X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

IRVING, TX-With only Dallas-area investors in the race, Signature Asset Management Inc. has pocketed the deed to a 126,581-sf office building in Las Colinas. Comparable class B office product in the submarket has been trading for $50 per sf to $65 per sf.

Chicago-based CMD Realty Investors banked the going rate for O’Connor Ridge, says Jack Crews, senior vice president for Trammell Crow Co.’s investment sales group in Dallas. He says Signature Asset Management, led by Ryan Phillips, was the highest of a dozen offers on the table for the 4545 Fuller Dr. property, the second CMD asset in Las Colinas to sell this year.

The 26-year-old O’Connor Ridge came to market without an asking price, just like CMD’s 9101 LBJ Freeway. Signature’s value-add play is a 70%-leased building on a seven-acre campus, strategically positioned outside the line of the Dallas County Utility and Reclamation District so that taxes are lower, as is the rent, giving the new owner significant leverage in the submarket.

“It’s a good economic alternative to the high rises that are around it,” Crews says. “It’s a good building for Ryan. He’ll do well with it.” As for the lease roll, there’s no exposure for a year in the 14-tenant roster, he says.

Phillips tells GlobeSt.com that he hired the Transwestern Commercial Services’ team of Matt Hurlbut, senior vice president, and Melinda Alford, senior associate, to lease the building with an opening rate of $13.50 per sf. There’s also a 7% leasing commission in play for three months as an added incentive to fill the empty space in a building neighboring headquarters locations for Verizon Southwest, Kimberly-Clark Corp. and Independent Bankers Bank, also an O’Connor Ridge lead tenant. Phillips nixed any large-scale renovation, but did say some office space will be readied for immediate move-ins and some left as-is for tenant finish-out. Transwestern also cornered the management assignment. Previously, CMD Realty managed it and Cousins Properties Inc.’s Texas team leased it.

“We like Las Colinas,” Phillips says, citing the deal as strictly a one-off and an intended long-term hold. “It’s been beaten down as a submarket due to the tech collapse. But as far as the fundamentals and infrastructure, it’s still one of the best submarkets in Dallas.”

O’Connor Ridge is Signature’s second office building buy this year. Phillips says there’s one more in the hopper. “And then, we’re going to catch our breath,” says the owner of the 15-year-old firm.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.