Talley Rents picked up a mostly vacant office property in the Dallas suburb of Irving that was eyed for a multifamily conversion until local officials nixed that idea.
The seller was Santa Barbara-based Zaca Partners, which offloaded O’Connor Ridge Office at 4545 Fuller Drive, according to a release from Marcus & Millichap. Hurst-based Talley was the buyer, and Marcus & Millichap’s Ron Hebert, Joseph Jaques, Nick Fluellen and Bard Hoover had the listing. Hebert and Jaques procured the buyer.
The Marcus & Millichap team initially procured a multifamily developer to purchase the 127,000-square-foot property, but the city of Irving denied a needed zoning request in order to convert it into housing, the seller said in the release.
The buyer is assuming a $7 million mortgage provided by Kansas City Life Insurance Company in 2020, loan documents show. The balance is $4.6 million, and it matures in 2030. The seller paid a principal reduction fee of $1.65 million at closing. The property was valued at $8 million in 2024, according to appraisal district records.
Zaca Partners had owned O’Connor Ridge Office since 2006.
The four-story office property was built in 1980. It includes 30 office suites and is 49 percent occupied, said Hebert. It’s located near Highway 114, about eight miles from DFW Airport and 13 miles from downtown Dallas.
Class B space isn’t exactly flying off the shelves in this office market.
This segment accounts for most of the market’s vacancy, which was 26.8 percent at the end of the fourth quarter, according to data from CBRE. Companies returning to the office are luring their employees back with highly amenitized offices. While some have presented opportunities for renovation, many older properties have become obsolete.
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