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9/18/14
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In an institutional office buy out of Texas, a subsidiary of MetLife Inc purchased Plaza at Legacy, a Class A office tower located at 5465 Legacy Dr, within the premier Legacy Business Park in Plano. The price was not disclosed.
The seven-story, 215.5k sf building has an adjacent two-level parking garage and a surface parking lot. The best-in-class property has undergone more than $2.2 mil in capital improvements since 2012. It is 100 percent occupied.
The property was sold by a joint venture between Hines Interests Limited Partnership and institutional investors advised by J. P. Morgan Asset Management. Hines Corporate Properties (HCP) built the building in 2001 for $42 mil, having signed an agreement at the time with Computer Associates International Inc, who leased the asset for 15 years. HCP sold the asset in 2004 to ING-Clarion for $53 mil.
Then, in 2012, it was re-purchased by Hines, in the joint venture with J.P. Morgan, along with a 12-acre adjacent land parcel that can accommodate a 300k sf build-to-suit. Hines sold the adjacent parcel to Cawley Partners in a separate deal earlier this year.
The building incorporates food services, daycare and an exercise facility. In addition to these on-site amenities, a large number of restaurants and hotels are located within a five-minute drive of the building.
Legacy is home to suburban Dallas’ largest concentration of corporate America, attracting a concentration of regional and global headquarters for numerous Fortune 500 and 1000 companies including Bank of America, Capital One, Dr. Pepper Snapple Group, HP, JCPenney, and PepsiCo. Class A asking rents in Legacy, on average, reflect a 46% premium over the Dallas/Fort Worth markets average, and CBRE Econometric Advisors projects an average annual rent increase of 9.0% over the next five years for the greater Far North Dallas submarket.
Plaza at Legacy’s high-quality tenants feature representation across the financial services, technology, consulting, manufacturing and advertising sectors. The roster includes CA Technologies (NASDAQ: CA), customer loyalty and rewards firm brierley+partners, and Owens Corning.
John Alvarado, Gary Carr, Eric Mackey and Robert Hill of CBRE's Dallas office represented the seller in this latest transaction.
“Plaza at Legacy presented an opportunity to acquire a much sought-after, stabilized acquisition that delivers valuable security balanced by future income growth,” noted Alvarado, Senior Vice President, CBRE. “Investors were attracted to this property because it is a rare chance to establish a significant presence within the master-planned Legacy Business Park.”
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