Real Capital Solutions Buys Walnut Glen in Dallas

A Colorado investor is doubling down on Dallas offices, snapping up one of the largest buildings along the North Central Expressway at a steep discount that highlights just how far values have fallen.

Denver-based Real Capital Solutions acquired Walnut Glen, an 18-story, class-A office tower at 8144 Walnut Hill Lane, for $26.1 million, the firm announced on Monday. The Dallas Morning News reported that the deal pencils out to a more than 64 percent discount from the building’s 2016 sale price of $73 million.

The 464,000-square-foot building is about 49 percent leased, according to the broker, JLL, and equates to about $56 per square foot. That vacancy, combined with broader distress in the office sector, has helped reset pricing even for large, well located buildings. For tax purposes, the Dallas Central Appraisal District still values the tower at $72.2 million.

Intercontinental Real Estate Corporation of Boston owned the property for nearly a decade after buying it from a local investment group. Built in the late 1980s, Walnut Glen is a familiar presence along the freeway, anchored by a massive glass atrium facing North Central Expressway.

Real Capital Solutions plans a value-add strategy. The firm said it will invest heavily in upgrades to the lobby, fitness center and conference center and roll out move-in-ready office suites aimed at attracting tenants seeking shorter decision timelines and turnkey space. The company declined to disclose the size of its capital commitment to the outlet, but described it as substantial.

Adam Abeln, Real Capital Solutions’ chief acquisitions officer, said in a statement that the tower “checks every box” in terms of what the firm is looking for in a purchase to create value, such as its scale and location.

The acquisition marks the firm’s second Dallas office play in under a year. Last December, Real Capital Solutions bought Tower at Park Lane — another North Central Expressway property — for $66 million, a signal that the firm is concentrating its Texas bets along the same high-visibility corridor.

That conviction isn’t entirely contrarian. Dallas-Fort Worth is leading the nation in office demand, outpacing markets like New York and Houston, according to recent CoStar data. Net absorption totaled 3.3 million square feet through the third quarter, or about 0.8 percent of total inventory — the highest share in the country. Traditional office leasing in Dallas-Fort Worth is on track for its strongest year since 2019, according to the CoStar report.

— Eric Weilbacher