Canadian REIT Makes Texas Wish Come True With $56M Buy

DALLAS-By month’s end, IPC US REIT will be holding its first deed in Texas, spending $56.3 million for the 844,000-sf, class A San Jacinto Tower, which has been on the market at least a year and victim of a couple sidelined contracts. IPC vows it will close the deal and flip a 15% stake to locally based PNL Cos.

The REIT will make the close with a $45-million, 10-year first mortgage with a 5.27% fixed-rate interest from the UK-headquartered Barclays Capital Inc. and immediately flip a share to PNL, which headquarters in the 33-story tower at 2121 San Jacinto St. in the Dallas CBD. When the deal closes, it will be the third major asset along Ross Avenue this week to be tagged for a closing before the month ends.

The PNL flip is still under negotiation as is the leasing contract, Y. Dov Meyer, the chief investment officer for the Toronto, Ontario-based IPC, tells GlobeSt.com. The buyer, which manages its assets, is interviewing brokerage houses for the leasing contract, a decision that will be made before the REIT takes the reins from Red River LP, an affiliate of the Texas Teachers Retirement System, and Farmington Casualty Co., part of the St. Paul Cos.