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7/16/25
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Shorenstein Investment Advisers has acquired Sterling Plaza, a 19-story, 320k sf office tower in Dallas’ highly sought-after Preston Center submarket. The asset, situated on 2.8 acres at 5949 Sherry Lane, was sold by KBS Real Estate Investment Trust III (KBS REIT III).
The Class A property features efficient, rectangular floor plates and offers sweeping views of the Dallas skyline. Currently, the building is leased to a diverse tenant roster, including Prosperity Bank, Sammons Enterprises, Inc. and K-Star. It was 89% leased at the time of sale.
Originally built in 1984, Sterling Plaza underwent a multi-million dollar renovation in 2023. The improvements added a range of modern amenities, including a state-of-the-art conference center, full-service fitness facility with showers and lockers, and a luxury tenant lounge. Shorenstein plans to build on this momentum by further enhancing the lobby, entryway, café, and outdoor communal areas, with a focus on creating a modern, hospitality-inspired experience.
Preston Center is one of Dallas’ most prestigious and supply-constrained office markets. Bordering the city’s most affluent neighborhoods – Highland Park, University Park and Preston Hollow – the property represents about 12% of the submarket’s office supply and provides convenient access to dining, retail and upscale housing.
Newmark Vice Chairmen Robert Hill, Chris Murphy and Gary Carr and Director Austin Sheahan represented KBS in the sale. Executive Vice Chairman Ramsey Daya, Executive Managing Director Chris Moritz, Senior Managing Directors Andrew Porteous and Chris McColpin and Director Josh Francis are arranging the acquisition financing on behalf of the buyer. The price was not disclosed.
The acquisition marks Shorenstein's second recent investment in the Dallas market, following its 2024 acquisition of International Plaza II in the Lower Tollway. The Lower Tollway is another example of a submarket outperforming the broader market with rents increasing over 25% since Shorenstein acquired the property last year.
According to Newmark Research, flight to quality remains a central theme in Dallas’ office market. Class A assets like Sterling Plaza continue to outperform, accounting for 71.5% of leasing activity by square footage in 1Q25.
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