Chambers Street Grabs 227 KSF Office Campus in Suburban Dallas
- Aug 23, 2013
Chambers Street Properties has added 226,900 square feet of premier office space to its metropolitan Dallas portfolio with the acquisition of Carpenter Corporate Center I and II in Irving, Texas. Chambers Street doesn’t talk numbers when it comes to acquisitions; however, as noted in an SEC filing, the property was picked up for approximately $49.5 million. And according to Dallas County records, the previous owner was Opus Real Estate TX VII.
Snapping up a premier office asset in thriving metropolitan Dallas is no simple feat. “There’s some pretty solid competition out there at this particular point in time,” Philip Kianka, executive vice president & chief operating officer with Chambers Street, told Commercial Property Executive. “There are still other investors that are looking for the yield and they’re looking for the stability of the income coming off of a property such as Carpenter Corporate Center. So it’s a pretty health market and pretty competitive.”
Indeed, Carpenter Corporate Center provides a solid, steady stream of income; the two three-story towers are 100 percent net leased to Corphealth Inc. through 2019.
“What we really like about this particular transaction is the location of it and we love our tenant,” Kianka said. “We love the fact that it’s a long-term net lease asset. That is our core strategy; primarily we’re looking for net lease office and industrial properties.”
Carpenter Corporate Center I and II, which carry the addresses of 2001 and 2101 W. John Carpenter Freeway, occupy nearly 17 acres within the 12,000-acre Las Colinas master planned development, less than 10 miles from downtown Dallas. The buildings first opened their doors in 2008 and 2009, respectively, and are practically twins, with each featuring roughly 111,800 square feet of net leasable space. Chambers Street relied on borrowings under its unsecured credit facility to fund the acquisition of the campus, which marks REIT’s third office asset in the Dallas/Fort Worth Metroplex.
“We still find the Dallas market a very viable market, particularly due to the fact that there’s been improving economics; there’s been decent job growth, there’s been new entities moving into the area,” he added.
However, it’s not all about Dallas or any other specific city. Chambers Street’s office acquisition strategy is not based on geography, it centers on a presence in solid markets, and the possibility of second generation use for a location.
“We’re still seeing some good prospects out there for continued growth,” Kianka added. “We’re very selective and very disciplined about what we do and that’s one of the cornerstones of our strategies. We’re not just looking to place money for the sake of placing money; we’re looking to make sure that it creates a strategic fit within our overall portfolio.”