Miami-based Parmenter Realty Partners has acquired the Tower at Cityplace in Dallas as the tenth investment for its fourth fund. Parmenter purchased the property for $136 million from a joint venture between real estate firm Ashkenazy & Agus Ventures and investment management firm Barrow Capital. GE Capital Real Estate provided $100 million in financing for the deal.
The 42-story office building comprises 1.3 million square feet of space. Built in 1988, the Class A building was more than 90 percent leased before GMAC Mortgage (now Ally Financial) vacated its offices during the financial downturn. Now, the building is 69 percent occupied, making it an ideal buy for the value-added strategy of Parmenter Realty Partners Fund IV.
“It’s very well positioned in the market,” Stephen Bronner, Parmenter’s managing principal for the Central and Southwest regions, told PERE. “With uptown rents rising, the submarket will be reaching single-digit vacancy by next year, and there are no competing big blocks of space in the area.”
The property is located less than one mile north of downtown Dallas and the Arts district. The tower also offers the only direct access to the DART rail in the uptown area, as well as a 35,000-square-foot fitness center and spa, 55,000 square feet of meeting rooms, a full service conference center with an amphitheater and a covered walkway to restaurants and amenities. Parmenter plans to renovate the building’s common areas, including the restrooms, corridors and lobbies, and complete other capital projects to enhance the building’s value.
“This iconic building was built with the highest design quality and standards and is the perfect asset to round out Fund IV,” said chairman and chief executive Darryl Parmenter in a statement. Fund IV, which focuses on distressed office assets, closed on $253 million in commitments and $51 million in co-investment and joint venture capital in August 2012. With leverage, the $304 million raised gave Parmenter approximately $1 billion of buying power. Other investments made on behalf of Fund IV include The Lenox Building in Atlanta, 2200 West Loop South in Houston, Brookhollow Plaza I-III in Houston and Fifth Third Center in Charlotte.