RICHARDSON, TX-After receiving approval from the US Bankruptcy Court in Delaware earlier this year to dispose of its US headquarters campus, Nortel Networks Corp. has finalized the sale of the two-building property. Dallas-based Pillar Commercial acquired the 17.5-acre campus for $43.l million, according to court documents.
Toronto-based Nortel filed for Chapter 11 in 2009. The sale of its campus, located at 2201-2221 Lakeside Blvd. in Richardson’s Telecom Corridor, is one of the final pieces of its global liquidation. The campus includes a 16-story office building plus a research and development facility.
Pillar Commercial, which specializes in repositioning underperforming investment properties, was one of several potential buyers for the property, which was built in 1991. The acquisition, which totals more than 800,000 square feet, marks the firm’s largest purchase since it was formed in 2004.
“This has been a complex and arduous process, but we are enthusiastic about this investment opportunity,” says Manny Ybarra, founder and principal of Pillar Commercial. “We are equally excited about establishing a strong presence in Richardson’s Telecom Corridor, a market that we believe is poised for a significant rebound due to a strong resurgence of the high-tech industry, as well as the proactive efforts of Richardson’s city leaders.”
Ybarra says that Nortel’s original investment in the facility’s data center, telecommunications and power generating capabilities is part of what made the property so attractive to the firm. For example, the campus features a highly robust chiller plant, multiple back-up generators and dual source electrical feeds.
Additionally, Ybarra contends that the property’s proximity to Galatyn Park Urban Center and the DART light rail station make it one of the region’s premier corporate office sites.
The property was marketed by the CBRE team of Gary Carr, Russell Ingrum, Eric Mackey, Jack Fraker and Josh McArtor. Brian Carlton in HFF’s local office secured acquisition financing, which was provided by Viewpoint Bank.
“The combination of Pillar’s successful track record for performance and strength of equity sponsorship allowed us to quickly get comfortable with the transaction,” says Patrick Ramsier, chief commercial real estate officer at ViewPoint Bank.
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