CIM Group Sells Dallas Mixed-Use Center

CIM Group has sold Turtle Creek Village, a mixed-use development in the Turtle Creek neighborhood of Dallas. CIM did not disclose the buyer, but media reports indicate that the asset was acquired by local company De La Vega Development. The transaction’s dollar value was not disclosed.

Turtle Creek Village consists of the Offices at Turtle Creek Village, a 230,000-square foot, 18-story, Class A office tower, and the three-building Shops at Turtle Creek Village, a 95,000-square-foot grocery-anchored retail center.

CIM Group had acquired the property in 2017 from Lincoln Property Co. as part of a portfolio transaction worth about $105 million, according to information provided by CommercialEdge, and later repositioned both the office and retail components.

The Offices at Turtle Creek Village is at 3838 Oak Lawn Ave. and was built in 1972. Its overall occupancy reportedly is around 94 percent.

CIM reported that in addition to upgrading the office building’s lobby and amenities, it responded to market demand from businesses seeking smaller spaces that are move-in ready by building out spec suites with high-end finishes.

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The Shops at Turtle Creek Village is anchored by regional grocery chain Tom Thumb (an Albertsons division) and includes such other tenants as Inwood National Bank, LensCrafters and World Market. The retail component dates back to 1969.

“Flight to experience”

In a twist on the nationwide “flight to quality,” the Dallas office market is seeing a “flight to experience,” according to a first-quarter report from CBRE, with buildings offering both a top location and premium amenities drawing an outsized share of tenant interest. As evidence, the report notes that although office vacancy is trending upward in the Metroplex, Class A net absorption remains positive.

The overall office vacancy was 27.2 percent, though fortunately the construction pipeline remained modest. And the Uptown/Turtle Creek submarket had the metro’s highest average direct asking rate, $37.84 per square foot, NNN, CBRE reported.

In contrast, in the first quarter the Dallas–Fort Worth retail market saw negative net absorption, with a small increase in vacancy (to 4.9 percent), the first such quarter since 2020, according to a report from Partners Real Estate. The reasons include less tenant movement and higher new deliveries. Still, Partners reported, “leasing activity remained robust at 2.0 million square feet, up 9.7 percent from the previous quarter.”