Pillar Commercial, in a joint venture with Artemis Real Estate Partners, has acquired the 76,741-square foot One Preston Centre office building located at 8222 Douglas Avenue, Dallas, Texas. The Pillar/Artemis partnership acquired the property from a joint venture controlled by Pegasus Ablon and Lionstone Investments, which was represented by HFF in the transaction.
“We are pleased with this newest acquisition and equally excited about our growing investment platform with Artemis,” said Manny Ybarra, founder and president of Pillar Commercial. “Preston Center has historically been one of the best performing submarkets in the Dallas-Fort Worth region and has true barriers to entry based on highly restrictive geographic boundaries.”
Located in the heart of Preston Center, Dallas’ premier office and retail district, One Preston Centre is also surrounded by some of the most exclusive residential neighborhoods in the state, including University Park and Preston Hollow. Conveniently located near Northwest Highway and the Dallas North Tollway, the property offers direct accessibility advantages to other major business centers, including Dallas’ Central Business District, Uptown and the fast growing Legacy Business Park in Plano.
One Preston Centre is immediately adjacent to dynamic walkable amenities that include a number of casual eateries and upscale restaurants that cater to office employees, business executives and residents alike. In addition to its superior location, the property also provides an above-average parking ratio of 3.60 spaces per 1,000 square feet, a ratio considered above average for Preston Center.
Preston Center has evolved into Dallas’ most prestigious office submarket and is anchored by some of the city’s most successful tenant users. Many of the businesses are in thriving sectors like healthcare, private equity funds, hedge funds, private wealth management, law firms and family offices. The tenant roster at One Preston Centre is indicative of the market.
The acquisition of One Preston Centre is the second investment for the Pillar/Artemis joint venture in less than a year. In September of 2016, the group acquired Duke Bridges III, a 160,000 square-foot office development located across the North Dallas Tollway from The Star, the new 91-acre mixed-use development anchored by the Dallas Cowboys headquarters and state-of-the-art, 12,000 seat training facility and event center.
The partnership is acquiring the asset in an all-cash transaction, although the joint venture is working on securing senior debt financing with Regions Bank. The loan is expected to close around the end of July. Brian Carlton with HFF is securing the financing on behalf of the buyer group.
Artemis has been an active investor throughout the U.S. and Texas remains high on their list as a strong economic region with great prospects for continued robust growth. “North Texas is a dynamic market with a highly diversified economic base,” said Michael Bernstein, principal at Artemis. “Our joint venture investment with Pillar in Frisco is going very well, so we are excited about building on that success.”