Silver Star subsidiary offloads Irving office building for $12.5M

A Silver Star Properties REIT subsidiary continues to offload office buildings in the Dallas area.

An LLC tied to the Good Companies paid $12.5 million to buy the 170,000-square-foot Westway One, at 1707 Market Place Boulevard in Irving, from Hartman SPE, the Dallas Morning News reported. That’s less than $74 per square foot. 

The sale was spurred by Houston-based Silver Star’s bankruptcy and accompanying strategy to sell off its office and retail holdings to focus on self-storage assets. 

“I believe that the debtor is unlikely to receive a higher or better offer, the purchase agreement represents the best offer obtainable at this time and under current market conditions,” Hartman SPE president David Wheeler said in a bankruptcy court filing.

The 22-year-old property is valued for tax purposes at $20.6 million. It is sandwiched between the Hackberry Creek and Valley Ranch neighborhoods. Tenants include CEC Entertainment, Pei Wei Asian Diner and Lennar Homes.

Hartman previously found buyers for a couple of other office buildings in Dallas.

It is selling a 10-story North Central Plaza I, near Interstate 635 and North Central Expressway in North Dallas, to retailer Costco, which owns adjacent property. Costco has agreed to pay $14.25 million for that 4-acre property. That price works out to almost $134 per square foot for the 106,000-square-foot building.

Hartman’s $14.1 million sale of the Gateway Tower, at 8111 LBJ Freeway in North Dallas, has also received approval from the bankruptcy court. Hamilton Commercial is buying that 15-story, 266,000-square-foot office building for almost $53 per square foot.

Hartman also sold the Prestonwood Park shopping center in Plano earlier this year. 

Silver Star owned 44 commercial properties spanning almost 7 million square feet across Dallas, Houston and San Antonio at the beginning of this year.