City Office REIT Pays $134M for Dallas Building

The Terraces

After spending $150 million on a 1.3 million-square-foot mixed-use asset in downtown Phoenix, City Office REIT has acquired The Terraces in Dallas for $133.5 million, or $773 per square foot.

A partnership between Lionstone Investments and PegasusAblon completed the 173,000-square-foot office property in 2017. According to CommercialEdge data, the sale marks the first time the property traded.

Located at 5960 Berkshire Lane, just south of the Dallas North Tollway, the 12-story building is the newest in the Preston Center area and is less than 8 miles from downtown Dallas. The LEED Gold certified property was 99 percent leased at the time of sale with a weighted average remaining lease term of eight years. Common-area amenities include a new fitness center, conferencing facility, full-service deli and a barista, as well as two floors of private terraces.

Office occupancy rates in the Preston Center area have surpassed those in Dallas-Fort Worth by roughly 9 percent in the past decade, according to City Office REIT information. The Metroplex has recorded an improvement in vacancy going into the last quarter of 2021, CommercialEdge data shows.