TRANSACTION TYPE & DETAILS
Date: August 26, 2021
Transaction Type: Investment Sale, Debt/Equity
Property Type: Office
Size: 512,269 sq.ft.
Sale Price: $93,674,000 USD
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.
- 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.
- 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.
- 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