CBRE Global Investors has acquired two Class A office buildings in Dallas on behalf of its latest US value-added real estate fund. The Los Angeles-based real estate giant purchased Tollway Plaza I & II, which total 369,000 square feet, in the Far North Dallas submarket from Equity Office Properties Trust.
Although CBRE declined to comment, sources familiar with the matter have told PERE that these properties were purchased on behalf of the firm’s CBRE Strategic Partners US Value VI fund. The sales price was not disclosed, but local media reports suggest that the office buildings could have sold for more than $175 per square foot, or $64.6 million.
The properties, which include a four-level parking garage and an adjacent 2.6-acre land parcel, are located at 15950 & 16000 North Dallas Parkway. The recently constructed eight-story buildings feature 25,000-square-foot floor plates and require only minimal capital improvements during the anticipated hold period.
“The Dallas economic recovery is projected to remain strong over the next five years,” said Vance Maddocks, president of CBRE Strategic Partners US, in a statement. “Many of the job gains in Dallas will come from office-using sectors, so this purchase gives us an opportunity to expand our presence in the Dallas area.”
The properties are more than 90 percent leased. Tenants include Sun Microsystems, Travis Wolff, Stewart Title North Texas and HQ Global Workplaces. CBRE's Strategic Partners US team plans to upgrade the existing amenity package, engage a new leasing team and launch a new marketing campaign.
CBRE is looking to raise $750 million for CBRE Strategic Partners US Value VI, according to documents from the San Diego City Employees' Retirement System. Through the vehicle, the firm intends to “purchase, reposition and sell institutional-quality properties in select US markets.” A final closing is intended for December.