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DALLAS-Within days of the prepayment lock-out coming to an end, IPC US REIT and PNL Cos. have turned over the deed to the 843,728-sf 2100 Ross Ave. for $73 million to long-time partners, Moinian Group and SMA Equities. The contract went down Dec. 29, 2006, but the plan all along was to wait out the lock-out.

“We put it under contract and bided our time since then,” Dan Levitan, managing director of Dallas-based PNL Cos., tells GlobeSt.com. “Even with the defeasance penalty, we hit the Treasuries at the appropriate time.” He says the timing was so on target that securities were bought April 16, one day before the interest rate dropped and four days after the conduit loan’s lock-out provision ended.

IPC and PNL bought the high rise in late 2004 for $56.3 million, re-branding the 33-story San Jacinto Tower to 2100 Ross and undertaking a multimillion-dollar makeover. The intent was a long-term hold.

The odds for an early sale were on the owners’ side–with capital still free-flowing, interest in Dallas still cresting and value-add left in the building’s 76% occupancy at a time when rental rates are climbing. With the Toronto-based REIT looking for a buyer, it was an opportune time to sell its lone Dallas deed and close out the PNL partnership.

“It was time to take advantage of investors’ interest in the CBD and the timing was good for us,” Levitan says. “We feel confident due to the location and the improvements that we’ve made to the property that the new owner will benefit.”

Ernst & Young LLP is the lead tenant with 244,000 sf leased through June 2009. CB Richard Ellis, which will continue to lease and manage the high rise, occupies 100,000 sf. The wild card is E&Y, which has yet to declare its intention and is being heavily courted by owners of new buildings in the Arts District and Uptown.

Levitan says 2100 Ross was “never mass marketed.” He and John Alvarado, managing director of investment sales for Jones Lang LaSalle, worked out the deal directly with the New York City-based JV, which also owns Renaissance Tower at 1201 Elm St. SMA Equities, led by Sina Mahfar, separately owns Republic Center at 325 N. St. Paul St. and the Overlook in Las Colinas at 251 O’Connor Ridge in Irving.

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