Richard Ellis has purchased The Colonnade office buildings in Texas through the firm’s $2.1 billion (€1.3 billion) CBRE Strategic Partners US 5 fund, which closed in May. The fund comprises two vehicles, Strategic Partners US Value 5 and Strategic Partners US Opportunity 5. Financial terms of the deal were not disclosed.
The Colonnade, located in the city of Addison, in Dallas, comprises three class A office buildings totaling approximately one million square feet of space. Colonnade I, II and III, located at 15301 to 15305 North Dallas Parkway is in Dallas’ Far North real estate market, an area which has the lowest vacancy among the five largest Dallas submarkets, according to the firm. The property is 75 percent leased.
CBRE is pursuing LEED certification for the property. The firm currently has nine other properties in the Dallas market including two in the Far North market.
The Texas office market has seen robust investor interest in recent months. California-based Thompson National Properties acquired the Oakwood Tower and One Lee Park West office buildings in Dallas in May through its $250 million Bruin Fund. The properties are located in the Uptown/Turtle Creek area of Dallas and total approximately 118,370 square feet of leasable space. Rents in the area are 30 to 40 percent below market, according to the firm.
US real estate investment firm Hines also acquired the 64-story landmark Williams Tower office building in Houston in May. The firm paid $272 million for the 1.5-million-square-foot property, which also included an interest in the adjacent 2.8-acre Waterfall Park and a nearby 2.3-acre undeveloped land parcel.