Pillar Commercial JV Buys Dallas Office Mid-Rise

One Preston Centre

A partnership including Pillar Commercial has acquired One Preston Centre, an office building totaling 76,741 square feet in Dallas’ Preston Hollow submarket. Newmark arranged the disposition of the office tower, while CommunityBank of Texas originated the acquisition financing.

The Newmark team representing the seller included Vice Chairmen Chris Murphy, Robert Hill and Gary Carr and Director Chase Tagen.

The property last traded in mid-2017, when Lionstone Investments sold the multi-tenant asset, public records show. A month later, Regions Bank provided a $14.4 million refinancing package for the office mid-rise.

Earlier this month, Pillar Commercial announced the purchase of another office property in Dallas, representing its fifth acquisition through Pillar Real Estate Fund I. JLL facilitated the sale of Bluffview Towers, a two-building Class A office complex in the West Dallas submarket.

The Dallas office market saw 312,227 square feet of positive net absorption in the last quarter of 2021, according to JLL data. During the same period, office vacancy increased to 25.5 percent, boosted by the Metroplex’ development pipeline.

One Preston Centre

Situated on less than an acre at 8222 Douglas Ave., One Preston Centre was completed in 1980 and underwent renovations in 2006, according to CommercialEdge data. The nine-story building includes a retail portion encompassing 2,000 square feet and features 10,250-square-foot floorplates, as well as a parking ratio of 3.7 spaces per 1,000 square feet across a five-story parking garage.

While the tenant base includes a majority of health-care tenants, such as Enterhealth, Highland Park Orthodontics and Preston Centre Pediatrics, it is also home to J.K. Financial and PegasusAblon, among others CommercialEdge shows. At the time of the sale, the building was 88 percent occupied.

One Preston Centre is easily accessible, within less than half a mile from the Dallas North Tollway as well as the Northwest Highway. Dallas Love Field Airport is some 4 miles southwest, while downtown Dallas is within 7 miles.