Gary Carr and Russell Ingrum, executive vice presidents in the Dallas office of CB Richard Ellis, had the listing. According to Carr, there was a lot of competition for the property from both private and institutional investors. "It's a great urban infill property, very well located in the Park City area," he says.
This marks the third time the building has sold since 2000. In 2002 Mack-Cali Corp. sold it to Brookview Properties LP, a Dallas investment group, as part of a five-building portfolio that went for $34.7 million. Brookview sold it in 2004 to a nonprofit corporation managed by KBS for an unknown price, but its 2006 appraised value was a bit over $20 million.
PM Realty asset manager Lee Waters calls the property a very attractive asset. "First of all, it's a very nice building. And it's an absolutely wonderful location, catering to high-end tenants who want an office close to home. We did a survey and found most of the tenants live within three or four blocks."
The building is about 95% occupied by a long list of professionals including attorneys, financial companies and real estate firms. Waters says the majority of demand in the area is for 5,000-sf to 10,000-sf offices. Rents for the building, which was completed in 1984, are quoted at $22 per sf plus electricity by Kim Brooks, a senior vice president at Transwestern Commercial Services who had the building's leasing assignment under KBS.
Waters says that high occupancy levels in the general area are forcing rents upward. "Landlords are able to ask and get really premium rents," she says. "We know we can push the rents as space becomes available because of the location. It's right there at everybody's back door."
According to Waters, the PM Realty-Commonfund joint venture is actively seeking additional properties in the Dallas market. "We look at just about everything of quality that comes up," she reports. "We typically don't offer the highest price, but our reputation is that we can close, which gives us an advantage."
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