DALLAS-When KBS Realty Advisors brought the 145,610-square-foot McKinney Place to market, it brought out a great deal of competitive bidding and buyers. One of those bidders, Velocis, ended up with the class A office building because the fund conducted much of its due diligence on the front end of the process.
"We learned, through relationships, that this one was going to market about 60 days before it did," explains Mike Lewis, Velocis principal, about the office building at 3131 McKinney Ave. "We did our homework upfront; I'd be surprised if anyone else had as much due diligence as we did on the front end."
Though the sales price on the asset was kept under wraps, the Dallas Central Appraisal District values it at $23.4 million. To Lewis, McKinney Place was worth all the effort and work to buy it. "We knew, going in, that it would be asset highly sought after because a) these types of properties don't come available all that often and b) if we look at this premier class A building, it reeks of Real Estate 101. Location, location, location," he tells GlobeSt.com.
The building is currently 90% leased, and Lewis says the upside is that it will be repositioned as a boutique asset, with a club-like atmosphere. "In our relationships throughout the city, we know what people are looking for," he explains. "A lot of us would like to office near each other, and work in an environment in which our businesses are near one another's." As such, tenants can run the range from those involved in oil and gas, to real estate, to investment firms. "Generally, the decision-maker of the business will live nearby and wants to be in an environment that's energetic for employees," Lewis says.
The energy comes from the fact that the Uptown submarket is considered a "walkable" one in that it's easy to get to restaurants, convenience stores, workout facilities – and in some cases, residences – by walking. "That's one of the highest-rated walkable submarkets in the city," Lewis says.
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