Lincoln JV Snaps Up 1.1 MSF Dallas Office Campus
The deal follows a $223 million loan default.
Lincoln Property Co. and Cross Ocean Partners have acquired the 1.1 million-square-foot The Colonnade office campus in Addison, Texas. Newmark arranged the receivership sale on behalf of Trigild and CWCapital.
The former owner, Fortis Property Group, defaulted on a $223 million loan in 2024. UBS AG originated the debt in 2019, subsequently securitizing part of it in a CMBS conduit package.
Fortis acquired the 1983-completed asset in 2013 and renovated the campus between 2015 and 2017, investing roughly $32.5 million in capital improvements. Enhancements continued in recent years with $10 million in upgrades to the gym, conference facilities and building systems.
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The campus consists of three 14-story buildings connected through a four-story glass atrium. The LEED Gold-certified property was 59 percent leased as of August, according to a UBS servicer report. Tenants include Google and Hilton Reservations & Customer Care.
Located on more than 12 acres at 15301-15305 N. Dallas Parkway, the property is in the Lower Tollway submarket, near the Addison and Knoll Trail stations, as well as the Addison Circle Park.
Newmark Managing Director Stephen Schwalb, Vice Chairmen Chris Murphy, Robert Hill and Gary Carr, as well as Director Austin Sheahan, worked on behalf of the seller.
Dallas office delinquencies on the rise
CMBS delinquency rates reached 8 percent in September, the highest reading since November 2020, according to a Trepp report. The office index stood at 12.2 percent, the highest among all asset classes.
Just last month, a downtown Dallas office tower returned to its lender after Woods Capital and Pacific Elm Properties did not pay a $78 million loan, The Dallas Morning News reported. Investors of the Morgan Stanley Capital I Trust 2016-UBS9 took ownership of the 840,000-square-foot tower at 2100 Ross Ave.
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