A 10-story tower along the Dallas North Tollway just north of Galleria Dallas has been sold. Taiwanese investment firm Fidelity Commercial sold Wellington Centre to Maryland-based Pratt Street Capital on Friday, according to commercial real estate agency Newmark.
Wellington Centre, which has 210,465 square feet of space, has a 91% occupancy rate and includes a dining area, conference center, several tenant lounges, and outdoor seating areas. It was built in 1986 and renovated in 2015, according to the Dallas Morning News.
The new buyer says even more renovations are planned for Wellington Centre.
“I think that we can transform Wellington Center into a Class A-type of office that employers are chasing as they attempt to lure their employees back to the office,” said David Braunstein, Pratt Street’s head of acquisitions.
Pratt Street continues to bolster its Dallas-Fort Worth portfolio, acquiring two office high-rises called Park West along Interstate 635 in Farmers Branch, near the Cypress Waters development northwest of Dallas, according to the Dallas Morning News. The firm now has five office properties in the Dallas-Fort Worth area totaling 2 million square feet.
The deal was financed with a $28 million loan, according to county records.
“This transaction reflects the continued investor demand in DFW, one of the nation’s top corporation relocation destinations and business-friendly environments,” said Gary Carr of Newmark, one of the agents representing the seller in the deal.
Although a higher interest rate environment has created a slowdown in commercial property transactions nationwide, and lending has also stalled, the buyer is encouraged by what DFW offers.
“We’ve always loved the corner of Main and Main, which is the tollway and 635,” Braunstein said. “The buildings that are well-managed, well-maintained and [have owners who] are willing to invest back into the building will continue to do well, especially in this economic climate.”
As previously reported by The Dallas Express, despite headwinds, Dallas’ real estate market is showing no signs of slowing down. A report on Tuesday from the National Association of Realtors named Dallas third on a list of the top five markets to watch.
Global property consultant MSCI said at the mid-year point, Dallas was the top commercial real estate market for the third year in a row.
The first nine months of 2022 saw $33 billion in commercial transactions in the Dallas area, up 10% year-over-year, according to MSCI Real Assets. Meanwhile, real estate transactions nationally declined 21% year-over-year.