Although Addison may not have a famous skyline like downtown Dallas, it still has many high-profile, valuable office buildings – in fact, the 4.4 square mile Town has more than 12 million square feet of office space! Recently, a Florida-based investor recognized the potential of one such building, located near the southwest corner of the Dallas North Tollway and Belt Line Road in the Quorum office park, and purchased it. TerraCap Management, LLC is now the official owner of the 214,000 square-foot office building in Addison.
According to a statement Steve Hagenbuckle, TerraCap’s cofounder and managing partner gave to the Dallas Morning News, “Dallas has long been a strong growth market. Consistent with our thematic approach to investing in markets with outpaced employment and population growth, the Addison acquisition fits the profile for our investors and our asset management team.”
This office was building was developed in 1981 and includes many major tenants including Rexel Holdings USA, Tri-Delta, JE Dunn Construction and Robert Half Technologies. Commercial property firm CBRE and Lincoln Property Co. worked with TerraCap on the sale, and Chicago-based lender NXT Capital provided financing.
Prior to TerraCap’s purchase, the building was owned by a partnership of Frontier Equity and Artemis Real Estate Partners since 2015. It is located next to retail and restaurant space and the Marriott Quorum Hotel.
TerraCap Management, LLC is a commercial real estate investment manager focused on value-add real estate acquisitions in the South. Their focus is on the southern states because “population growth is rapid, supply is limited and prices our low,” according to their website. “Our emphasis is on well-established and well-built properties in strong locations, where potential for future competition is limited and the acquisition price is below the cost of replacement.” Since the company was founded in 2008, it has acquired more than 5,000,000 square feet of real estate.
Congratulations to TerraCap for taking over this amazing property in Addison!