Reserve Capital buys aging office tower

It ain’t over for offices, according to Reserve Capital Partners. 

An investment group that includes Reserve Capital purchased Crestview Tower, a 12-story office building at 105 Decker Court in Irving, the Dallas Morning News reported. The 270,000-square-foot building was constructed in 1982, making it the exact vintage of commercial asset that most investors are moving away from. But Brant Landry, founder of Reserve Capital, says his firm is leaning into it. 

“Most investors are scared of office right now,” Landry said. “We are still bullish on it and looking for opportunities to buy.”

The investors plan to give the building a “significant upgrade,” a crucial part of the deal calculus that figures to bring it up to speed with the Class A office buildings that have managed to retain tenants in the work-from-wherever world. The building, which Reserve says is nearly 80 percent occupied, will get a new lobby, tenant lounge, gym and outdoor spaces. 

Austin-based CapRidge Partners has owned the Crestview Tower since 2014. Southside Bank, a lender headquartered in Tyler, provided funding. 

Reserve owns office and industrial properties across the Southeast. It is currently developing an office complex in Garland, and has major projects in Hutchins and San Antonio as well. 

Las Colinas, a master-planned commercial center in Irving, has been a locus of office deals in recent months. In December, Austin-based Capital Commercial bought a 365,000-square-foot campus formerly owned by Exxon Mobil. Wolverine Interests bought a four-building development at State Highway 114 and Riverside Drive called Riverside Commons in August.

— Joe Lovinger