Trammell Crow, One Liberty Plan Two Class A Office Towers for Plano Business Park
- Apr 30, 2012
Trammell Crow Co. and a subsidiary of One Liberty Properties Inc. are about to add more than a half-million square feet of premier space to the suburban Dallas office market. The two companies have formed a joint venture to redevelop a six-acre site in the master-planned Legacy Business Park in Plano into Legacy Towers, a two-building complex.
One Liberty has owned the site along the Dallas North Tollway since 2003, when it acquired the land and the 113,000-square-foot building on it in an approximately $13.5 million transaction. The REIT contributed the property, currently occupied by a retail furniture operator under a short-term lease agreement, to its joint venture with Trammell Crow in return for a 90 percent equity interest in the partnership. Trammell Crow contributed $1.5 million for the remaining 10 percent stake.
The partners will develop the proposed Legacy Towers in phases, the first of which will result in a 13-story tower featuring 341,000 square feet. The second phase of the project will produce a seven-story building with roughly 192,500 square feet. Construction is on track to commence in 2013.
Certainly, the national office sector has gone on the upswing; still, it’s not every day that a developer announces plans for a project that will add 533,500 square feet to the market. Parts of Plano, however, are primed for new projects. The Upper Tollway/West Plano submarket closed the first quarter of 2012 with a 7.7 percent vacancy rate for Class A space, according to a report by Transwestern. And of the 474,000 square feet of office space under construction, 59 percent is already pre-leased.
With demand for Class A accommodations on the rise in the Upper Tollway/West Plano submarket, other new development projects are also coming to the fore. Heady Investments is reportedly planning a 164,000-square-foot spec building at Legacy. The build-to-suit market is active as well. Trammell Crow, which acquired 404 acres at the park in 2006, is currently developing a 225,000-square-foot campus for MedAssets and a 280,000-sqare-foot building for Ericsson’s expansion at the park.