Parmenter Sells 846 KSF Dallas Office Complex
- Jul 31, 2014
Eight years after acquiring Park Central 7-8-9, a Class A office complex in Dallas, Parmenter Realty Partners has sold the 845,900-square-foot property to an institutional investor. Parmenter is keeping the sale price close to the vest.
Sited near the intersection of Central Expressway and LBJ Freeway in Dallas’ Park Central submarket, the three-building Park Central complex reached completion in 1983, with the 14-story Park Central 7 featuring 365,900 square feet, Park Central 8 offering 266,200 in a 10-story structure and the eight-story Park Central IX providing 213,800 square feet.
Parmenter had owned the property since 2006, when the company acquired it from JP Morgan for its Parmenter Realty Fund III portfolio. Parmenter followed the purchase with $7 million in capital improvements, as well as the securing of LEED certification, and eight years later, the timing was right for the disposition of the asset.
“We had a buyer approach us who believed in that market, who saw the potential for it. And we were able to hit our appraised value,” Steve Bronner, vice chairman of Parmenter, told Commercial Property Executive. “There’s a lot of construction on the LBJ in front of the property and that construction has been completed on our end of LBJ, and the traffic has improved dramatically and we’ve seen a nice trend in rent growth over the last 18 months.”
Unsolicited offer or no, Parmenter was ready to shed Park Central. “We could see the end of [Fund III] coming and a lot of our clients have wanted to liquidate some of the fund holdings, so we took the opportunity when we had it,” Bronner said.
Such was also the case in Dallas with Two Forest Plaza, a 196,200-square-foot office building that Parmenter sold to Encore Enterprises in early July.
However, the two recent Dallas sales are no indication of Parmenter’s feelings about the Dallas office market; the company remains keen as ever on the City. Over the last year, Parmenter has made office acquisitions totaling 1.6 million square feet in Dallas.
“It’s one of hottest markets in the country,” Bronner added, pointing to the city’s enviable job growth, rise in occupancy rates and limited new construction. “We believe in Dallas and we are looking for new opportunities there.”