IRVING, TX-Spire Realty Group LP has acquired 500 E. John Carpenter Freeway, a class A office building, from CB Richard Ellis Investors in an all-cash transaction. The purchase price was not disclosed.
Previously occupied by Verizon, the property consists of 202,879 rentable square feet and an adjacent 3.2 acres. CBRE Investors acquired the property in 2007.
Located at the intersection of Highway 114 and Rochelle Drive in Las Colinas, the building has been 100% empty since Verizon vacated it in early 2008.
The building is certainly financially distressed given that there is no income,” says Jon Ruff, senior vice president of Spire Realty. “But from a physical standpoint, I have not seen any other buildings in the market in such good condition.”
Currently, the 1980s-era property is undergoing extensive renovations. CBRE Investors had also begun construction on a fitness facility inclusive of locker rooms with full wet facilities, a multi-purpose conference center and a full service restaurant facility. The new owner plans to complete those improvements and address exterior landscaping among other things, Ruff says.
Ruff tells GlobeSt. the seller had previously spent almost $9 million replacing all of the building systems including elevator, HVAC and electrical. “Its systems have been completely replaced – it’s essentially a new building,” he says. “Our purchase price was less than the value of the improvements alone.”
Peloton Commercial Real Estate is the official leasing firm for 500 E. John Carpenter Freeway, which features a five-level, 600-vehicle parking garage that is connected via sky bridge. The asking rate for the building is $19.50 per square foot plus electric.
Spire Realty’s Dallas/Fort Worth portfolio consists of three office buildings and approximately 12 acres. The John Carpenter building is the company’s second acquisition this year.
In February, it acquired the 390,000-square-foot Chase Tower in downtown Austin, TX. It reportedly paid $72 million for the 21-story building. In total, the firm owns roughly 3 million square feet of commercial real estate.
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