Good news and bad news for the Dallas office market: Banks and investors are finally resolving some high-profile problems as huge, distressed office towers change hands.
Cousins Properties Inc. announced its purchase of 2100 Ross Avenue, or Ross Tower, at a foreclosure auction this month. Cousins paid $59.2 million for the 844,000-sq.-ft. property, or $70 per sq. ft. “This is the point of the cycle when some existing owners capitulate,” says Dan Fasulo, managing director for data firm Real Capital Analytics, regarding the deal. “For investors, this is the time to pounce.”
Investors are paying much less than replacement cost for assets like Ross Tower and the overall Dallas office market growing stronger, according to local experts. However, the market may experience some strain as big, partly-empty buildings like Ross Tower come out of foreclosure and slash their rents to regain occupancy.
Read more...Distressed Office Properties Start to Move in Dallas via NREIonline.com
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