"Certainly, there was a lot of interest in the asset from other prospective buyers," Charles Hazen, president of Houston-based Hines REIT, tells GlobeSt.com. "We felt it was a very good property on the Dallas skyline, great tenant roster and great location in the Arts District."
Stream and locally based Highland Capital Real Estate Fund bought the 2200 Ross Ave. high rise last year, bringing it to market five months ago. The joint venture sellers reportedly paid $200 per sf for the deed in June 2006. Holliday Fenoglio Fowler LP marketed the 92%-leased asset, which Hines will now manage.
There are hardly any lease rollovers until 2015. According to an SEC filing, the largest tenant is Chase Bank in 210,707 sf in a pact that expires September 2022. The second-largest tenant is Locke Lord Bissell & Liddell LLP, which occupies 207,833 sf through December 2015 and Deloitte & Touche LLP has 154,476 sf until June 2012. Fulbright & Jaworski LLP controls 146,064 sf through December 2016.
Built in 1987, Chase Tower is a Skidmore, Owings & Merrill design, with a curved glass top and seven-story keyhole near the top. "We're really ecstatic to have it. It's great architecture and a great long-term asset as well," Hazen says about the REIT's only Downtown Dallas deed in the 40-asset portfolio. Its other office asset in Dallas proper is the fully leased, 220,079-sf Citymark Building at 3100 McKinnon St. in Uptown, which is under contract for $39 million. The deal is slated to close in early December, according to the SEC filing.
Hines REIT's typical hold is five to 10 years. "We may very well own this a long, long time," Hazen says.
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