Austin’s Endeavor Real Estate Group just planted a flag in Dallas, scooping up a Preston Hollow property in an off-market deal that gives the firm its first mixed-use property in the city.
The firm purchased Preston Sherry Plaza, a 165,000-square-foot complex at 8201 Preston Road, the Dallas Business Journal reported. Terms of the deal weren’t disclosed, but the complex was last valued at $63 million, according to the Dallas Central Appraisal District. Seattle-based Unico Properties was the previous owner.
The seven-story building at 8201 Preston Road includes two floors of retail and five floors of office space, with tenants ranging from Hilltop Securities and Frost Bank to plastic surgeons and dermatologists. Sevy’s Grill, a longtime Preston Hollow power-lunch haunt, anchors the ground floor. The property, built in 1986 and renovated this year, is 93 percent leased. JLL handled financing and will lead leasing, while Dallas-based Four River Capital is a partner on the deal.
Endeavor, which controls $5.6 billion in assets, is best known for reshaping Austin with projects like The Domain and Southpark Meadows. It recently tapped Dallas veteran Andrew Levy from JLL to run capital markets and brought in Zach Johnston to grow multifamily in North Texas. The firm is already building a 780-unit student housing project at Texas Christian University called Morado on Berry with Robert A.M. Stern Architects.
The Preston Hollow buy underscores Endeavor’s Sun Belt strategy as it looks for “thoughtful upgrades” to boost tenant experience in one of Dallas’ priciest office and retail pockets. The property’s location near Southern Methodist University, Love Field Airport and the high-end Preston Center cluster adds cachet, even as Dallas’ broader office market remains under pressure.
Preston Hollow’s blend of wealth, schools and retail keeps landlords optimistic, and CoStar data shows rents in the submarket ranging from $50 to $61 per square foot for upscale retail — among the highest in Dallas. The area is also not far from Preston Center’s nearby office towers.
— Eric Weilbacher
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