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LEWISVILLE, TX-With a $200-million expansion under way for its Texas operation, Fidelity Investments has signed a 10-year lease for a 160,661-sf gateway building in Convergence, a 1.1-million-sf business park that’s 40% leased. In recent months, Fidelity announced plans to add 600,000 sf to its Westlake campus, about 15 miles west.

Toronto-based Brookfield Real Estate Investment Fund bought the 185-acre Convergence in November 2006, digging into a large-scale renovation of the 12-building, class B complex at 2501 State Highway 121. “Fidelity is a really great tenant. It really casts an image for the park.” David Arthur, Brookfield’s president and managing partner, tells GlobeSt.com. “At this early stage, we’re feeling very good about the park. It’s an early win.”

Fidelity, eyeing a midsummer move-in, joins a tenant roster with GMAC Mortgage Corp., Overhead Door Corp. and Archon Group. Fidelity’s building, the only two-story in the lot, most likely is just the opening play since the stair-stepped lease does include expansion rights,” Arthur says, adding finish-out will be a shared proposition.

Arthur says there are “a couple other strong tenant prospects” in Convergence’s pipeline. Like others at the park, the appeal is the heavy power capacity, security, parking ratio and proximity to Dallas/Fort Worth International Airport.

“We have a number of quality tenants, but our attitude was there were things we could do to enhance the park,” Arthur adds. On the “to-do” list is adding new turning lanes and a second entrance off Texas 121, tag-teaming the project with the City of Lewisville. The ingress-egress improvements will be completed in the fourth quarter or Q1 2008.

As is so often the case, dealmakers aren’t available to discuss the inner workings of the Fidelity deal, mainly due to tenant’s high profile. Fidelity’s team consisted of Phil Puckett, executive vice president for CB Richard Ellis in Dallas, and Rick Fahey and Sue Donovan of FHO Partners in Boston. Convergence’s leasing team is Johnny Johnson, principal of Capstar Commercial Real Estate Services in Dallas, and Trey Smith, senior vice president.

Fidelity took the largest building in Convergence’s dozen, which go from 75,993 sf to 160,661 sf. The space is being marketed for $16.50 per sf to $17.50 per sf.

What it took to lock in Fidelity is being kept under wraps. It wasn’t overly aggressive, but “it was a very competitive and compelling package,” Arthur says.

In recent months, Fidelity was given an $8.5-million grant from the Texas Enterprise Fund to add a 600,000-sf office building to its Westlake campus. The Boston-based Fidelity intends to pump more than $200 million into its Texas expansion, adding 1,535 jobs to the 3,400 that it’s created in the past two decades in North Texas, Austin, Houston and San Antonio.

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