Lone Star Funds Acquires Dallas Office Tower

An affiliate of Lone Star Funds has acquired Premier Place, a 20-story, 457,901-square-foot office tower in Dallas. The move came through the firm’s Lone Star Real Estate Fund VII LP.

The seller and the deal’s dollar value were not disclosed, but Yardi Matrix reports the previous owner as Glenstar Properties. Lone Star did not reply to Commercial Property Executive’s request for comment.

Notable tenants include Edward Jones, Merrill, Altera Development Company and BlackRock, according to Yardi Matrix.

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Premier Place recently underwent a $15 million renovation and features a renovated lobby, lounge and bar and courtyard, in addition to a 62,000-square-foot Life Time Fitness gym. Its location at 5910 N. Central Expressway is adjacent to Mockingbird Station, alongside access to the Dallas Area Rapid Transit system.

The building features flexible floor plans ranging from 800 to 21,000 square feet. Glenstar will remain the property manager.

Signs of stability in Dallas

Dallas’s office market is seeing a bit of “musical buildings,” as tenants shift here and there, but the region also continues to benefit from corporate in-migration, according to a second-quarter report from JLL.

Deloitte moved from Dallas Arts Tower in the Dallas CBD to 23Springs in Uptown, and Merit Energy shifted from Galleria North Tower II in Far North Dallas to Lincoln Center in LBJ Freeway. Each move involved more than 100,000 square feet.

As for corporate relocation to the Metroplex, Samsung recently announced that it will relocate its U.S. headquarters from New Jersey to Plano.

And in June, the Dallas City Council approved $18.5 million in financing and tax abatements for Morgan Stanley, in a bid to woo the financial services firm to the Metroplex. Morgan Stanley is deciding between Dallas and other cities, including the Atlanta suburb of Alpharetta, Ga., for a new major office location.

Another Dallas-area office building to change hands in recent weeks was The Star at 17 Cowboys Way, a 313,417-square-foot office asset in Frisco, Texas. FM’s Hobbs Brook Real Estate bought the asset from Blue Star Land, the real estate arm of the Dallas Cowboys.