The insurance company had occupied 39,440 sf on floors 41, 42, 43, 48 and 49 in the 55-story Chase Tower at 2200 Ross Ave. until Feb. 15. Its loan services group relocated to 2100 Ross Ave., where two full floors had been under construction for several months. Its Chase Tower lease doesn't expire until the end of July.
Sources say the new leases range from seven to 10 years at stair-stepped rates. Pru tried to keep the highly chased deals under wraps, with word leaking to the street after the last lease signing. Pru's broker Michael Wyatt, executive director for Cushman & Wakefield of Texas Inc., couldn't be reached to comment on the deals.
Sarah Payne, senior associate for Dallas-based Stream Realty Partners LP, credits the Chase Tower win to the tenant's desire to keep its capital markets group in trophy space. [IMGCAP(2)]The 14,750-sf lease keeps part of floor 41 and all of 42 under Pru's control--high-profile space right off the sky lobby in the 10-story keyhole bank. "They really like the prestige associated with the sky window," she tells GlobeSt.com. "And, they were willing to pay a premium for that. We've had several new groups to Dallas lease space in the sky window."
Chase Tower's keyhole floors are quoted at $37 per sf plus electric. In contrast, 2100 Ross' class A space is tagged at $19 per sf to $21 per sf plus electric.
Payne says Pru's space planning will be done by summer, allowing finish-out to ramp up so it can move in as soon as possible. When the shuffle's complete, Payne will have 55,000 sf of sky window space in the two towers, which have floor plates of roughly 9,000 sf. She says signatures are pending on a lease with a new oil and gas company and negotiations are under way with a financial services firm that's new to the market. The 1.3-million-sf Chase Tower was 92% leased when it was bought by Houston-based Hines REIT in November 2007 for $290 million.
As for 2100 Ross' win, it's the largest deal that's been signed since New York City-based partners, Moinian Group and SMA Equities, bought it nearly one year ago for $73 million. Pru's lease for floors 24 and 25 pushes occupancy to 85% in the 33-story, 843,728-sf building. Celeste Signor Fowden, vice president for CB Richard Ellis, and the firm's former senior broker Malcolm Ross negotiated the deal. Fowden and CBRE's senior vice president Dennis Barnes lease the high rise.
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