Florida investor snaps up Addison tower

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by Steve Brown, Real Estate Editor | Original Source

A high-profile Addison office tower has a new owner.

The 11-story Addison high-rise is located near the southwest corner of the Dallas North Tollway and Belt Line Road in the Quorum office park.

Florida-based TerraCap Management LLC bought the 214,000 square-foot office building – its first such purchase in North Texas.

The company has a large portfolio of office properties in the Southeast U.S.

“Dallas has long been a strong growth market,” Steve Hagenbuckle, TerraCap’s cofounder and Managing Partner, said in a statement. “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.

“We plan on expanding our presence in Dallas.”

The building is more than 80 percent leased and was developed in 1981. Major tenants in the building include Rexel Holdings USA, Tri-Delta, JE Dunn Construction and Robert Half Technologies.

Commercial property firm CBRE’s Gary Carr, Evan Stone, John Alvarado, Eric Mackey, Robert Hill and Jared Chua and Lincoln Property Co. worked with TerraCap on the sale.

Chicago based lender NXT Capital provided financing. Terms of the sale were not disclosed.

Since 2015, the Addison tower has been owned by a partnership of Frontier Equity and Artemis Real Estate Partners. The building was renovated in 2016.

The building is next door to Addison retail and restaurant space and the Marriott Quorum Hotel.

“We really like the urban infill location, plus the walkability for tenants, which we feel is becoming more important in today’s market,” said Steve Good, TerraCap’s national director of acquisitions. “We feel it’s a great addition to our portfolio and we’re excited about the opportunity.”

TerraCap has been in business since 2008 with offices located in Florida and Atlanta.

The firm owns or manages more than 5 million square feet of properties.