search

The Real Deal Logo

Trending

Hearn, GEM face $275M Loop office foreclosureHearn, GEM face $275M Loop office foreclosureAdam Neumann says WeWork lied about his $650M offerAdam Neumann says WeWork lied about his $650M offerWeWork to close corporate HQ in bankruptcy restructuring WeWork to close corporate HQ in bankruptcy restructuring Developers have a new tax break. Now they must figure it outDevelopers have a new tax break. Now they must figure it out
Commercial
Dallas

Hitting bottom? Irving office building trades for $56 per SF

Austin-based Capital Commercial Investments, which specializes in buying up bargain-basement office assets, might’ve found the bottom of the DFW market

Capital Commercial Investments Buys Irving Office Building
Capital Commercial Investments' Doug Agarwal and 4200 Regent Boulevard in Irving (Loopnet, Capital Commercial Investments)

An office building in the Dallas-Fort Worth Metroplex traded for $56 per square foot recently.

Capital Commercial Investments, an Austin-based firm that buys bargain-basement office assets, bought 4200 Regent Boulevard in Irving, Bisnow reported.

Built in 2000, the 164,000-square-foot building was 24 percent occupied, according to Partners Real Estate. Its $9.1 million sale price is well under its $15.7 million property tax appraisal. The owner, whose identity is hidden behind an LLC, received a tax bill of almost $343,000 last year.

Spaces in the two-story building lease for $17 per square foot, according to a Transwestern flier.

Capital Commercial Investments, led by CEO Doug Agarwal, buys office buildings in the Dallas area, including a few high-profile ones.

In 2022, the firm bought the former ExxonMobil campus at 5959 Las Colinas Boulevard in Irving. Capital Commercial Investments hired JLL to find a single corporate tenant to transform the property into a mixed-use campus.

It has also purchased American Airlines’ former headquarters south of DFW International Airport as well as JCPenney’s headquarters in Plano.

Sign Up for the undefined Newsletter

The firm’s strategy often involves finding a single tenant buyer for the buildings it acquires.

For example, it bought the three-story, 71,000-square-foot office building at 2200 Greenville Avenue in Richardson in 2018. It renovated the building and sold it to BASIS Texas Charter Schools for $145 per square foot, the outlet said.

All of the firm’s transactions are “single-purpose investment vehicles,” so each one has its own pool of investors, the outlet said.

The DFW Metroplex’s rapid population and job growth keep Agarwal bullish on the office market, despite the trend of distress, related to the rise of remote work, that has plagued the asset class nationwide.

In Texas, where sale prices aren’t usually disclosed, $56 per square foot is the lowest price for a Dallas-area office building that has been reported publicly since distress started to set in over the past few years.

—Rachel Stone

Read more

Companies and People
Capital Commercial InvestmentsDoug Agarwal
Tags
AcquisitionSale