GlenStar, USAA Dive into D-Town
- Jul 24, 2015
By Keith Loria, Contributing Editor
GlenStar Properties and USAA Real Estate Co. have partnered on the acquisition of Energy Square, a three-building Class A office complex in Dallas, from a joint venture between Champion Partners, Lincoln Property Co., and Longwharf Real Estate Partners.
The price of the deal was not disclosed, but several published reports indicate it was north of $150 million. The new owners are planning to redevelop the property to bring in additional office, retail, and potential multi-family components
“We are extremely excited to be part of such an iconic project in Dallas,” Matt Omundson, GlenStar Properties’ principal, said in a company statement. “Our goal is to further enhance the great campus setting with amenities and upgrades that will benefit the entire project and surrounding area.”
The trio of buildings was last renovated in 2012 and total 958,445 square feet of office space on a site bound by Greenville Avenue, University Boulevard and Interstate 75. Currently, Energy Square has nearly 40,000 rentable square feet of contiguous space remaining.
JLL’s managing director Jeff Eckert, executive vice president Daryl Mullin, senior vice president Jay Bailey and vice president Blake Shipley will lead the leasing and marketing effort at Energy Square.
The investment partners have had a successful history. In 2012, USAA Real Estate Co. and GlenStar acquired the iconic Chicago Board of Trade in the city’s downtown area, and have made $30 million in improvements.
According to JLL’s 2Q Dallas market report, near-record demand is putting upward pressure on area rental rates, but the North Central Expressway submarket is one of the most affordable in the Metroplex, making it extremely attractive to tenants and projected leasing activity.
Furthermore, Mullin noted Class A office space comparable to what Energy Square has to offer is nearly impossible to find, as the property offers convenience through ease of accessibility on North Central Expressway and the DART Rail line, as well as access to numerous area amenities.
The complex was awarded LEED certification at the Gold level by the U.S. Green Building Council and Energy Star label in 2013 for its operating efficiency. Energy Square amenities include a fitness facility, tenant conference centers, banking facility, and four dining options.