Office Building in Dallas Changes Hands
A highly valued office building in Dallas recently traded hands between two California companies. Earlier this week, Shorenstein Investment Advisers, a San Francisco real estate investor, announced it purchased Sterling Plaza in Preston Center from previous owner, Newport Beach-based KBS.
Although transaction values were not disclosed by either party, KBS noted it was the highest-valued office transaction this year.
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Property Details
Dallas Central Appraisal District values the property at just under $113 million. The 315,000-square-foot property was built in 1984, and marketing material from KBS notes it was renovated between 2010 and 2013.
KBS also noted it added an amenity floor in 2023 with a conference center, fitness center and tenant lounge with a bar.
Other amenities include an on-site café, electric vehicle charging stations, ATM, complimentary bike check-out and storage, car wash and a 15-passenger Mercedes-Benz Sprinter Van ferrying tenants to surrounding dining and shopping options.
Future Plans
Shorenstein is planning to further modernize the lobby, entryway, café and communal outdoor areas.
Preston Center Office Market
Preston Center is one of the Dallas-Fort Worth’s most coveted office markets, boasting the second-largest share of new construction after Uptown.
“Despite national office vacancy rates at historic highs, there are ‘pockets of strength’ in many markets across the country that we’ve invested in — where demand is at or above pre-pandemic levels, availability rates are healthy, and rents are rising fast. The fundamentals in Preston Center are among the strongest we’ve seen nationally, and Shorenstein is excited to capitalize on the momentum,” Colby Wick, Shorenstein managing director, said in a statement.
Vacancy Rate
Preston Center is also Dallas’ most constricted office market, with a 7.8% vacancy rate according to research from commercial real estate brokerage Newmark.
Shorenstein’s Acquisition
Shorenstein’s acquisition of Sterling Plaza is its second in the Dallas market, on the heels of its 2024 acquisition of International Plaza II in the Lower Tollway area.
Newmark brokers Robert Hill, Chris Murphy, Gary Carr and Austin Sheahan represented KBS in the transaction.
Conclusion
The sale of Sterling Plaza is a significant transaction in the Dallas office market, with Shorenstein investing in one of the most coveted areas. The company’s plans to modernize the property will likely attract more tenants and increase the property’s value. As the Dallas office market continues to grow, it will be interesting to see how Shorenstein’s investment in Sterling Plaza plays out.
Frequently Asked Questions
Q: Who purchased Sterling Plaza?
A: Shorenstein Investment Advisers, a San Francisco real estate investor, purchased Sterling Plaza from KBS.
Q: How much is the property valued at?
A: The property is valued at just under $113 million by the Dallas Central Appraisal District.
Q: What amenities does the property have?
A: The property has an on-site café, electric vehicle charging stations, ATM, complimentary bike check-out and storage, car wash and a 15-passenger Mercedes-Benz Sprinter Van ferrying tenants to surrounding dining and shopping options. It also has a conference center, fitness center and tenant lounge with a bar.
Q: What are Shorenstein’s plans for the property?
A: Shorenstein is planning to further modernize the lobby, entryway, café and communal outdoor areas.
Q: What is the vacancy rate in Preston Center?
A: The vacancy rate in Preston Center is 7.8% according to research from commercial real estate brokerage Newmark.
