BH Properties Buys Renovated Plano Office Building

A California investor snatched a renovated office building in one of Dallas’ hottest suburbs.

Los Angeles-based BH Properties purchased the 153,000-square-foot Parkway Centre IV at 2701 Dallas Parkway, just north of Willow Bend Mall, the Dallas Morning News reported.

Newmark Group brokered the sale on behalf of the seller, an investment group affiliated with Goldman Sachs. Terms of the deal were not disclosed.

“Parkway Centre IV is positioned to capture tenant demand for exceptionally located office space in proximity to key decision makers in North Dallas,” Newmark’s Chris Murphy told the outlet. “This asset offers an attractive discount to newer buildings in Legacy, while still providing access to the best-in-class amenities in the area.”

Parkway Centre IV was built in 2006 and recently received a $2 million overhaul, which aligns with a broader trend of office landlords upgrading their assets to compete for tenants. The building is 82 percent leased, with tenants including Norstan Communications, U.S. Metro Bank, Marriott International, Guardian Mortgage, Independent Bank and Sun Life Financial, the outlet said.

BH Properties also owns a Plano shopping center and office assets in Richardson, which is just south of Plano. BH was founded 30 years ago and owns more than 100 properties across 18 states.

Dallas-Fort Worth, like many other major metros, is seeing an uptick in foreclosures and other signs of distress in the office sector. Lingering remote-work trends, hiked interest rates and tough lending standards have wreaked havoc on landlords, forcing some to hand the keys back to their lender, sell their holdings at a steep loss or go into foreclosure.

Yet, a handful of investors have shown confidence in the DFW office market in recent months. In late October, former Phoenix Suns owner Robert Sarver purchased the 2.2 million-square-foot CityLine office complex in Richardson, and a partnership represented by Gildenson Real Estate bought the eight-story One Legacy Circle in Plano around the same time.

—Quinn Donoghue