DALLAS-In an off-market purchase with a near $7.8-million tab, Behringer Harvard Funds and Realty America Corp. have picked up an 89,292-sf, class A office building in Uptown.

The first-time teaming of the two Dallas companies snagged the deed to 4245 N. Central, a six-story building with built-in upside from a 75% occupancy. M. Jason Mattox with Harvard Behringer says Realty America’s Kipp Sowden brought the deal to the table. “We were aware it was on the street,” Mattox tells GlobeSt.com, “and it made sense. We arranged for a nice partnership with them.”

The duo has tapped Dallas-based Trammell Crow Co. to lease and manage 4245 N. Central, where class A space runs from $17 per sf to $22 per sf. Built in 1986 with one level of underground parking, the building sits on slightly less than three-quarters of an acre with freeway exposure. Tenants include BGO Architects, public relations firm Michael Burns & Associates and Dr. Monty Buck–and no roll on the roster at large until midyear 2005.

Mattox says the takeover begins with leases in the pipeline. “The market is turning positively and we hope to capitalize on that,” he says. The expectation is the office building’s occupancy will climb above 90% and reach stabilization in the near term.

The quick-turning transaction was mortared in location and occupancy upside. The property is situated to the south of the Knox Street retail district and neighbors a thriving upscale residential district co-mingling Uptown and Highland Park addresses. “This asset occupies a strategic location and should provide near-term value enhancement through improved marketing and a property operation plan designed to deliver the highest level building services to both new and existing tenants,” Robert Behringer, the founder and CEO of Behringer Harvard Funds, says in a press release.

The 4245 N. Central property was bought with funds from the Harvard Behringer Short-Term Opportunity Fund I LP. “We will seize some short-term capitalization opportunity and then unload the asset timed with the fund’s exit strategy,” Mattox says of the pool’s three- to five-year holding period.

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