Canadian REIT Enters TX With Office Buy

LEWISVILLE, TX—City Office REIT has marked its entrance into Texas with the closing of its acquisition of Lake Vista Pointe here for a purchase price of $28.4 million. Dallas-based Frontier Equity, the seller, developed the 163,000-square-foot office property in 2007; it’s triple-net leased to Ally Financial Inc. through 2021. 

Vancouver, British Columbia-based City Office says it expects the Lake Vista Pointe acquisition to generate an initial full-year cash net operating income yield of approximately 7.8% based on the purchase price with contractual annual rent escalations. The acquisition at 2911 Lake Vista Dr. was financed with an $18.5-million mortgage that has been fixed at a 4.28% interest rate for 10 years.