X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

IRVING, TX-A first-time buyer in North Texas has tucked away the win for a 125,000-sf class A-minus office building at the gateway to Dallas/Fort Worth International Airport. The deed changed hands yesterday for $14.1 million or $115 per sf.

“The key thing about this deal is the price per sf. It would cost well over $250 per sf to replace today,” Ted Gibbons, president of Investment Realty Advisors Inc. in Bellevue, WA, tells GlobeSt.com about the acquisition of 8505 Freeport Pkwy. The six-story building is 95% leased, with 80% of the office space as the North America headquarters for Hanson Aggregates Inc., with nine years left on its Las Colinas submarket lease.

Gibbons says the buyer is a private investor from South Florida. The seller is a limited partnership with Naples, FL and Minneapolis ties, which had the NAI Welsh team of Bob Pounds, Tim Prinsen and Betsy Budge in the Twin Cities region marketing the 8.3-acre property.

“It was a fairly competitive situation,” Gibbons says. “I’m really amazed that we could buy this asset at that price.” The property was marketed for $17 million.

Underwriting the purchase is an 18% increase in contracted rent in the coming four years, according to Gibbons. The 5% vacancy is being marketed for $17.50 per sf plus electric by Jones Lang LaSalle, which held onto the leasing and management pacts with the ownership change.

Gibbons says there are no upgrades planned for the 25-year-old structure. “The interior space is absolutely gorgeous,” he adds.

The broker says the buyer secured a $6-million loan from New York City-based Lehman Bros. to make the close. And, the plan is to hold for the long term.

Gibbons credits the buyer’s interest to the metroplex’s fundamentals, central US positioning and the price per sf of the deal. “Investors like Dallas because they get a higher cap rate on the same intrinsics,” he adds.

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
  • 1 free article* every 30 days across the ALM subscription network
  • 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 © 2021 ALM Media Properties, LLC. All Rights Reserved.