Caddo Holdings Sells 2 Uptown Dallas Office Buildings to Westdale
- Nov 18, 2014
Flipping is on the menu at Caddo Holdings L.L.C., which just sold two office towers totaling 188,800 square feet in the coveted Uptown area of Dallas, one year after acquiring them. With the assistance of CBRE Capital Markets, Caddo found the right buyer, Westdale Real Estate Investment & Management, for 3500 Oak Lawn Ave. and 4245 N. Central Expressway.
The timing was right. “Since acquiring the assets in 2013, Caddo renovated the North Central Expressway building, added spec suite programs in both buildings and increased occupancies across the portfolio,” Eric Mackey, senior vice president with CBRE, told Commercial Property Executive. “They decided to sell now because they have added value by stabilizing the properties.”
The 34-year-old building at 3500 Oak Lawn features 101,500 square feet, and 4245 N. Central, developed less than two miles away in 1986 and offers 87,300 square feet. The disposition of the properties comes just six months after Caddo sold 3400 Carlisle St. and 2811 McKinney Ave., two other Uptown office assets, to global alternative investment firm Investcorp. Caddo had acquired Carlisle and McKinney in 2011. Caddo has its reasons for choosing to sell properties located in one of the most desirable office markets in Dallas; the fact that the assets are like catnip to buyers right now is probably chief among them.
Westdale couldn’t resist the opportunity to grab 3500 Oak Lawn and 4245 N. Central. “They are long-term holders looking to receiving the existing cash flow and increasing returns as the Uptown market continues to improve/strengthen,” Mackey added.
According to a report by CBRE, Uptown’s direct vacancy rate was just 11 percent in the third quarter, compared to metropolitan Dallas/Fort Worth’s direct vacancy of 17.3 percent. Additionally, the Uptown submarket, with an average asking lease rate of $32.49 per square-foot, boasted the highest rents in the metro area.