(Read more on the debt and equity markets.)

DALLAS-In a 45-day spin from the best and final to the close, Miami-based Parmenter Realty Partners has grabbed control of the 196,040-sf Two Forest Plaza. The deal has crossed the finish line with a $19.73-million loan for acquisition and repositioning costs.

“We have quite a bit of capital committed to it,” says Steve Bronner, managing principal of Parmenter Realty. The loan, provided by Paris-based Societe General, includes a reserve pool to upgrade the lobby and elevators plus underwrite tenant improvements and leasing commissions to reposition the 64%-leased, class B building at 12201 Merit Dr. and bump it to class A-minus status, he tells GlobeSt.com.

Bronner says the East LBJ Freeway submarket’s rebound since the High Five opened was the motivating factor for the chase. Last year, Parmenter bought the 835,000-sf three-tower Park Central along Merit Drive. Its Jones Lang LaSalle leasing team has the complex at 92% occupancy.

“During the High Five construction, this submarket got hammered,” Bronner says. “We’re now seeing good rent growth and good absorption.” Two Forest Plaza’s seller, CMD Realty Investors Inc. of Chicago, made the pass with in-place, full-service leases at rates in the mid-teens. Bronner says the new team, Transwestern, will be quoting $17 per sf to $18 per sf plus electric, with the switch from full service providing immediate upside.

In addition, Bronner believes there is synergy to be gained between its Park Central complex and 11-story Two Forest Plaza after the renovation is complete. Work gets under way in 60 days. “We’re going to reposition it, remarket it to the market and lease it back to stabilization,” he emphasizes.

Bronner says four prospective buyers made the best and final for the Cushman & Wakefield of Texas Inc. sales campaign. “One of the things that made a difference was our certainty of execution,” he assesses. Parmenter is operating with a $250-million fund, of which 40% has been invested into acquisitions in Dallas, St. Louis and Atlanta with deals in the works in the Carolinas, San Antonio, Houston and Florida. On average, the buyer does a 65% to 70% loan-to-value leverage.

Charles J. Foschini, managing director of CBRE/Melody’s South Florida office, Christian R. Lee, executive vice president of CB Richard Ellis’ institutional group, and Christopher Apone, vice president in the CBRE/Melody office, arranged the financing. Foschini confirms the borrower got a three-year loan with two one-year extension options at a floating-rate interest due to “an extremely competitive” financing scenario.

“The reaction was very strong from lenders. Texas is always a very tricky market,” Foschini says. “In this case based on the strength of the asset and the sponsorship, we had tremendous interest. Societe General proved to be our best lender both in terms and ability to react to a very short due diligence and timeframe.”

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?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


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 © 2024 ALM Global, LLC. All Rights Reserved.