Dallas Investors Ante Up $33M for office park.

[flyingcowz]

Dallas Investors Ante Up $33M for 550,122-SF Office Park in Oklahoma
By Connie Gore
Last updated: July 8, 2005  09:29am

DALLAS-Two local investments groups have joint ventured on a $33-million acquisition of TechRidge Office Park in Tulsa, OK, taking over 550,122 sf in 13 office buildings. The 41-acre asset is 82% occupied.
Ashwood American Properties Inc. and Macfarlan Real Estate Investment Management got the deed through a select marketing by joint venture sellers, the Beverly Hills, CA-based Kennedy-Wilson International Inc. and ING Realty Partners of Chicago. "They decided to take some money off the table in Tulsa," Patrick Coates, marketing director for the 5% seller, Kennedy-Wilson, tells GlobeSt.com about ING's motivation for the sale of the 9726 E. 42nd St. park in East Tulsa's Broken Arrow submarket.

For Ashwood, it's the first time it's ventured outside the state line. "It's big enough that it makes sense for us to go outside Texas," Ashwood principal Gary Horn says. The as-is acquisition is "in great shape," he says, ruling out a rehab as part of the takeover.

Horn says the upside rests in the vacancy of the class B space. "We've got a lot of activity on it," he adds, pointing out Kennedy-Wilson was kept in place to lease and manage the Koger Co.-developed park started in 1984 and finished in 1982.

The 138-tenant, fully built-out park has minimal lease roll for the next year in its local and national roster, according to Horn. The top space takers are West Telemarketing Corp., TCI Marketing Inc., Sojourn Care, Paychexs Inc., Sabre Inc., all mostly 20,000-sf tenants, and newcomer Dollar Thrifty Automotive Group, which just signed a 30,000-sf pact for a fall move-in.

Coates says TechRidge, with its buildings named after Oklahoma counties, was selectively marketed with an ask based on a cap rate nudging 9%. The deal closed at 9.2%, he says. Coates, whose territory spans all of Oklahoma, teamed with Eric Lang in Kennedy-Wilson's Austin office and James Gustine of Gustine Properties in Tulsa on a sale that ended a six-year reign by the JV. Coates leases TechRidge Office Park and Kennedy-Wilson's Victor Johnson manages it.

-Paul