BEVERLY, Mass.--(BUSINESS WIRE)--Brookwood Financial Partners, LLC, a nationally-recognized private equity real estate investment firm, today announced that it has acquired the MacArthur portfolio for $54,500,000 in the Las Colinas submarket of Irving, TX. The 488,287 square foot Portfolio is comprised of one Class A and two Class B multi-tenant office buildings and is currently 95.4% occupied.
Brookwood is acquiring the Portfolio at an attractive cost basis and a significant discount to replacement cost. Consistent with its historical value-add philosophy, Brookwood plans to invest approximately $8.7 million across the Portfolio to increase the physical quality of the buildings, add numerous new amenities and significantly increase the number of parking spaces. Specifically, Brookwood will be adding a new café, conference center and fitness facility, remodeling the building lobbies, common areas and restrooms, and upgrading building exteriors and entrances. In addition, Brookwood will be constructing an additional parking lot adjacent to the three buildings, which will include numerous new covered spaces and markedly increase the available parking at the Portfolio. “The Portfolio will offer tenants centrally-located office space with best-in-class amenities,” stated Kurt M. Zernich, Brookwood’s Director of Asset Management.
“What attracted us to the Portfolio was the opportunity to create immediate value by leasing the vacancy to be created by the departure of One Source from MacArthur I, which will be vacating on December 31, 2016. The continued improving market coupled with the significant improvements we will be making to the Portfolio, and the increased parking ratios, should allow us to achieve higher rental rates from new tenants,” stated Thomas W. Brown, Brookwood’s President and Director of Real Estate Acquisitions. Brookwood has successfully implemented a similar value-add strategy for multiple office properties in the Las Colinas submarket during the current economic recovery. Since acquiring the Embassy on December 23, 2013, Brookwood quickly completed its $1.5 million capital improvement plan and increased the property’s occupancy from 73.2% to 92.0%. Brookwood also acquired 125 John Carpenter Freeway and 5100 North O’Connor Boulevard on September 26, 2014, and has increased the property’s occupancy from 61.1% to 81.6% in less than two years.
According to CBRE, a global, real estate investment services company, the Las Colinas submarket has experienced positive absorption in five of the last six years, while vacancy rates have decreased by 6.4% to 16.3% from the first quarter of 2015 through the first quarter of 2016, and rental rates are projected to experience significant growth in the coming years. “The office market in Dallas is now entering the early stages of its expansion, as marked by its consistent positive absorption. With little new construction in the pipeline, we believe increasing demand will continue to push rental rates in the coming years,” Mr. Brown added.
About Brookwood Financial Partners, LLC – Brookwood is a nationally-recognized private equity investment firm that specializes in acquiring and managing value-add commercial real estate and related operating businesses on behalf of a select group of institutional investors, family offices and high net worth individuals. Since its founding in 1993, Brookwood has invested over $850 million of equity to acquire a portfolio of 223 commercial real estate and convenience store properties, with a realized and unrealized value in excess of $2.2 billion. The portfolio has spanned multiple asset classes, geographical markets and industries across the United States. www.brookwoodfinancial.com
