Austin-Based Buyer Of Mostly Vacant Office Buildings Picks Up One DFW Property, Sells Another
One of the Metroplex’s only active buyers of mostly vacant office buildings has just snapped up another property, Bisnow has learned.
Austin-based Capital Commercial Investments purchased 4200 Regent Blvd. in Irving earlier this month for the bargain price of $56 per square foot, according to data provided by Partners Real Estate. The sales price equates to roughly $2M above land value, the company’s Executive Vice President Robb Buchanan confirmed to Bisnow.
The 164K SF, Class-B property was 24% occupied at the time of the sale, Partners data shows.
The purchase comes on the heels of CCI’s sale of 2200 N. Greenville Ave., a 71K SF office property it purchased in 2018. The company renovated the building before selling it to BASIS Texas Charter Schools at $145 per SF, according to Partners.
All of CCI’s properties are single-purpose investment vehicles, Buchanan said, and each property has its own pool of investors. The sale proceeds from the Greenville property were returned to shareholders, and a separate set participated in the 4200 Regent acquisition.
CCI has made a name for itself by acquiring some of Texas’ biggest office campuses, the majority of which are either fully or mostly vacant at the time of sale. The company’s prior purchases include the former headquarters of JCPenney, ExxonMobile, McAfee and American Airlines.
It’s a high-stakes game that most investors are no longer willing to play, but CEO Doug Agarwal is confident DFW’s population growth and dearth of new construction is enough to propel demand.
“The overall net immigration to Texas and Dallas gives us confidence in restabilizing commercial real estate office properties,” he told Bisnow in a previous interview.
A handful of prominent office buildings have traded hands as of late. A 257K SF Dallas office tower sold for $54M to Triumph Financial earlier this week. And in January, Franklin Street Properties sold a 300K SF office building in Richardson to Goldenrod Cos.
