning several Canadian provinces, is a mix of office, retail and industrial properties.

The Dominion Plaza financing was placed by Fleisher and Don Jennewein, a senior director in LJ Melody’s Tampa office. Grubb & Ellis Co. senior vice presidents Scot C. Farber in Dallas and Darrell L. Betts in Houston negotiated for Dalfen.

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