The no minimum-ask run is expected to come within 30% of the replacement cost, which in today's market would be about $100 per sf, including land costs, according to CB Richard Ellis' investment sales team. The 80%-leased park holds a pair of 100,000-sf buildings at 3801 and 3901 E. Plano Pkwy. and an 83,559-sf structure at 4001 E. Plano Pkwy.
"The submarket's been tight on sales. There's nothing we know of around it for sale," says Conor Feeney, CBRE's associate. "That submarket has one-offs that don't necessarily have a common theme. This is a park environment with synergies that allows you to capture efficiencies in management and operation."
The call for offers will be in mid-August. The goal is a third-quarter closing for the CBRE team, which includes vice chairman Jack Fraker and first vice president Josh McArtor.
McArtor tells GlobeSt.com that IDI "still has a land position in Plano that's not part of the package." And, he adds, that the motivation for the sale is to "harvest some gain and recycle the capital" from a 19-acre park, developed in 2001 near the intersection of US Hwy. 75 and the George Bush Tollway.
The 80%-leased park's largest tenant is Plano Data Record Management Co., which leases the entire 3901 E. Plano Pkwy. building. The roster has nine tenants, with the average remaining term on leases at three years, according to Feeney. The fully leased air-conditioned buildings also sport 30% office finish-outs.
"A potential investor would get a huge discount to replacement cost and be able to provide a competitive lease rate," McArtor says, citing office upgrades of $65 per sf as the differentiating factor between the park and its neighbors. Flex industrial space, laced with comparable tenant improvements, most likely would yield $75 per sf to $85 per sf at closing tables. "It's institutional quality, but the deal size makes it attractive to private investors," McArtor points out.
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