Vancouver-based real estate investment trust City Office recently announced its acquisition of The Terraces at Douglas Center in Northwest Dallas. The company paid $133.5 million for this expansion into what it believes to be a premier Dallas submarket.
The Terraces is located at 5960 Berkshire Lane in University Park and was completed in 2017, the newest office property in the Preston Center submarket. Incorporating nearly 172,000 square feet of LEED Gold-certified Dallas office space across 12 floors, the property was 99% leased at the time of sale. The diverse tenant roster comes with a weighted remaining average lease term of approximately eight years.
Located in a walkable concentration of high-end retail and fine dining, The Terraces was delivered with a full suite of amenities, including a conference facility, rooftop deck, barista, full-service deli and state-of-the-art fitness center. Moreover, the tiered building design offers multiple outdoor terraces for exclusive tenant use.
“Expanding in Dallas’ strongest and highest-barrier-to-entry markets has been a priority,” said James Farrar, chief executive officer at City Office REIT. “The acquisition of The Terraces in Preston Center aligns with our focus on acquiring superior properties with long-term cash flow in the most desirable submarkets. The amenity package, high-end tenant suites and prime location make The Terraces one of Dallas’ top office properties. The fully leased building provides cash flow stability with future growth in the center of one of Texas’ wealthiest neighborhoods.”
Indeed, the property is located in the heart of Preston Center, a niche submarket that stands out in the Dallas-Fort Worth metroplex due to its proximity to the most prestigious residential neighborhoods in Dallas, as well as easy access throughout the region via the adjacent Dallas North Tollway and Northwest Highway. It also offers a diverse mix of small- and medium-sized companies that operate in everything from manufacturing; energy and utilities; finance; technology; and more. A premier professional destination, occupancy rates here have exceeded Dallas-Fort Worth rates as a whole by nearly 10% during the last decade.