Brookfield Sells 620 KSF Suburban Dallas Office Campus to GI

The one-year office flip is not as common as it was before the real estate market downturn but it still happens, and Brookfield Asset Management's Brookfield Real Estate Opportunity Fund II recently completed just such an endeavor with the disposition of Regent Commons in Irving, Texas.

Regent Commons - 2The one-year office flip is not as common as it was before the real estate market downturn but it still happens, and Brookfield Asset Management’s Brookfield Real Estate Opportunity Fund II recently completed just such an endeavor with the disposition of Regent Commons in Irving, Texas. In 14 months after announcing the buy of the 619,600-square-foot suburban Dallas office complex, Brookfield has sold the Class A asset to GI Partners.

Brookfield had paid nearly $72.8 million for the three-building Regent Commons in the summer of 2012, relying in part on a $50 million loan from Mesa West to finance the purchase of the property. The transaction was a sale-leaseback with Citibank in which Citi remained in one-third of the campus and left the remaining space vacant. One year later, Brookfield is keeping its lips sealed about the financials of the sale to GI Partners, but turning a quick profit on the 52-acre office destination was the plan all along.

At the time of Brookfield’s purchase of Regent Commons, David Arthur, president and managing partner of Fund II, noted in a prepared statement, “The acquisition of this high quality office campus offers significant upside potential for the Fund in leasing the remainder of the space and is representative of our investing style–acquiring exceptional quality property from owner/users with a long-term leaseback on a portion of the space in markets in which we have considerable expertise.”

Brookfield planned it, and now it’s done. Regent Commons is 100 percent leased. Citi is still in its digs in the building at 4050 Regent Boulevard., and State Farm, after signing a long-term lease in September 2012, is occupying the buildings at 3950 and 4000 Regent Boulevard. With a full tenant roster, the seven-year-old office complex proved irresistible to hopeful buyers.

“There was strong investor appetite for this property from a broad range of investors due to the quality of the asset and the credit strength of the tenants,” Michael Rotchford, an executive vice president with Cushman & Wakefield, noted in the firm’s statement on the marketing and selling of Regent Commons.