ADDISON, TX-In an off-market deal, Red Sea Group has picked up $9.8 million or nearly $119 per sf for the 90%-leased Addison Plaza in North Dallas. The just-closed deal went full circle in less than three months.

The El Segundo, CA-based Red Sea Group developed the 82,500-sf, two-story, value-office project in 1999 on a 4.5-acre tract at the corner of Addison and Keller Springs roads. The new owner of 16200 Addison Rd. is Chicago-based Perth United LP, which has other commercial assets in nearby Richardson and Garland.

Mitch Kralis, executive vice president for Red Sea Group, says local broker Troy Wicker of Wicker & Associates brought the deal to him during the owner’s drive to renew some tenants and bring in some new ones. Kralis tells that the 12-tenant Addison Plaza was on the market awhile ago, but “it never approached the level we sold it for because we had a couple tenants in limbo.”

As locally based Capstar Commercial Real Estate Services did its work, Perth’s offer went on the table. “We cleaned it up so the purchaser of the real estate would feel like they got a good deal,” Kralis explains. “We got a fair price from an extremely qualified buyer. There’s some good upside for the buyer in taking advantage of going from a tenant-driven market to a level playing field.”

The lead tenant is the law firm of Gerard Singer Levick & Busch. The firm and RealManage and Digital Training & Design Inc. fill more than 40% of the building, according to Kralis.

William R. Lewellen Jr., a Perth principal, and Tom Smolik with TIG Real Estate Services of Dallas handled the buy side. TIG will be taking the leasing and management reins with the change of owners.

Red Sea Group still has two properties in the region: a data center in Richardson and its high-stakes investment in Walnut Park, a redevelopment plan for 42 acres of prime North Dallas land. “We’re still looking for opportunities in Texas,” Kralis says. “We’re still out there buying.” However, part of its acquisition focus is pointed at Central America, where Red Sea Group has just closed on one commercial property in Costa Rica and will pick up a second one next month.

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