Dallas Tower Trades, Lands New HQ Tenant

10000 NCX. Image via Google Street View

Westdale Real Estate Investment and Management has parted ways with 10000 NCX, a Class A office tower at 10000 N. Central Expressway in Dallas.

With the assistance of Colliers International, Westdale sold the 300,000-square-foot asset to Dallas-based investor Ray Washburne for an undisclosed amount.

Tremont Realty Capital, through its managed company Tremont Mortgage Trust, provided a $50 million first mortgage floating-rate bridge loan to finance the acquisition of 10000 NCX. TRMT’s manager, Tremont Realty Capital, was introduced to the transaction by Colliers International, which advised the sponsor, Charter Holdings.

The loan has a 3-year initial term, with two-year extension options. The initial advance was $43.5 million, in addition to future advances of up to $6.5 million.

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The transaction comes after a relatively short-term hold. Westdale had owned 10000 NCX since 2015, when the company purchased the property for $45 million with financing assistance from BBVA USA, according to CommercialEdge.

Clad in glass and Swedish Mahogany granite, the 15-story building first opened its doors in 1986 and underwent its most recent comprehensive renovation in 2012. The tower is set to become the new headquarters of Advancial Federal Credit Union, which has committed to 50,000 square feet of space, including room for a lobby bank.

The Colliers team relied on its well-honed expertise to orchestrate a sale that required a certain amount of finesse. “The price point we needed to achieve in order to transact could only merit meaningful immediate occupancy, as the property is 70 percent occupied. The buyer we were able to secure had just that, with their tenant taking 17 percent of the building day one,” Creighton Stark, executive vice president with Colliers International, told Commercial Property Executive.

“This deal would not have otherwise worked based on the seller’s pricing expectations. We artfully navigated through the transaction to assure a huge win for all parties involved, including and not limited to the buyer, seller, lender, tenant and the community.”

Colliers pulled double duty on the 10000 NCX Transaction. Stark and colleague Chris Boyd, senior vice president with Colliers, not only represented Westdale, but they also provided debt advisory services for the buyer. The lending community embraced the 10000 NCX opportunity on most fronts, according to Stark and Boyd.

“Based on the competitive nature we were able to create, with the borrower and collateral involved, lenders pushed extremely hard to take center stage. And as a result, the ultimate terms were extremely favorable,” said Stark. Washburne plans to utilize a portion of the proceeds from the acquisition financing for near-term upgrades at 10000 NCX.

More dollars headed to Dallas

While Dallas’ office sector has yet to recover from the ravages of the pandemic, Colliers anticipates that increasingly eager investors will continue to pursue quality office properties across the Dallas/Fort Worth market and the entire North Texas region. The attraction to the area is multi-faceted.

Stark noted that “North Texas offers a progressive government, favorable business climate, low cost of living, zero state income tax, centrally located relative to the rest of the U.S., highly educated, skilled workforce, higher quality of life, efficient highway system, dynamic professional environment with tremendous opportunity to succeed.”

Transactions in the Dallas area within the last few months include Singapore-based Mapletree Investments Pte Ltd.’s purchase of the 800,000-square-foot Galatyn Commons complex in Richardson for approximately $240 million. Opal Holdings acquired the 1 million-square-foot Burnett Plaza in Fort Worth for $137.5 million and Larson Capital Management acquired Granite Tower at the Centre, a 240,000-square-foot property in Farmers Branch. And the list goes on. Stark has advice for investors and tenants alike: “The water is warm down here in Dallas, jump on in!”