Irving, Texas

The property had been under contract for many months with a local Dallas sponsor whose overseas equity partner – in light of COVID concerns - bailed on the deal. Gabriel Silverstein, SIOR, and his team were brought into the transaction to try to save the sponsor’s deal by finding a new equity partner, putting together the capital stack to buy the property, and jointly negotiate a lower price for the acquisition.

Client Objective

• Find a new equity partner...quickly.
• Find debt and otherwise complete the entire needed capital stack to purchase, renovate, and lease-up the property.
• Renegotiate a much lower purchase price while convincing the seller that a new equity partner would be found.
• Successfully close.
  
  

Transaction Profile

• Value-add trophy office property in the Urban Center of Las Colinas (Irving/Dallas, Texas) with great bones but which had not been renovated in the roughly 40 years since it was built.
• The property was roughly 70% leased, with some loyal, long-term tenants, but had a terrible reputation in the market with tenants and tenant reps.
• The sponsor who had it under contract had no track record of successfully acquiring projects of this dollar size, but had a great internal team to execute a very solid business plan.
  
  

Solution

• Gabriel and his team quickly identified a co-GP/LP investor partnership and negotiated the structuring of that partnership.
• Gabriel and the sponsor were able to negotiate the purchase price down an additional $12 million, despite at one point falling out of contract and with over a year of the sponsor’s previous inability to close on the purchase
• Within 10 days of closing, the sponsor had already executed the first new lease – at terms better than the pro-forma.

PARTICIPANTS & INFORMATION PROVIDED BY

Gabriel Silverstein, SIOR