CDI invests in both core and value-added properties, and Kessler describes Bluffview Towers as an institutional quality investment. Developed in 1986 and renovated in 2009, the complex is part of a mixed-use development that includes a recently-renovated 248-room Embassy Suites Hotel and the adjacent, newly-constructed Elan at Bluffview, a 181-unit luxury apartment complex with 11,105 square feet of ground floor retail and 54,587 square feet of restaurant and shop space.

Bluffview Towers is 96% leased and boasts an average remaining lease term of nearly 5.5 years. Major tenants include the GSA, which occupies more than 45,000 square feet, as well as Inland American and Atrium Companies, which both occupy roughly 23,400 square feet.

The complex has an average in-place rent of $18.30 plus electricity, nearly $8 below the Preston Center class A average, according to the marketing package prepared by HFF’s local office. The Preston Center submarket commands an average rental rate of $26.57 gross as of second quarter 2010, a 36% premium to the overall DFW average and second only to the Uptown/Turtle Creek submarket.

“The previous owner put in a lot of capital improvements and leased up the property to high quality tenants,” Kessler explains. “The lease roll-overs are minimal and staggered. All those things added up to a good, solid core investment.”