Uptown Tower Sale Brings New Chapter to Troubled Property

Dallas-based Bradford Cos. is the new owner of Uptown Tower, finally bringing a troubled chapter in the building’s history to a close.

The deal closed late Thursday afternoon, said Weitzman president of institutional office investments Creighton Stark, who brokered the deal on behalf of the previous owner, Houston-based Whitestone Uptown Tower.

Background of Uptown Tower

Whitestone purchased the 4144 North Central Expressway property in 2013. It was built in 1982 and renovated in 1994.

“The property faced capital markets challenges, as well as challenges from ownership,” Stark said. “There was a tremendous amount of capital needed to put into maintenance to compete with neighboring properties. The property hadn’t been improved in a long time — maybe never.”

Current State of the Property

In 2023, the 253,000-square-foot, 12-story tower was more than 80% leased, but Stark said a lack of common-area maintenance led to tenant attrition, bringing its occupancy down to around 52% and putting up barriers to effectively leasing up the property.

Current tenants include Kastl Law, Androvett Legal Media, Dallas Counseling & Treatment Center and Trading Card World, with marketing materials noting large blocks and upper-floor space remain vacant for lease.

Financial Challenges

Last year, a creditor sought to compel owners to sell the property as it was in foreclosure. That December, Whitestone entered Chapter 11 bankruptcy protection.

Related: 12-story Dallas office tower faces loan default

Sale of the Property

Stark said many legal hurdles had to be surmounted, but the sale itself was traditionally marketed.

“That was about the only thing about the sale that was traditional,” Stark said.

The building was offered to potential buyers at a “significant discount to replacement cost,” meaning the property was offered at a lower price than what it would cost to build a similar building from the ground up, including land, construction, permits and other fees.

Stark said the property was sold at a discount because the owners “weren’t willing to spend the money it needed to be habitable.”

Future Plans for the Property

While the final value of the sale was not disclosed, $26 million had been suggested as the minimum bid in 2024.

Dallas Central Appraisal District currently values the property at $22 million.

Stark said Bradford Cos., which did not immediately respond to a request for comment, planned to reposition it to compete with similar Uptown properties. That includes renovating common areas, including the lobby.

“We wanted a responsible, vertically integrated buyer who would be able to take care of the building,” Stark said.

Some of the expenses noted in bringing the building up to snuff include around $2 million for new air conditioning, as well as other structural improvements.

Ultimately, seven offers were fielded with Bradford’s being the most competitive.

Conclusion

The sale of Uptown Tower marks a new chapter for the troubled property. With Bradford Cos. as the new owner, the building is expected to undergo significant renovations to compete with other Uptown properties.

The future of Uptown Tower looks promising, with plans to reposition the property and attract new tenants. As the property undergoes its transformation, it will be interesting to see how it will impact the surrounding area and the local business community.

FAQs

What is the current state of Uptown Tower?

Uptown Tower is a 12-story, 253,000-square-foot building that was more than 80% leased in 2023. However, due to a lack of common-area maintenance, the occupancy rate has decreased to around 52%.

Who is the new owner of Uptown Tower?

The new owner of Uptown Tower is Dallas-based Bradford Cos.

What are the plans for the property?

Bradford Cos. plans to reposition the property to compete with similar Uptown properties, including renovating common areas such as the lobby.

How much did the property sell for?

The final value of the sale was not disclosed, but $26 million had been suggested as the minimum bid in 2024.

What are the expected expenses for renovations?

Some of the expected expenses include around $2 million for new air conditioning, as well as other structural improvements.