A New York investor has snapped up the biggest block of available office space on the Dallas North Tollway.
The International Plaza I & II buildings in Farmers Branch have almost 760,000 square feet of space.
The two buildings were left vacant by the recent relocation of JPMorgan Chase and Fannie Mae to new office campuses in Plano.
Now, investment firm Tactic Capital Advisors L.P has purchased the high-rises with plans to renovate and lease the buildings.
“International Plaza is an institutional-grade, Class A office complex, with great visibility right off the lower tollway,” Taconic’s Andrew Lam said in a statement. “We are impressed by its timeless appeal, high-quality construction, campus-like environment, unmatched parking, and efficient floorplates.
“It offers the most available contiguous Class A office space in the entire metro area,” Lam said. “Combine that with the continued expansion and diversity of the Dallas economy, and the area’s strong job sector–you have a once-in-a-generation opportunity.
Built in 1999 and 2002, the 13-story and 15-story towers are located just north of Spring Valley Road on the west side of the tollway.
Together with a third building owned by Crescent Real Estate and Long Wharf Real Estate Partners LLC, the International Plaza project is one of the largest developments in along the tollway.
The sale is one of the biggest office acquisitions in North Texas so far in 2018.
The new owners say the plan to invest “significant capital” to upgrade the empty buildings.
“We’re excited to reintroduce this iconic asset back into such an active market–it has enormous potential,” Lam said.
Redevelopment plans include new fitness and conference centers, increased dining facilities and improvements to the outside areas.
Cushman & Wakefield has been hired to market the offices.
“We have more than 750,000 square feet of existing Class A office space available in one contiguous block, which is unheard of in this market,” Cushman & Wakefield’s Chris Taylor said. “We will be pursuing large corporate users.
“We’re eager to begin marketing the campus, particularly with the number of big deals in the market right now.”
Taylor and Cushman & Wakefield’s Lauren Napper, Matt Schendle and Trey Smith are leasing the buildings.
International Plaza I & II are Taconic Capital’s first purchases in North Texas.
The hedge fund company was founded in 1999 by former Goldman Sachs’ execs.
Taconic Capital has offices in New York, London, and Hong Kong.
It just purchased a downtown Minneapolis building complex for almost $63 million. And it was a partner in the recent acquisition of an historic office block in Philadelphia.
The sale of the International Plaza buildings removed a big question about the office market on the tollway north of LBJ Freeway.
Real estate investors and developers are making big bets on the area with new purchases and projects.
“We already have a couple of prospects looking around” the International Plaza project, said Schendle. “There is an opportunity for someone to come in and have their own campus.”
International Plaza I was built in 1999.