Pennsylvania-based McKnight Realty Partners has secured $58.6M in refinancing for Park Central 3 and 4 in the Park Central submarket of Dallas.
Millions of the total funding will go toward lobby renovations, exterior upgrades and revamping amenities, McKnight director of development and acquisitions Izzy Rudolph said.
A refreshed main lobby will give Park Central 3 a sense of entrance with modern finishes. The interior conference center will also get an upgrade. The exterior will get a cleaning, a fresh coat of paint and a new lighting system. McKnight will also better connect the exterior to the White Rock Lake Trail.
A high-end food and beverage service will be coming to Park Central 3, but Rudolph was tight-lipped on the specifics. He promised something cool and hip. “Think of a co-working-style, chef-driven concept.”
Park Central 3 is 89% occupied, and Park Central 4 is 83% occupied, Younger Partners co-founder Moody Younger said. Younger Partners leases the buildings.
Younger thinks the renovation will begin in 2017.
“These are some of the few buildings that could move from Class-B to Class-A with improvements,” Younger said. “[The buildings] have a solid structure, amenities, 26k SF floor plates and high parking ratios. It just needs finishes and drive-up appeal."
Rents at the buildings totaling 685k SF are $19/SF plus electric, but Younger Partners co-founder Kathy Permenter expects that number to get into the mid-20s after improvements.
Prime Finance and West River Capital sourced the financing. CBRE’s Mike Landon and Frank Piasta originated and secured the financing on behalf of longtime owner McKnight.
Correction, Feb. 20 at 10:55 A.M. CT: A previous version of this story incorrectly named the company Kathy Permenter and Moody Younger co-founded. The story has been updated.
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