KBS Buys 296 KSF Office Tower in Dallas
- Dec 03, 2014
KBS Capital Advisors has acquired 3811 Turtle Creek, a 296,000-square-foot Class AA office tower in Dallas, from MetLife Real Estate Investors.
HFF marketed the asset on behalf of the seller. It also secured a seven-year, 3.55 percent, fixed-rate acquisition financing on behalf of the new owner through a life insurance company. The price of the transaction was not disclosed.
“The property has a great location and a diversified rent roll with no large tenant exposure,” Ryan McManigal, KBS’ vice president, told Commercial Property Executive. “It is well built, and there is a dynamic retail renovation going on next door that will include five – six eateries, a grocery store, and a possible high-end gym.”
The 21-story, recently renovated property features a fitness center, and parking within an adjacent 899-space garage.
The property is situated on a 5.03-acre site at the intersection of Turtle Creek Boulevard and Blackburn Street adjacent to the new Turtle Creek Village mixed-use development currently under construction.
The building is located close by West Village, the Katy Trail, and the affluent neighborhood of Highland Park.
“It competes well with lower Uptown assets,” McManigal said. “Traffic congestion is becoming a problem there due to construction, so this asset is well positioned to take advantage of this. Also, it’s very close to Highland Park, where most of the decision makers live. Vacancy rates are very low and rates continue to climb. Job growth in Dallas remains very strong, so micro and macro fundamentals are both positive.”
At the time of the sale, 3811 Turtle Creek was 81 percent leased, with a tenant base that included Eagle Materials, Inc.; Prosperity Bank; Estes Okon Thorne & Carr; and Gables Residential.
According to McManigal, there’s a plan to spend more than $2 million in lobby and common area renovations.
“Turtle Creek Village redevelopment is an integral part,” he added. “The goal is to modernize the building while maintaining classic appeal.”
Since its inception in 1992, KBS and its affiliated companies have completed transactional activity of more than $30 billion via 14 separate accounts, six commingled funds, five sovereign wealth funds and five non-traded REITs.