Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DALLAS-Cannon Commercial Inc. has its new management plan up and running for the 1.4-million-sf Galleria Tower I, II and III. The Los Angeles-based owner has pulled management in-house and added Grubb & Ellis Co. to assist on the local level.

Cannon bought the landmark office trio beside the Galleria Dallas mall in late May from New York City-based Fortis Property Group, which was kept in place to manage the “shell structure,” specifically personnel oversight and related issues. Cannon’s MO is to manage its holdings while opting to contract part of the day-to-day functions to a local company, according to Shervin Mateen, Cannon’s CEO.

“Fortis had been doing that during the transition, but they are a New York company,” Mateen says. “We are familiar with Grubb & Ellis and are very happy with them. They know we’re not a typical owner and we’re hands on. We are involved in all decisions from A to Z.”

The Galleria towers’ fate has been on the watch list of the local brokerage circle since Cannon took the deed to the 468,750-sf, 25-story Galleria I at 13355 Noel Rd., 430,045-sf, 24-story Galleria II at 13455 Noel Rd. and 519,675-sf, 26-story Galleria III at 13155 Noel Rd. The leasing assignment reportedly is up for grabs too. Jones Lang LaSalle’s Dallas team has been at the helm before and after the prize changed hands.

“It’s not been determined yet,” Mateen tells GlobeSt.com. “For now, they [JLL] are leasing the space in our property, but I don’t know what the future will bring.” What he has confirmed is Grubb & Ellis’ role will be strictly to assist with management. “We keep it clear cut between management and leasing,” he stresses. The Galleria towers are 99% occupied, with minimal rollover in leases in the coming year.

George Gamel in Cannon’s Houston office oversees the 20-million-sf portfolio in the US. John McAllister with Grubb & Ellis Management Services is the point man for Cannon’s account, which includes a sizable portion, but not all, of its office portfolio.

From a management perspective, the priority will be lining up a renovation. Mateen says a multimillion-dollar makeover is planned for the trio’s lobbies and other common areas. He says he expects to have an architect picked within three months so work can begin in the first quarter.

“We plan to keep these properties for a long time. We want to retain the triple A standards,” Mateen says, “and preserve the elements of the trophy property that we bought.”

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


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 © 2020 ALM Media Properties, LLC. All Rights Reserved.