Dallas-area building available

Real Estate Alert, May 5, 2004

A developer has listed a Dallas-area office building that is fully leased.

The 154,000-square-foot International Business Park 5 is located at 4000 International Parkway in Carrollton. It is expected to fetch $25 million, or $162/sf, which would provide the buyer with an initial annual yield of 10.25%. Holliday Fenoglio Fowler has the listing.

The property has an assumable $15.2 million mortgage, carrying a 7.99% rate, that runs through 2011. Brokers familiar with the property said that the developer, Billingsley Co., prefers that the buyer assume the loan, which would spare Billingsley from the prepayment penalty. Billingsley would also consider bringing in an equity partner instead of conducting an outright sale.

The three-story building is leased through 2009 to mortgage lender Sebring Capital Partners and Real Page, an apartment management consultant. The property is located in the 300-acre International Business Park, which Billingsley is developing near the intersection of George Bush Turnpike and Dallas North Tollway, just north of Dallas. In January, a private investor paid $25 million for a 205,000-sf building in the business park, at 4101 International Parkway.

Class-A asking rents average $20.80/sf in the immediate area, known as the Upper Tollway/West Piano submarket. The submarket occupancy rate is 85.7%, which exceeds the 79.5% rate in the greater North Dallas area.