DALLAS-A private investor from Los Angeles, gaming out a buying plan for Dallas/Fort Worth, has met the $2.17-million ask to claim his first deed in the region. The value-add buyer has acquired the 45,507-sf Northlake Doctors Building, an 83%-leased asset now ticketed for a major overhaul.

Northlake Meridian LLC has assumed a $1.35-million loan at a 5.75% fixed-rate interest, opening the play with an 8.27% cap rate at 10405 E. Northwest Hwy., according to the marketing flyer. The 10-year financing, maturing in June 2015, represents a 60% loan-to-value ratio. Charles Scott with Minneapolis-based NorthMarq Capital Inc. in Dallas steered the assumption process.

The deal’s lone broker says the new owner was up against three other offers that rolled in during the two-week marketing. “This buyer saw the potential. The average rents were low, the price per sf was low,” Joe Garret with Sperry Van Ness in Dallas tells GlobeSt.com. “They saw they could make a renovation and make a potential return.” Dallas-based Square Foot Inc. is the seller of the 3.65-acre property.

Garret says the buyer plans to push the class C space to class B quality with upgrades to the exterior, interiors and mechanical systems. Work is slated to get under way in the coming weeks. The buyer’s Wilshire Beverly Management Co. will lease and manage the asset, now leased to 14 medical and office tenants. The largest tenant is Life Net Community Behavioral Healthcare Inc. with 18,142 sf.

Garrett says the buyer has built in a five-year hold for Northlake Doctors Building as he builds a portfolio of office and retail properties. If all goes as planned, two more deeds could be in hand by year’s end, according to Garrett.

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