Behind the Scenes: Preston Plaza Sale
All the stars aligned for both the buyer, Caddo Holdings, and the seller, Granite Properties, to get what they wanted out of the sale of the 261k SF Preston Plaza. (You can't always get what you want, except when you're Justin Bieber.) While the price wasn’t disclosed, the brokers handling the deal tell us the transaction was smooth.
Colliers International’s capital markets group’s Creighton Stark, Ben Lurie, and Jack Minter repped both buyer and seller. Ben tells us Granite Properties capitalized on the opportunity to sell a building it had owned for nearly 25 years. (Most parents want to get rid of their kids when they're 25.) For Caddo, it was an opportunity to acquire a Class-A building from an institutional owner in a submarket that is projected to continue to improve over the next several years. Caddo plans to spend $4M in capital improvements to bring up the property’s 76% occupancy level, he says.
Creighton says the capital investment will help repositioning efforts. That pocket of Preston (north of LBJ) has a history of dominance for that specific area in Far North Dallas because of the surrounding demographics of executive leadership. Caddo will likely try to capitalize off the surrounding medical and improve the retail on the ground floor. The 10-floor tower is located at 17950 Preston Rd. Jack tells us this is Caddo’s first acquisition in North Dallas. Cassidy Turley’s Beth Lambert and Diego Arroyave arranged the JV equity deal with AFO Capital. American Bank of Texas provided financing for the purchase. Younger Partners’ Kathy Permenter, Sean Dalton, Heather Shover, and Kolby Dickerson will lease the building.