Costco Wholesale Corp. purchased a North Dallas office tower out of bankruptcy with plans to breathe new life into the 1980s-era property.
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The members-only retailer snagged North Central Plaza I for $14.25M, or about $72 per SF, CoStar reported. The 198K SF Class-B building was just over 71% leased at the time of the sale.
Costco has filed permits with the state to begin a $13M renovation project at 12655 N. Central Expressway, steps away from one of its largest Dallas stores off Coit Road. It expects to wrap up by year's end.
According to permits, renovations include just over $7.7M in tenant improvements, $3.6M for maintenance, upgrades and repairs, and $1.5M for garage and security enhancements.
The building was owned by Hartman SPE, a subsidiary of Silver Star Properties REIT, which has been selling off its assets in a bid to pay down millions of dollars in debt.
Houston-based Silver Star filed for Chapter 11 bankruptcy in September amid a restructuring of the business and allegations of mismanagement by the company’s founder.
Another one of its office holdings, a 170K SF building in Irving, sold to a Dallas-based investor for $12.5M in December.
Costco is no stranger to the commercial redevelopment game. The retail behemoth filed plans last month to turn a 60-acre office site in the Denver area into a mixed-use destination with retail, multifamily and flex space. The company has also taken on office rehab projects in Oklahoma City and Springfield, Virginia, according to CoStar.
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