DFW Chalks Up Another Large Office Property Transaction
In another display of confidence in the future of DFW’s office market, Dallas-based office operator Preferred Real Estate Investments and suburban Philadelphia-headquartered CenterSquare Investment Management have joined forces to purchase a sizable office campus in Lewisville.
The companies announced Monday they had acquired the 240K SF Lake Vista 7 property once home to JPMorgan Chase in a joint venture, with plans to renovate and add amenities suitable for a single or multiple users.
No sales price was disclosed, although the property was appraised at $32.25M in 2021, county records show. The seller wasn't identified, but news reports indicate Dallas-based TriGate Capital and other investors purchased the 486K SF property in 2017.
“Dallas continues to be a national leader in job and population growth as well as percentage of tenants returning to the office,” CenterSquare Managing Director of Private Real Estate Jeffrey Reder said in a release. “The investment in Lake Vista 7 aligns well with our conviction in differentiated, excess corporate real estate that resides in affordable, business-friendly sunbelt markets such as Dallas. Our value-added business plan is focused squarely on the swift modernization of this well-located space.”
The 14-year-old business campus, located near the intersection of Interstate 35E and State Highway 121, is set for a series of upgrades, including conference and meeting facilities, fitness, wellness and dining options, and indoor-outdoor collaboration and entertainment spaces.
“As we consider the post-Covid environment, we are seeking office investment opportunities that have the characteristics that we expect to be most advantageous to tenants in the face of demand uncertainty,” Preferred partner Murl Richardson said. “Lake Vista 7 will be extremely well-positioned from both a configuration and amenity standpoint to be a highly desirable option for tenants back in the market for growth, consolidation or relocation of their office needs.”
CenterSquare had more than $14B in assets under management as of this month, while Preferred has completed 15 office property acquisitions in Dallas, Houston, Austin and San Antonio totaling nearly 1.9M SF since 2007.
The acquisition comes as Dallas continues to significantly outpace the nation in average office occupancy, according to building entry security company Kastle Systems, and amid a flurry of large office deals. Just in the past week, Dominus Commercial and Convergent Capital Partners bought the 22-story 600 East Las Colinas building in Irving and Dallas investor Ray Washburne acquired the 300K SF 10000 NCX high-rise office tower in north Dallas.