Investors have snapped up a high-profile Allen office project.
Dallas-based Pillar Commercial teamed up with Oklahoma-based Hall Capital to purchase the One Bethany East office building in the Watters Creek development near U.S. Highway 75.
Built in 2018, the five-story, 120,000-square-foot office building has been up for sale since last fall.
It’s next to Allen’s new Watters Creek convention center.
“One Bethany East is a premier Class A office project with strong tenancy,” Manny Ybarra, founder and CEO of Pillar Commercial, said in a statement. “It is representative of the city of Allen’s impressive work to grow its corporate tax base with high-quality office and mixed-use developments.”
Pillar Commercial is a major owner of North Texas office properties. The Allen purchase is its fourth acquisition for the company’s Pillar Real Estate Fund I.
Pillar will relocate its offices from North Dallas to the One Bethany East building later this year.
The building was constructed by Kaizen Development Partners and is more than 80% leased to Credit Union of Texas, Verado Energy and Boss Fight Entertainment.
Commercial property firm JLL marketed the two-year-old office building for sale. JLL’s Brian Carlton, De’On Collins, Jack Crews and Parker McCormack handled the transaction.
Oklahoma-based Hall Capital — a 100-year-old family business — is a partner in the deal.
“This investment fits perfectly for our latest real estate fund,” Kirk Hall, vice chairman of Hall Capital, said in a statement. Hall said the company is shopping for other “office and industrial throughout the southeastern United States, Oklahoma and Texas. One Bethany East fits that criteria perfectly.”
The One Bethany East office building is next door to Kaizen Development’s larger One Bethany West, which is more than 40% leased to tenants including Highlands Residential Mortgage and Newline Interactive Inc.
The developer is starting work next month on another building in McKinney.
“We ran a very exhaustive process to find the most responsible buyer for One Bethany East,” said Derrick Evers, managing director and CEO of Kaizen Development Partners. “Our mission, if we were ever to sell one of our buildings, is to find a group of like-minded individuals to carry forward high standards for our tenants and the city of Allen. Pillar Commercial, I’m proud to say, exceeded expectations”