The firm invests in about 14 markets throughout the southern half of the United States. In addition to Dallas/Fort worth, Parmenter owns properties in Atlanta, Richmond, VA, Nashville, TN and Denver. It is currently raising fund for Fund IV, which is targeted at $500 million in equity, according to Andrew Weiss, chief operating officer of Parmenter Realty Partners.

VHA Place, which consists of 256,000 square feet of office space and roughly 30,000 square feet of ground-floor retail space, is adjacent to Las Colinas Towers I & II, two class office A office buildings also owned by Parmenter’s Fund III. It is 82% leased.

“Fundamentally and physically, I wouldn’t categorize this asset as distressed, but I do think it will have a higher yield than the other Las Colinas buildings we own,” Weiss says, noting that the firm bought those assets for $80 per square foot in 2006.

“There is significant leasing activity in the Las Colinas submarket, which partly motivated our purchase of VHA Place,” Weiss says, pointing out that the area has access to public transportation in the form of the people mover and the forthcoming DART light rail. Additionally, he notes that Las Colinas is transforming into a true 24-7 live, work and play environment.

Weiss tells GlobeSt. that VHA Place offers Fund III stable cash flow, as well as the opportunity to generate additional upside through repositioning, increased occupancy and higher rental rates. “Virtually all the retail component is vacant, and one of the things that we have to do is figure out what we’re going to do with that space,” he explains.

Currently, VHA Place has an asking rate of $18 per square foot, plus electric. “The rental rates in VHA Place are 20% less than the rates in the buildings that we own right next door,” Weiss says, adding that Parmenter will take over property management. Leasing will be handled by Johnny Johnson of CAPSTAR Commercial Real Estate Services.