Brookwood Buys 360 KSF Office Property in Dallas
- Jan 02, 2014
Brookwood Financial Partners, L.L.C., has acquired Heritage Square I & II, a two-building, multi-tenant office property located in Dallas, Texas.
The seller and amount of the sale were not disclosed. Los Angeles-based Mesa West Capital provided the financing to fund the acquisition and capital improvements.
Heritage Square is located at the interchange of the Dallas North Tollway and Interstate Highway 635 and contains 359,758 square feet of space. The property was 56 percent occupied at the time of the sale.
“We will be investing over $6 million in targeted capital improvements in Heritage Square, including upgrading the landscaping and renovating the entrances, lobbies, common areas, bathrooms, café and conference and fitness centers,” Thomas Brown, Brookwood’s director of acquisitions, said in a company release. “Consistent with our ongoing value-add strategy, we are acquiring this property at a deep discount to replacement cost and because of our low cost basis, can afford to make these significant upgrades while executing leases at competitive market rates and offering attractive tenant improvement packages.”
According to CB Richard Ellis, the Upper and Lower Tollway submarkets, which comprise the Far North Dallas market, have been two of the strongest performing submarkets in Dallas over the last 24 months. In the past five years alone, the market has experienced nearly 2.5 million square feet of positive net absorption.
“As a well-capitalized owner focused on repositioning the property and leasing space, we will have a competitive advantage over the higher-basis buildings in this submarket,” Brown added.
The acquisition marks the ninth property and fourth in Texas that Brookwood has either acquired or put under contract in the last six months, keeping with the company’s strategy to of buying sound properties from distressed sellers for deep discounts in improving markets.
Cushman & Wakefield represented the seller in the transaction. Charles Foschini, Christian Lee and Chris Apone in the Miami office of CBRE arranged the financing.