A longtime tenant teamed up with a new real estate player in the purchase of an underperforming North Dallas office building.
Oil and gas exploration company Gulf Coast Western and Enverra Real Estate Partners bought Parkway Office North and South, two nine-story buildings at 14180 North Dallas Parkway, the Dallas Business Journal reported. Terms of the deal were not disclosed. CBRE’s Trey Smith, Julee Amparo and Alexandra Cullins are managing leasing.
JLL represented the seller, Principal Financial, which served as the property’s previous lender. Gulf Coast Western and Enverra acquired the loan tied to the office complex, enabling them to foreclose on Apex Pacific Partners, and take control of the property.
The buildings span 230,000 square feet and are only 45 percent leased. They represent a significant value-add opportunity for the buyers, who plan to invest $9 million in renovations, including improvements to the building’s facade, landscaping, lobbies and garage.
The buyers’ plans include creating 38,000 square feet of spec suites, which will provide ready-to-use office space for tenants with small office needs.
The acquisition marks the first deal in Dallas for Enverra, a commercial real estate investment group formed in May. Managing partner Tommy Spinosa sees the complex as an ideal project for the firm’s strategy of snapping up underperforming properties and improving them.
“This acquisition is what I would call right down the fairway for us, in terms of the profile deals we look for,” Spinosa told the outlet. “We like to buy broken real estate that we feel like we can fundamentally change through capital improvements.”
The 1983 building was renovated in 2012 and 2019 but is “underperforming by a long shot,” despite its location in a “high-performing market,” Spinosa said, noting that it offers significant upside.
Gulf Coast Western has been a tenant in the complex since 2012 and is the largest tenant in the building, occupying 14,000 square feet with plans to expand. AVT Title Services is the next-largest tenant, occupying 10,000 square feet.
Additional upgrades will include a fitness center, tenant lounge, conference room and a golf simulator. Renovations have already begun, with some elements expected to be completed within three months. The full project is scheduled for completion by next summer.
— Andrew Terrell
