An 846K SF office property in Dallas is being handed back to the bank after its California-based owner failed to pay its loan.
The Towers at Park Central, a three-building, Class-B complex located near the southwest corner of Interstate 635 and U.S. 75, has been owned by investment manager PIMCO since 2014, according to a report by CoStar.
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Former anchor tenant Interstate Batteries moved into a new office building off the Dallas North Tollway in late 2021, at which point PIMCO partnered with JLL to market the property for sale, per CoStar. When that effort failed, PIMCO entered into a deed-in-lieu-of-foreclosure agreement with lender TPG Real Estate Finance.
TPG declined to comment. PIMCO did not respond to Bisnow's request.
Class-B office complexes have become increasingly difficult to lease amid a widespread flight to quality that emerged during the pandemic.
Now, with company leaders pausing space decisions amid rising interest rates and inflation, those problems have intensified.
TPG estimates that The Towers at Park Central are worth $154M, far outpacing the appraised value of $130.8M, according to CoStar. Still, the property has failed to compete with nearby complexes offering more amenities and better walkability.
It is unclear what TPG’s plan is for the property; however, it is likely the bank will wait to make a move until economic turmoil subsides. The bank recently closed on a $7B opportunistic real estate equity fund, which means it has more money to deploy than at any other point in the company’s history, according to CoStar.
"Now is not the best time to sell if you can help it, but I don't know what their basis is in the property," Colliers International Dallas Executive Vice President Creighton Stark told CoStar. "It may be best to give it to someone who knows what they are doing and what needs to be put into the property to make it competitive in the market."
CORRECTION, NOV. 4, 11:33 A.M. CT: This story has been updated to include the correct title for Creighton Stark.
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