Rodney Richerson, senior vice president of KBS Realty, tells GlobeSt.com that the plan is to add "larger and better properties" in the coming years and dispose of smaller holdings around town. He says the firm has made "a few offers" on other local properties, but nothing is under contract at this time.
The just-purchased buildings are One and Two Eldridge Place at 757 and 777 N. Eldridge Parkway, respectively. The deal closed with financing arranged by LJ Melody & Co. through Northwestern Mutual. A team of senior directors, Ken Page and David Chuoke, in the local office of Cushman & Wakefield of Texas Inc. represented the seller, the Brookdale Group of Atlanta.
The seller has spent four years repositioning the 519,746-sf asset, bought at a 30% occupancy and sold at 95%. Brookdale took over the twins from Allied Waste after inheriting them in a $9.1-billion merger with Browning-Ferris Industries and immediately clearing out the buildings. Until then, the BFI headquarters filled about 70% of the class A office space. Today's lead tenant is J. Ray McDermott, an oilfield services firm, occupying 147,000 sf.
KBS Realty's near-term challenge is to find a tenant to backfill 140,000 sf vacated by Global Santa Fe, who's picking up the rental tab for the next 20 months. As with its other properties, KBS Realty passed the leasing contract to Houston-based PM Realty Group's Doug Little and Wade Bowlin. As they search for a replacement, Richerson says the complex, with a quoted rate of $23.50 per sf, will undergo some common-area improvements and substantial landscaping upgrades.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
