2280 N Greenville | Richardson, TX

Posted on January 12, 2012

Richardson, TX | Off-Market Opportunistic Office Acquisition

Project Data

Address: 2280 N. Greenville Ave., Richardson, TX 75082
Size:

229,074 SF with 5.9 parking ratio

Equity Partner: Center Square Investment Management
Lender: Mesa West Capital
Purchase Price: $17.6M ($77 PSF)
All-In Basis: $33.4M ($145 PSF)
Exit Price: $52.7M ($230 PSF)
Equity Required: $13.1M ($57 PSF)
Project Return: 44.7% IRR
Equity Multiple: 2.26x

Overview

Constructed in 1997 as the headquarters for Fossil Watches, 2280 N Greenville Ave is a two-story, 194,210 sf office building, and 2155 Campbell Creek Pkwy is a single-story, 139,000 sf warehouse situated in the Richardson Telecom Corridor, just east of the University of Texas at Dallas campus. This investment offered an opportunity to acquire a building within an active and tight market at an attractive basis and exit. It came with competitive advantages in floor plate size, but the warehouse was out of place in this location and the parking ratio was below market. We creatively addressed both issues by converting the warehouse to covered parking which increased the parking ratio to a market leading 7.3/1,000 sf.  Upon completion of our investment strategy, the property consisted of 194,210 sf of “tech-oriented,” “creative” office space with a 7.3/1000 parking ratio. Our original investment strategy worked as within 6 months of acquisition, GEICO executed a 12-year lease to occupy the entire building. The portion of the improvements budget set aside for multi-tenanting was repurposed to expand the building by 35,000 sf to accommodate GEICO’s increased space requirement. The property was then sold to Intercontinental Real Estate in June 2017 for $52.65MM ($230 psf) generating a 44.7% IRR and 2.26x EQM.