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ADDISON, TX-Addison II, a 182,154-square-foot flex building that originally housed operations for Excel Communications, was acquired by first-time buyer Luzzatto Real Estate Co. through its Real Estate Value Fund I LP. The facility, which hit the market for $9 million, fell out of escrow twice before the Southern California buyer closed on it.

“The other two fell out because of financing issues. This particular buyer was able to finance; they had the fund to provide equity and were also able to obtain a traditional debt,” explains seller representative Larry Leon, first vice president with CB Richard Ellis’ Dallas office. Leon partnered with CBRE Gary Carr to sell the building at 4550 Excel Pkwy. on behalf of SPI Holdings.

Leon tells GlobeSt.com that SPI Holdings, led in part by Dallas investor Richard Squires, acquired Addison II and sister building Addison I in 2005 out of bankruptcy. Area reports noted at the time that SPI Holdings paid $18 million for the sister buildings, which were developed in 1996 for Excel Communications. VarTech Telecom took ownership of the real estate when it acquired Excel Communications in 2001. VarTech declared bankruptcy several years later.

Though the 137,992-square-foot Addison I was 100% leased to Home Depot Inc. for a national call center in 2005, the multi-tenant Addison II is 60% leased. “We had a lot of interest in this because of the potential upside,” Leon explains.

To explore that upside, the new owner has retained CB Richard Ellis’ leasing team to fill the facility. Stream Realty Partners had the previous assignment.

CBRE vice president Burson Holman and associate Adam Hammack tell GlobeSt.com that the vacant space includes two dock-high, 100% air-conditioned flex space and a second-floor chunk of office space totaling 29,000 square feet.

“There is existing furniture and it’s already wired and ready to go for someone looking for a quick move-in,” Holman comments. “This would be ideal for a call-center type of use, for someone looking for a dense parking requirement, who wants to be close to the Addison Airport.”

Hammack explains the flex industrial is being targeted to potential tenants that need warehouse and/or production space; all of which is air-conditioned. “Dock-high space that’s fully air conditioned makes a good production facility or space for a local or regional distributor,” he adds.

The quoted ask for the office is $10 per square foot, triple net, while the industrial side is being offered for $5.75 per square foot, also triple net. CBRE vice president Steve Trese is also on the leasing team.

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