Airport Centre I and II were acquired in a 1031 exchange.
BEDFORD, TX—Market trends data indicates an increase of 6% in the median asking price per square feet for office properties compared to the prior three months, with an increase of 14.8% compared to last year's prices, GlobeSt.com learns. Countywide asking prices for office properties have increased 5.2% at $129 per square foot compared to the current median price of $145 per square foot for office properties in Dallas, according to LoopNet.
As an example of sales occurring due to the increase in asking prices, Stanton Road Capital LLC, an investment management firm with more than 800,000 square feet in the Texas office market, acquired an office property in a Dallas suburb. The property, Airport Centre I and II, was acquired through its affiliate, SRC Airport Owner LP, from Allegiancy Houston in a 1031 exchange.
The 251,168-square-foot property comprised of two class-A office buildings is located at 2200-2208 Hwy. 121, at the convergence of Highway 121 and Airport Freeway (Highway 183). The buildings are roughly 10 miles southwest of Dallas-Fort Worth International Airport in the HEB/Midcities submarket. The property has high visibility along State Highway 121.
The properties were placed on the market earlier this year with occupancy at 83%. During the time of the acquisition, tenants included Warrentech (AmTrust Financial), Bravo Health (Cigna) and Federated Mutual Insurance. Developed in 2001, the two-story buildings feature large, efficient 70,000-square-foot floor plates, renovated common areas and a 6/1,000 parking ratio.
“We have seen significant absorption in our Dallas office portfolio by high-density users seeking efficient space. The acquisition of Airport Centre will allow us to offer tenants a value alternative for class-A space when compared to options in the nearby Freeport and Las Colinas submarkets,” said Tim Ronan, founder and managing partner of Stanton Road Capital LLC.
The Dallas-based CBRE team of Eric Mackey, Gary Carr, John Alvarado, Jared Chua, Robert Hill and Pete Van Amburgh represented Allegiancy Houston in the transaction, GlobeSt.com learns.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
