Parmenter Acquires Tower at Cityplace; KBS Grabs Uptown Office Building
- Nov 26, 2013
Miami-based Parmenter Realty Partners completed the acquisition of The Tower at Cityplace, a 42-story, 1.3 million-square-foot office building at 2711 North Haskell Ave., less than a mile north of downtown Dallas and the Arts District Uptown. The purchase price was not disclosed.
“Uptown’s vacancy rate currently stands at 11 percent and is projected to be single digit by the end of the year,” said Spence Sowa, senior vice president of acquisitions at Parmenter Realty, in a written statement. “With limited new construction in the surrounding submarkets and an increasing demand for a live-work-play environment, The Tower at Cityplace is strategically positioned to take advantage of the growing market trend.”
Built in 1988, the Class A property features a wide range of amenities, including a 35,000-square-foot fitness center and spa, a full-service conference center with amphitheater and a covered walkway to upscale restaurants and cafes. Additionally, The Tower at Cityplace offers superior parking ratios to competing buildings and the only direct access to the DART rail in Uptown.
The tower’s new owner plans to add value by implementing a series of upgrades, including the renovation of the building’s common areas, as well as the addition of a mixed-use component that will eventually feature more than 600,000 square feet of restaurants, shops and residential dwellings.
Financing for the deal was provided by GE Capital. The seller, an entity identified as Dallas Cpt Fee Owner L.P., according to PropertyShark.com records, was represented by Andrew Levy, Todd Savage and Elizabeth Malone at HFF L.P.
The building was the company’s 10th investment in Fund IV. With this acquisition, Parmenter Realty now owns and operates 3.5 million square feet of office space in the Dallas market.
Meanwhile, KBS Realty of Newport Beach, Calif., has purchased Highland Park Place, a 164,011-square-foot Class A office building in Dallas’ Preston Center submarket, for $31.4 million. The seller, Chicago-based Heitman, was represented by CBRE’s Gary Carr, John Alvarado and Eric Mackey, who also structured the transaction.
“Highland Park Place presented investors with an exceptional opportunity to establish a presence in Dallas’ coveted Uptown submarket, which contains a limited supply of Class A office properties,” said Carr, vice chairman of CBRE. “This offering checked all of the boxes with respect to what investors are looking for today – a stable, in-place cash flow coupled with compelling upside potential.”
Located at 4514 Cole Ave. in Uptown’s Knox- Henderson District, Highland Park Place consists of a 17-story office tower and an adjoined seven-level parking garage. It has recently undergone a major renovation project and now features a refurbished lobby, updated restrooms and tenant corridors, as well as upgraded landscaping.
The property was 84 percent occupied at the time of the sale. Major tenants include the Law Office of Frank L. Branson and the corporate headquarters for Dickey’s Barbecue Pit.
Photo credits: The Tower at Cityplace via Business Wire; Highland Park Place via CBRE Group Inc.