Parkway Office Center, located on Dallas North Tollway in Far North Dallas, was sold by KBS Realty for an undisclosed price to investor Apex Pacific Partners. The 229,466-square-foot property is currently 90 percent leased, including the headquarters of major corporate tenants like Capital Senior Living and Gulf Coast Western.
The buyer was “attracted to the compelling risk-adjusted return propelled by the continuing strong occupancy levels and rental rate growth achieved by Parkway Office Center as well as the Lower Tollway submarket,” Eric Mackey, senior vice president at CBRE, said in a statement. CBRE was involved in several aspects of the deal.
The two nine-story buildings were constructed in 1983 and have undergone upgrades on the corridors, restroom renovations on multiple floors, work on all six elevators, HVAC improvements, and lobby renovations. Amenities include a deli, tenant lounge, and conference center. The office buildings include both garage and surface parking, offering a parking ratio of 3.6 per 1,000.
The financing for the office buildings came in the form of a 10-year, fixed-rate loan provided by a life company lender. The financing was negotiated by CBRE’s debt and structured finance division including Greg Greene, Scott Lewis, Matt Ballard, Frank Piasta, and Carter Dunlap.
“We are being proactive in the markets across the U.S. and hopefully this will be the first of many closings to come of similar or larger asset size, with either a value-add component or long term hold,” Subash Kolluru, principal at Apex Pacific Partners, said in a statement.
CBRE’s Gary Carr, John Alvarado, Eric Mackey, and Robert Hill worked on behalf of the seller. The leasing will now be handled by CBRE’s team of Shannon Brown, Jackie Marshall, and Alexandra Jennings.
