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IRVING, TX-After nine years of being in the driver’s seat, Rreef Funds will bring the 199,626-sf Embassy to market in the coming weeks. Key to the upcoming sales pitch is its location in the Las Colinas Office Center.

The newly formed Jones Lang LaSalle team of John Alvarado, Jack Crews and Evan Stone, all managing directors, has won the nod to sell the 10-story building at 1431 Greenway Dr., a 75%-leased, class A-minus asset in a submarket with rising rental rates and hardy absorption. “The office center is really well positioned for rapid appreciation,” Alvarado says. “That’s part of the reason why Rreef is bringing it out.”

Alvarado says the game plan is to start marketing the Embassy in the second week of September, with the call for offers at month’s end. The San Francisco-based Rreef’s decision to sell comes at a time when comparable space is fetching $120 per sf to $130 per sf. Just recently, the 235,189-sf Canal Plaza traded for $23.5 million, according to one industry database.

The Embassy’s upcoming free-and-clear sale also is hitting just as quoted rates for top-tier office space have breached the $30 per sf mark, opening the door for lower-grade class A’s to benefit in the chase for tenants. The Embassy’s rate for direct space isn’t available, but one sublease opening is priced at $18 per sf. Rreef Asset Management Inc. is the building’s overseer.

“Rental rate appreciation has really taken off,” Alvarado tells GlobeSt.com, echoing observations by others in recent weeks about the Las Colinas market. “And, we are seeing substantial leasing activity.”

The upside is obvious: a 25% vacancy that primarily arose when an architectural firm closed its doors three months ago. “There is not a lot of roll in the existing leases,” Alvarado says. “What needs to happen is some new leasing to backfill the vacancy in the building.”

The Embassy, institutionally owned and maintained since it opened in 1983, is expected to draw at least $20 million in a predicted highly competitive race to the finish. “I think this deal will have some good crossover appeal,” Alvarado explains. “It will appeal to institutions, and it’s still within reach of private investors.”

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