PLANO, TX-Cole Real Estate Investments acquired the 318,600-square-foot regional headquarters of Encana Oil & Gas USA Inc., adding the single-tenant, net-leased property to its growing portfolio. The Phoenix buyer paid $120 million for the Legacy Business Park office building located in the far north Dallas submarket.
Construction of the class A office tower at 5851 Legacy Circle was completed in October, 2012. According to a report on Plano's Economic Development website, Dallas-based KDC broke ground on the seven-acre site in 2010. Upon completion of the office building and accompanying parking garage, KDC leased the buildings back to Encana, which is headquartered in Calgary. Corgan Associates was the architect, while Cushman & Wakefield of Texas helped the North American energy producer find the ideal location for its Texas and Louisiana operations. There are 15 years remaining on the Encana lease.
"This latest transaction further illustrates our active portfolio management strategy,” comments Thomas W. Roberts, Cole's executive vice president and head of real estate investments in a press release describing the transaction. “Available proceeds from recent property sales are being invested in a high-quality asset under a long-term lease, providing a strong yield and enhancing portfolio diversification. Those factors, combined with the strategic importance of this facility, attractive location and recent construction, make this an ideal investment while adding a prominent energy sector organization to our growing roster of diversified tenants nationwide.”
A Cole spokesperson tells GlobeSt.com, via email, that the acquisition was appealing for many reasons, not the least of which is that the facility is class A, the lease long-term and portfolio diversification, as Encana is an energy company.
Cole was represented by Boyd Messmann, senior vice president of acquisitions, office and industrial, in the transaction. The seller was represented by Gary Carr, vice chairman, investment properties institutional group for CBRE in Dallas. "Cole heard about the opportunity directly from the seller during the initial development phase," the Cole spokesman notes. "The existing relationships with both the seller and CBRE were beneficial, as there was considerable competition for this asset."
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