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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.”

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