June 3, 2021 10:00 AM
Newmark announces the sale of Heritage One & Two, a recently renovated, 367,364-square-foot office asset at the convergence of the Dallas North Tollway and LBJ Freeway in Dallas, Texas. Newmark Vice Chairman Gary Carr, Robert Hill, Chris Murphy, and John Alvarado, and Director Chase Tagen represented the seller. It was the first acquisition in Texas for the buyer, Oregon-based Menashe Properties, who purchased the property without financing or partners.
Located at 4835 and 5001 LBJ Freeway, Heritage One & Two comprises two Class A office towers with garage and surface parking on a nearly 12-acre site. On-site amenities include a café with outdoor patio, large format conference center and fitness center.
Heritage One & Two is 75 percent leased to a diverse base of tenants that generate a strong in-place cash flow. The property offers significant upside potential through vacancy lease-up, mark-to-market of in-place rents and conversion of new leases to a triple-net structure.
“This sale reflects strong demand for value-add properties in Dallas-Fort Worth that has increased post-COVID-19 and is bringing both first-time buyers and West Coast capital to the local market,” said Hill. “We saw competitive interest in Heritage One & Two driven by the property’s prominent location and proximity to shopping, dining and redevelopment.”
Heritage One & Two is surrounded by ongoing and planned mixed-use redevelopment and is walkable to the Galleria Dallas Mall, which offers dining, shopping and a Westin Hotel. Prominently located at the Dallas North Tollway and LBJ Freeway, Heritage One & Two is easily accessible from all directions and is located within 20 minutes of Dallas/Fort Worth International Airport and Dallas Love Field.
According to Newmark Research, the Dallas-Fort Worth office market had begun to experience moderate investment movement in the first quarter of 2021, following impacts from COVID-19. However, the area continues to be the epicenter of corporate relocation activity due to its access to a talented workforce and State offered incentives.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology, and industry expertise, we bring ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2020, Newmark generated revenues in excess of $1.9 billion. To learn more, visit nmrk.com or follow @newmark.
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