Dallas Galleria Office Towers Trade for $396M
- Feb 13, 2020
Piedmont Office Realty Trust has finalized the acquisition of the Galleria Office Towers, three Class A high-rise buildings totaling 1.4 million square feet in Dallas. CBRE Global Investors sold the properties for nearly $396 million, according to public records. The deal included the properties’ adjacent parking structures and a 1.9-acre land parcel located at the junction between Dallas North Tollway and Interstate 635. The assets last traded in 2015, when the seller purchased them for $300 million from Cannon Commercial.
The new owner plans to finance the acquisition with the proceeds from the sale of 1901 Market Street, a 760,613-square-foot skyscraper in Philadelphia, according to C. Brent Smith, Piedmont’s president & CEO. Additionally, the acquisition brings the company’s Dallas footprint to a total of 3.6 million square feet. This means 50 percent of Piedmont’s assets are situated in the Sun Belt, with the metro being its second-largest market.
Green Galleria Portfolio
One, Two and Three Galleria Towers are located at 13355, 13455 and 13155 Noel Road. The properties came online in 1981, 1984 and 1990, respectively. In 2017, the buildings underwent a $16 million cosmetic renovation, according to Yardi Matrix. All three high-rises are LEED Certified Green Buildings. At the time of sale, the buildings were at least 90 percent occupied by tenants such as Amazon, Ryan LLC, Ansira Partners and Kimley Horn.
The properties are situated roughly 13 miles from downtown Dallas and 16 miles from Dallas/Fort Worth International Airport. Skybridges connect the buildings to the amenities at their base, such as the Galleria Dallas shopping center and the 448-key Westin Galleria Hotel.
Last August, Piedmont paid more than $231 million to acquire Galleria 400 and Galleria 600, two office buildings totaling 860,000 square feet in Atlanta. Combined with Galleria 100, which it already owned, The Galleria portfolio is now under sole ownership for the first time.