The Brookdale Group has acquired a Class A office complex in the greater Dallas area from TIAA-CREF for $230 million.
The Atlanta-based real estate investment firm purchased The Towers at Williams Square in Irving, Texas on behalf of Brookdale Investors VI, a value-added vehicle that closed on $410 million in equity in December 2009. That fund still has sufficient uncommitted capital to acquire an additional $600 million of Sunbelt office properties over the next several years.
The Towers at Williams Square is comprised of four office buildings totaling 1.4 million square feet of space. The asset consists of one 26-story office tower flanked by two 14-story towers and an adjacent five-story building, all of which are located on a 16-acre lakefront site.
“The purchase of this project anchors our sixth fund's investment portfolio with an excellent asset,” said Fred Henritze, co-founding president of Brookdale, in a statement. Brookdale senior vice president Robert Turner added: “The Williams Square acquisition aligns perfectly with our current strategy of investing in Class A office properties in select high-growth Sunbelt office markets and submarkets.”
According to data provider Real Capital Analytics, Brookdale plans to make $10 million worth of improvements to the complex, which is 93 percent occupied. Tenants include oil and gas company Pioneer Natural Resources and global management consulting firms Accenture and Bain & Co.
The Williams Square acquisition follows three other purchases that Brookdale has made on behalf of Fund VI over the past 12 months. In 2011, the firm acquired two four-storey office buildings in Raleigh, North Carolina and the SunTrust Financial Centre in downtown Tampa.