Jack Crews, managing director in Dallas for Jones Lang LaSalle, says it's been since midyear 2007 that a class A building along the prized Preston Road has come on the market. "Preston Road has almost always been in the same ownership hands," he says. Dallas-based Granite's decision to sell the 10-story structure at 17950 Preston Rd. is merely a move to reap its gain after a 10-year hold, according to Crews, who's teaming with JLL managing directors John Alvarado and Evan Stone to march the building and parking garage to the market.
Crews says the sales pitch will include a call for offers in about three weeks. "This is one that's going to attract interest, whether it's institutional or private," he says. "We're looking for a good response from the market."
Crews says he recognizes that the investment sales scenario is more difficult than a year ago. But, he points out, high-quality buildings with strong performance track records will always be in demand. "You have to have a building that's well positioned. And, we have one," he tells GlobeSt.com.
Preston Plaza, built in 1986, has three tenants with a full floor or more--a Sovereign Bank office plus drive-thru branch, Telligent Systems' headquarters and AYCO Co. LP, an Albany-based wealth management firm. Crew says the full tenant roster has a 3% to 10% annual roll for three years. The sweet spot is in-place leases are at below-market rents that average $18.50 per sf, full service, according to Crews. The market-rate rent is pushing $22 per sf plus electric.
"It's time to harvest the building so they can buy more here and develop in Denver, Dallas and Houston," Crews says. "It's a high-quality owner with a history of a strong performing building. It's a typical movement of an asset and nothing more than that."
Crews says the last Preston Road South sale reeled in a reported $180 per sf. And since there's no pressure to sell the footprint at the corner of Preston and Frankford roads, he says "we're not selling at a discount and we're not expecting to discount."
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