A landmark tollway tower is up for sale, as activity in some Dallas-Fort Worth office submarkets has heated up in recent weeks.
The iconic Providence Towers office complex at Spring Valley Road and the Dallas North Tollway in Farmers Branch is up for grabs again. Real estate firm Joseph Lang LaSalle (JLL) is marketing the 12-story, nearly 525,000-square-foot Class A property at 5001 Spring Valley Road.
Built in the late 1980s for around $85 million, the high-rise is defined by its trademark nine-story archway in the center of the building. The property is 62% occupied and was recently renovated in 2021. In-place rental rates at the property are 27% below market, according to the listing.
The property hit the market in 2017. KBS Realty Advisors has owned the property since 2009. Amenities at the high-rise include a wine bar, putting green and a fitness center. The Dallas Central Appraisal District valued the property at more than $91 million for tax purposes.
Attempts by The Dallas Morning News to contact KBS Realty and JLL were not returned before publication.
Trading activity north of downtown has been active in recent weeks.
Earlier this month, Estein USA and Vanderbilt Office Properties acquired Pinnacle Tower from New York Life at 5005 LBJ Freeway in Farmers Branch. The purchase price was not disclosed, but the partnership secured a $100 million mortgage loan from Goldman Sachs to fund the deal, records show.
Pillar Commercial and Ascent Real Estate Advisors acquired Rambler Park at 7557 Rambler Road in Dallas. Financial terms of the deal weren’t disclosed. The property is 90% leased to tenants that include Children’s Health, Westwood Professional Services.
Koa Partners acquired the Urban Towers, an 850,000-square-foot office complex at 222 West Las Colinas in Irving. The firm plans to make more than $40 million in upgrades to the property. The city of Irving will provide $20 million in incentives over seven years provided certain conditions are met.
JLL is also marketing Sherry Place Lane, a more than 300,000-square-foot office property at 5956 Sherry Lane in the Preston Center submarket.
Steve Triolet, senior vice president of research and market forecasting at real estate firm Partners, said the lower tollway office submarket has seen a recent resurgence of activity. He pointed to Providence Towers, the acquisition of Pinnacle Tower and real estate firm Colliers taking 33,000 square feet in North Dallas’ International Plaza III as examples.
The Dallas office market has started the year on a positive note, according to a recent report from JLL. Move-ins from several large occupiers helped the region as North Texas saw 332,000 square feet of positive net absorption.
The region’s office development pipeline is 83.3% preleased. Roughly 1.57 million square feet of space remains under development.