Newmark Assists KBS in the Sale of Sterling Plaza, a Class A Office Tower in Dallas’ Most Sought-After Submarket

Dallas, TX (July 14, 2025) — Newmark announces the company has facilitated the sale of Sterling Plaza on behalf of KBS, one of the largest owners and operators of premier commercial real estate buildings in the nation. Owned by KBS Real Estate Investment Trust III (“KBS REIT III”), a publicly traded REIT managed by KBS, Sterling Plaza is a premier 19-story office tower located at 5949 Sherry Lane in Dallas’ highly sought-after Preston Center submarket.

The undisclosed sales price is the highest amount paid for an office property in the Dallas-Fort Worth market this year^[2].

Newmark Vice Chairmen Robert Hill, Chris Murphy and Gary Carr and Director Austin Sheahan represented KBS in the sale to real estate investment company, Shorenstein Investment Advisers. Executive Vice Chairman Ramsey Daya, Executive Managing Director Chris Moritz, Senior Managing Directors Andrew Porteous and Chris McColpin and Director Josh Francis are arranging the acquisition financing on behalf of the buyer.

Originally built in 1984 to the highest institutional standards, Sterling Plaza was acquired by KBS REIT III in 2013. Since then, the property has been meticulously maintained, introducing a series of hospitality-inspired enhancements over the years. In 2023, the company completed a successful multimillion-dollar renovation that added a state-of-the-art conference center, a modern fitness facility and a luxury tenant lounge. The Class A property features efficient, rectangular floor plates and offers sweeping views of the Dallas skyline. Currently, the building is leased to a diverse tenant roster, including Prosperity Bank, Sammons Enterprises, Inc. and K-Star.

“In an office market that’s evolving rapidly, Sterling Plaza remains a standout performer,” said Hill. “Its efficient floor plans, upscale amenities and strategic positioning have helped it sustain nearly 90% occupancy for a decade – a testament to its enduring appeal and strong reputation.”

Set on 2.8 acres, Sterling Plaza is ideally located in Preston Center, one of Dallas’ most prestigious and supply-constrained office markets. Bordering the city’s most affluent neighborhoods – Highland Park, University Park and Preston Hollow – the property represents about 12% of the submarket’s office supply and provides convenient access to dining, retail and upscale housing.

“On the cusp of what will likely be remembered as a period of hyperbolic rent growth, assets like Sterling Plaza have proven that there is incredible depth in the bidder pool for well-located, high-quality office space – evidenced by the 20+ offers received, many from institutionally capitalized investors,” said Murphy. “We look forward to seeing Sterling Plaza’s continued success as new ownership builds upon the legacy created by our client over the past 12 years.”

According to Newmark Research, flight-to-quality remains a central theme in Dallas’ office market. Class A assets like Sterling Plaza continue to outperform, accounting for 71.5% of leasing activity by square footage in 1Q25.

Brett Merz, Asset Manager of Sterling Plaza, Co-Director of Asset Management and Senior Vice President at KBS, highlights Sterling Plaza’s suburban location as ideal for attracting and retaining employees:

“Tenants want modern office spaces that are vibrant, amenity-rich, located in desirable locations that attract talent and foster collaboration. With its emphasis on flexibility, state-of-the-art technology and tenant well-being, Sterling Plaza helps promote teamwork and innovation, making it a great place to work.”

^[1],[2] By sales price, according to Newmark Research and Real Capital Analytics

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the twelve months ended March 31, 2025, Newmark generated revenues of over $2.8 billion. As of March 31, 2025, Newmark and its business partners together operated from 165 offices with approximately 8,100 professionals across four continents. To learn more, visit nmrk.com or follow @newmark.

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