A Houston investor is greatly expanding its Dallas-area holdings with the purchase of four office buildings.
Hartman Income REIT purchased the package of properties from a Morgan Stanley partnership.
The properties total more than 300,000 square feet.
“Morgan Stanley went to the market about a year and a half ago with these properties and had struggled to get them sold,” said Hartman executive vice president David Wheeler. “They had previously had them under contract but had been unable to complete the sale.”
Hartman finally completed the buy Tuesday.
Mr. Wheeler described the buildings – constructed in the 1980s – as a “mixed bag.” They are less than 70 percent leased.
“We saw real value there,” he said. “It almost doubles our holdings” in the Dallas area.
Hartman didn’t disclose terms of the sale, which was handled by CB Richard Ellis.
The properties in the purchase are:
- Avion Business Center on Chenault Drive in Carrollton.
- Central Park Business Center on Firman Drive in Richardson.
- Spring Valley Business Center on South Sherman Street in Richardson.
- Skyway Business Center on Skyway Circle in Irving.
“We will have to spend a lot of money to finish out the interior of these properties and some on the exterior,” Mr. Wheeler said.
Hartman Inceom REIT also owns the North Central Plaza I office tower on North Central Expressway and the Park Central I on LBJ Freeway.
Hartman is a regional, value-oriented, full service commercial real estate group. Hartman entities own and manage office space for lease in Houston, Dallas and San Antonio.