KBS, JP Realty acquire Richardson office portfolio for $44.5M

By Candace Carlisle
Staff Writer - Dallas Business Journal
 

KBS Strategic Opportunity REIT Inc. and JP-Richardson LLC, an affiliate of JP Realty Partners Ltd., have jointly bought a portfolio of five office buildings in Richardson for $44.5 million.

 

The joint venture purchased the property from Equastone LLC.

 

In anticipation of the closing, the joint venture borrowed $46.1 million from GE Capital in a four-year mortgage loan.

 

Equastone's Richardson portfolio includes Palisades Central I and II, which are a 10-story and 16-story office towers that include 43 acres on adjacent undeveloped land off North Central Expressway.

 

The portfolio also includes three office buildings overlooking Greenway Park, which includes two-, five-, and seven-story buildings.

 

The buildings were built between 1980 and 1985 and are 49 percent leased to 37 tenants. The balance of the lease terms are about $5.9 million, with rates at $18.20 per square foot.

 

The total rentable square footage in the portfolio is 728,857 square feet.

 

According to documents filed with the Securities and Exchange Commission, KBS Strategic Opportunity REIT has a 90 percent ownership of the portfolio.

 

JP-Richardson LLC is the managing member of the joint venture.

 

The limited liability company's affiliate JP Realty Partners acquired the nine-story Aberdeen office building off the Dallas North Tollway, which formerly housed the headquarters of Pizza Hut Inc.   

 

Equastone also recently sold other Dallas-Fort Worth area properties, including the 12-story office building in Uptown at 3333 Lee Parkway.

 
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