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DALLAS-A New York City investor, with a penchant for clustering assets and leasing to federal and state agencies, has bought a third building along Stemmons Freeway in an off-market transaction with ING Clarion. The sale weeds a class A-minus office building from an industrial portfolio bought last year.

Elman Investors Inc. acquired the 51,000-sf building at 8101 N. Stemmons Freeway from ING Clarion’s package of Lion Industrial Trust properties. In a closing day coup, Elman secured an extension of a 15-year federal lease. “It was enough to give the buyer comfort,” Tom Clarke with Grubb & Ellis Co.’s Dallas office tells GlobeSt.com about a lease that reeled in the option period.

Clarke, bound by a confidentiality agreement, would only say that the two-story building traded at a market rate. Based on submarket comparables and Elman’s buying habits, the North Stemmons Freeway building, assessed at slightly more than $2 million, most likely brought about $4 million. The building, with excess parking, houses the operations center for the Immigration Naturalization Services and Homeland Securities.

In April 2003, Elman paid $5.9 million for a 100,000-sf office building at 8001 N. Stemmons Freeway, fully occupied by First Tennessee on a net lease basis through May 31, 2005. When the deal closed, Lee Elman, president and CEO of the investment firm, confided the plan was to lease it down the road to its specialty tenant, the General Services Administration, the kingpin dealmaker for all federal leases. Elman also owns the 189,593-sf structure at 7701 N. Stemmons Freeway, another INS-occupied building. In the past nine years, Elman Investors built a reputation for buying US buildings and cornering state and federal government tenants to fill them for the long term.

Clarke says the latest deal went full circle in 45 days “once they made a decision” to sell. He says he approached the New York City-headquartered ING Clarion about selling the property a year ago, right after it bought the portfolio. “This is just ING spinning out a non-industrial asset from the portfolio,” he says. As before, Elman made an all-cash close and will secure a loan at a later date, according to Clarke, who teamed with Grubb & Ellis’ Bo Estes to negotiate the acquisition.

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