DALLAS-Local developer and owner KDC has sold off two class A office buildings to Cole Real Estate Investments for a total of $51 million. The Phoenix-based investor acquired a 147,107-square-foot property leased to the California State Automobile Association Inter-Insurance Bureau for $29 million and a 150,000-square-foot asset leased to Dell Perot Systems for $22 million.
The acquisitions are the first deals that Cole has completed with KDC, according to Robert Micera, Cole’s chief investment officer for office and industrial. “This is one of several deals we’ve talked to KDC about,” he tells GlobeSt.com. “We have several relationships with developers around the country that offer us opportunities to acquire single-tenant properties, and we’re working with developers like KDC to build our acquisitions pipeline. More developers are pitching business on the build-to-suit side, in addition to existing buildings.”
The California State Automobile Association Inter-Insurance Bureau (CSAA) is an affiliate of AAA of Northern California. It uses the LEED Silver certified building as an operations center. Located in Oklahoma City, the property was built specifically for CSAA and completed in 2009.
The building is net leased to the company for nearly nine more years, according to Micera, who notes that the property is the Cole’s first office acquisition in Oklahoma. It owns 27 freestanding retail buildings across the state.
The Dell Perot Systems property, located in Lincoln, NE, was completed in 2009. The LEED Silver certified building, which is leased to Dell for another nine years, is used for business operations including a call center. With the acquisition, Cole owns seven properties in Nebraska, most of them retail assets.
Boyd Messmann, vice president of acquisitions, represented Cole in both transactions. KDC declined to comment in this story.
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