X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

IRVING, TX-With 12 other investors jousting for the win, SMA Equities has come out on top with the deed to the Overlook at Las Colinas. Sources say the just-closed deal for the class A office building, overlooking the Four Seasons Resort and its TPC golf course, was sealed at roughly $150 per sf.

The uptick in the Las Colinas office market proved to be an extra boon, with the 95,510-sf building’s occupancy climbing 7% and its class A rate gaining up to $1 per sf as SMA headed into the final negotiating stretch with Hartford, CT-based Cornerstone Real Estate Advisers, an affiliate of Massachusetts Mutual Life Insurance Co. When the dust settled, SMA began its reign of the urban center prize at 251 O’Connor Ridge Blvd. with 92% occupancy and new rates of $19 per sf to $21 per sf.

“The play in this building is more a long-term hold. The long-term prospects for it are very good,” says John Alvarado, managing director of investment sales for Jones Lang LaSalle. “There are leases in place that are already well below market. The owner has to hold onto those leases for a couple years and then they’ll flip to higher rents.”

Transwestern retained the leasing assignment, bringing the Bruning law firms, now at 3102 Maple Ave. in Dallas, to the three-story building’s top floor as the acquisition pushed toward closing. The building primarily houses smaller offices in a niche mix of regional and local firms heavily weighted by the financial services’ industry. The lead tenant is Darling International Inc., which has its headquarters in 26,772 sf.

Alvarado says the new owner, like the tenants, was drawn to the location. “It’s a very unique location, overlooking the golf course and Four Seasons,” he says. “It’s one of the few irreplaceable locations in Irving because of that.”

Alvarado tells GlobeSt.com that SMA Equities’ principal Sina Mahfar brought other partners to the deal as he so often does, syndicating the equity and taking down new debt to make the close. “He did that in this case as well. And, did it very quickly,” he says, adding the equity partners are all New York-area investors.

JLL’s Jack Crews, also a managing director, and Alvarado began the sales campaign under the Trammell Crow Co. name and edged it right up to the finish line as a CB Richard Ellis team. It closed it two days ago, rolling the fourth deed in the Dallas area into the New York City-based SMA’s portfolio.

Crews says the Overlook’s marketing lasted 30 days, with the interest being stirred by the building’s quality and location as well as the residential construction that’s underway or on the planning docket for a long-time favored pocket of regional offices and headquarters for corporate America. Cornerstone owned the 22-year-old building, situated on 4.67 acres, nearly a decade.

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.