Gutow Scoops up North Central Expressway Office

Another North Dallas office building is trading at a moment when buyers are finding discounted opportunities along the I-635 Tollway and U.S. 75.

The Gutow Company acquired the 13-story office tower at 12001 North Central Expressway through a partnership with Dallas-based Vertical Partners, the firm said on Tuesday. The Dallas Business Journal reported that the 246,955-square-foot building, formerly known as the Atlas Energy Tower, will be rebranded 12001 NCX. Terms of the deal were not disclosed.

The property was valued at $28.5 million this year, according to the Dallas Central Appraisal District. If the building traded at or above its appraisal value, the sale equated to at least $115 per square foot.

Dallas County land records show the seller, Atlas Coit Central LLC, had owned the building since 2018. Built in 1984, the tower is known for its prominent signage along the Central Expressway corridor.

Dallas-based Gutow is buying into a market still sorting through office distress. In December, Denver-based Real Capital Solutions paid $26.1 million for the nearby 18-story Walnut Glen building, a roughly 64 percent haircut from its $73 million sale price in 2016.

At 12001 NCX, Gutow sees upside, as the building is about 50 percent leased, with 15,000 square feet of new leases recently signed and additional deals in negotiation, founder Craig Gutow said in a statement. He pointed to leasing momentum, capital improvements and “hands-on ownership” as the path to value creation, according to the outlet.

The firm plans to upgrade common areas, refresh amenities and offer fully built-out, move-in ready suites, aiming to attract smaller tenants seeking turnkey space without the upfront construction costs.

Founded in 2003, Gutow owns office and apartment properties across North Texas, including another building nearby at 9900 North Central Expressway.

Demand in the area is picking up, as Alabama-based insurance brokerage CRC Group announced in January that the firm is consolidating its four Dallas-Fort Worth offices into a single 49,000-square-foot hub at the Lakeside Square office in North Dallas, also within the U.S. 75 and I-635 corridor.

— Eric Weilbacher