Dallas Boutique Office Portfolio For Sale

Thursday, March 23, 2017

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing for sale a two-property, boutique office portfolio located in Dallas’ most dynamic office submarket, Uptown / Turtle Creek. Currently 90 percent leased with a strong mark-to-market story, the 170,476-square-foot Class A portfolio of 2811 McKinney and 3400 Carlisle features institutional-quality assets within mixed-use environments highlighted by exceptional diversity in terms of lease maturity and tenant mix.

The offering provides an investor the rare opportunity to establish a substantial presence in one of the premier, in-fill locations in the southwestern United States. With 30 percent population growth since 2010, Uptown is Dallas’ most densely populated high-end retail hub and currently has more than 3,000 multi-family units under construction. Uptown boasts more than 4,100 businesses that employ more than 27,500 people.

Office Portfolio for Sale Investment Highlights

  • Retail Repositioning Opportunity:  2811 McKinney and 3400 Carlisle have 27,000 square feet of ground floor retail in Dallas’ most walkable submarket. The submarket boasts an occupancy of 97 percent with strong historical occupancy and retail rental rates with nearly 13 percent year-over-year growth since 2013. Recently executed retail leases in neighboring developments have achieved more than $75 triple net lease (NNN) rental rates.
  • Highly Walkable Location:  Positioned along McKinney Avenue, the spine of Uptown, both commercial properties for sale boast a Walk Score® of 94 (better than New York City). The properties are within walking distance to Whole Foods, West Village and the Katy Trail. Additionally, they have excellent ingress and egress to major highways and arterial thoroughfares.
  • Diversified Tenancy:  The office portfolio for sale has a highly diversified rent roll with no tenants comprising more than 10 percent of the total, and the average remaining lease term is 3.7 years. Fifty-eight percent of tenancy by square footage has a tenure of 10 years or more, with an average tenure of eight years overall. Recent renewals with key tenants show strong tenancy retention, and average in-place rental rates are more than 31 percent below the most recently executed leases.

For more information on 2811 McKinney and 3400 Carlisle or other commercial properties for sale in Dallas, please contact HFF Senior Managing Director Andrew Levy, Managing Director Todd Savage and Associate Director Chris Murphy in HFF’s Dallas office.

Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp, a Texas licensed real estate broker. 

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