Dilweg Enters Dallas With Business Park Acquisition

Royal Tech Business Park. Photo courtesy of Dilweg.

Dilweg has expanded its commercial footprint in Texas with the acquisition of Royal Tech Business Park, an 11-building property in Irving. PS Business Parks was the previous owner, according to CommercialEdge.

Formerly known as The Dilweg Cos., the Durham-based investor plans to reposition the property’s 622,000 square feet of office, laboratory and warehouse space, and rename the campus as Royal Tech Commons. A CBRE team represented the seller in the transaction. Dilweg hired JLL for leasing management at its new property.

Situated in the Las Colinas submarket of Dallas-Fort Worth—along Springwood Drive—the business park was constructed between 1989 and 1999. According to CommercialEdge data, the asset last changed hands in 1998, in a $190 million portfolio acquisition by PS Business Parks.

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The 11-building complex currently offers suites ranging from 1,000 to 75,000 square feet, 12- to 14-foot industrial clear heights, and a parking ratio of 10 spaces per 1,000 square feet. The business park also includes a 9.2-acre vacant land parcel.

“As part of our overall creative repositioning, we have earmarked approximately $19 million to overhaul the look, feel and experience of the park. And as part of our repositioning, Dilweg plans to implement numerous capital improvements that will include new outdoor amenity spaces, modern building signage, contemporary wayfinding, exterior upgrades, new landscaping, roof replacements, HVAC improvements and parking lot upgrades,” Blake Underwood, Managing Director of Acquisitions for Dilweg told Commercial Property Executive.

Anchor tenants include Wells Fargo Bank, TekSystems Global Services, Coinmach Service Corp. and Whataburger Restaurant Corp. The business park’s location next to DFW International Airport allows for immediate access to several major thoroughfares and public transportation to all major areas of the Metroplex.

Demand for high-quality office rising in DFW

According to Dilweg, the property offers an opportunity to meet demand for high-quality space from the Metroplex’s growing and established companies—with office bound to play a big role in Dallas-Fort Worth commercial real estate going forward.

“We are encouraged we will be able to source additional value-add office investment opportunities in Dallas and will be aggressive in uncovering those, however it may come, for our investors,” Underwood told CPE.

Commercial real estate activity in Dallas-Fort Worth rebounded to a healthy level last year. More than 28 million square feet of office space traded in 2021, according to CommercialEdge data, while rents for industrial space were up by 4.3 percent year-over-year as of January—30 basis points above the national rate.

Multiple mixed-use developments are currently underway in the Metroplex. Among recently announced projects is Stream Realty’s The QUAD—a 350,000-square-foot development rising in Uptown Dallas, for which the developer landed a $176.2 million loan.