Wells Fargo Tower is 63% occupied, and the building’s three largest tenants are Texas Neurology, Wells Fargo and the Advocate. The quoted rate for the building is $17 to $21 per square foot plus electric.

The building will be leased and managed by Caddo, which plans to attract tenants living in East Dallas, but currently maintaining offices elsewhere. “We have identified a large tenant base, whose profile fits our vision for the building,” Schilling says. “For the East Dallas resident, maintaining offices at the Wells Fargo Tower in Lakewood is a great way to conserve time and help the environment by shortening commutes.” He will oversee the leasing of the building.

Caddo will office onsite and is planning interior cosmetic improvements that will make the building more attractive to East Dallas residents and businesses. Shilling says the new owner will spend more than $2 million to upgrade the building, and Slaughter will oversee the renovations.

The firm received a fixed-rate bank loan to acquire the property. Justin Engler of Cohen Financial arranged the financing, which had LTV below 50%, Shilling says, adding that Caddo Holdings is focused on buying well-located assets with more conservative leverage than was seen in the last real estate cycle.

Shilling notes that the company is pursuing other acquisitions. It is focused on office assets in major Texas markets that offer value-added investment opportunities.