KBS REIT Picks Up 522 KSF, Three-Building Dallas Office Complex
The Dallas market didn’t see the same cooling that most of the country experienced over the past few years, and the deals keep coming for the city. In yet another example of REITs getting back in the game, KBS Real Estate Investment Trust III has purchased Town Center Office Park, a 522,043-square-foot, three-building office complex in the city’s Plano submarket.
“North Dallas and specifically the communities of Plano and Frisco have consistently ranked at or near the top in the national job and population growth rankings,” Bill Rogalla, regional vice president & director of acquisitions and dispositions for KBS, said. “Town Center Office Park is located within one of the most prominent master planned communities in the DFW region and KBS is pleased to be in a position to increase its presence within this submarket.”
The three buildings at Town Center Office Park – the six-story, 156,757-square-foot Town Center One, the eight-story, 209,179-square-foot Town Center Two and the six-story, 156,107-square-foot Town Center Three – were completed in 2001, 2002 and 2006, respectively, and are 87.5-percent leased to 51 tenants. The 10.3-acre complex is located 18 miles north of Downtown and 25 miles northwest of Dallas-Ft. Worth International Airport.
“Continuing the trend established during late 2010, office sales in the Dallas area showed solid growth during 2011 with total sales volume rising by 62.8 percent to 9.6 million square feet in trades,” a year-end report by services firm Cushman & Wakefield Inc. said. The city’s transactions saw quite a boost from accessible financing options, typically via life-insurance companies and the CMBS market. Dallas, with unemployment rates around 0.7 percent lower than the national average, should be a “primary target for investors during 2012 and beyond,” Cushman noted.