Thursday, February 29, 2024 Feb 29, 2024
43° F Dallas, TX
Advertisement
Office

Goldman Sachs Sells Plano Office to California Investment Firm

Los Angeles-based BH Properties now has 32 properties totaling 4.6 million square feet in Texas.
By |
Image
BH Properties

Los Angeles-based investment firm BH Properties has acquired a 153,000-square-foot, six-story office asset in Plano. The seller, Goldman Sachs, has owned Parkway Centre IV since September 2013 and recently gave it a $2 million renovation. For the past decade or so, the office has produced a favorable cash flow for Goldman, according to dealmakers close to the deal.

Financial terms were not disclosed, but BH Properties, one of multiple bidders on the property, bought the asset for less than what Goldman paid in 2013—a situation that’s not uncommon in today’s office market.

Built in 2006, the office is in the Dallas North Tollway corridor near campuses for Toyota North America, J.P. Morgan, PepsiCo, and Liberty Mutual.

BH Properties now owns 32 assets in Texas totaling 4.6 million square feet. In all, the firm owns and operates 100 properties totaling 10 million square feet in 16 states. In addition to its LA base, the firm operates regional offices in Phoenix, Dallas, Houston, and Seattle

“We saw this as a great opportunity to expand our portfolio in a growing market with terrific regional access, and a quality tenant base,” said Jim Brooks, President of BH Properties. “This purchase represents our current focus of acquiring well-located, high quality office assets that offer favorable lease-up potential. Although the office market has its challenges today, we continue to focus on best-in-class strategic buys.”

Newmark’s Gary Carr and Chris Murphy represented Goldman Sachs, while BH Properties’ Scott Henry was the in-house buyer representative.

“I think investor sentiment has changed,” Carr said about the office property outlook. “As of October 2023, when the feds came out and said that interest rates have peaked and they will likely be trending down, there’s a sense of confidence that has struck the marketplace.

“There’s plenty of capital out there, and investors don’t want to miss the opportunity to take advantage of the turbulence in the marketplace,” Carr continued. “I think we will see more and more office activity, but overall the concern is still there for the office landscape. The haves and have-nots will continue to exist.”

Author

Ben Swanger

Ben Swanger

View Profile
Ben Swanger is the managing editor for D CEO, the business title for D Magazine. Ben manages the Dallas 500, monthly…

Related Articles

Image
CRE Opinion

An Office Real Estate Portfolio Is About More Than Just Location, Location, Location

CEOs who engage in intentional real estate strengthen their business’ market position, internal dynamics, and market health, writes Arthur Greenstein of Douglas Elliman.
By Arthur Greenstein
Comerica Bank Tower Dallas at Night
Multifamily

Revitalizing Downtown Dallas Through Office-to-Multifamily Conversions

These conversions honor the history of existing structures, which contributes to sustainable urban development, says Ryan Kimura, the senior VP of strategic partnerships at Premier.
By Ryan Kimura
Image
Office

Behind the Deal: Newmark Sells CityLine Office Tower Complex to Former Phoenix Suns Owner

In one of North America's biggest investment property deals of the year Robert Sarver acquires the asset through a Phoenix-based multifamily office tied to his name.
Advertisement